EL7.AI
ForexUpdated•Originally published 13 April 2026•Updated 13 April 2026•
1 min read

US Dollar Rises as Iran Peace Talks Fail and US Initiates Naval Blockade

Key Facts

1The US dollar rose 0.3% against the euro to $1.169 and 0.25% against the British pound to $1.342.
2Donald Trump announced that the US would initiate a maritime blockade of all maritime traffic entering and exiting Iranian ports.
3HSBC expects the dollar to weaken despite current gains driven by geopolitical tensions.

The US dollar experienced a modest recovery following the breakdown of peace negotiations between Washington and Tehran. This geopolitical shift was further intensified by Donald Trump's announcement of a maritime blockade on all traffic entering and exiting Iranian ports. Consequently, the greenback rose 0.3% against the euro to $1.169 and 0.25% against the British pound to $1.342. Market analysts attribute this movement to increased safe-haven demand as diplomatic efforts failed and conflict escalated. However, HSBC remains cautious, projecting that the dollar may eventually weaken despite these current geopolitical gains. The market reaction reflects a recalibration of risk following the sudden escalation of tensions in the Middle East region.