Euro Retreats from Seven-Week High as Energy Price Fears Persist
The euro has retreated slightly from its seven-week high of $1.155 reached on Wednesday, trading around $1.152 on Friday as investors reassess the outlook for energy prices and monetary policy.
Oil prices have remained lower for the week but extended their gains over the past two sessions, with renewed supply concerns raising fears that higher energy costs could keep inflation elevated.
Iran and Oman are reportedly working on an agreement to establish transit routes through the Strait of Hormuz, although no deal has yet been announced. Iran published a restrictive draft plan that could limit access for US and Israeli vessels and require compensation from countries it considers hostile, intensifying concerns about oil supply disruptions.
Despite these concerns, investors remain hopeful that a deal to reopen the waterway would eventually lower oil prices and ease inflationary pressures.