Euro Holds Near Three-Month Highs Ahead of US Sanctions Against Iran

The Euro has held near three-month highs against the US Dollar despite minor losses on Monday. The EUR/USD pair remains above 1.1650, with markets cautious ahead of the announcement of new US sanctions against Iran.

US Treasury Secretary Scott Bessent had stated that the US is preparing a 'single greatest offensive ever marshalled against an adversary' to sever all economic lifelines to Iran.

The market is now waiting for the details of these measures, which may affect traditional Iranian allies like China. Tehran has threatened to stop oil exports from Gulf countries and warned countries collaborating with the US that sanctions would be considered an 'act of war'.

Oil prices remain subdued, with Brent Crude 1.5% below Friday's highs.