Global Markets — The U.S. dollar weakened on Thursday as growing hopes of a de-escalation in tensions between Iran and the United States boosted investor appetite for oil-linked and risk-sensitive currencies.
Market sentiment improved following indications that the conflict may be moving toward a diplomatic phase, easing fears of further disruption to global energy markets.
Oil-exposed currencies gained support as crude prices steadied after recent volatility driven by the regional crisis. Analysts said reduced geopolitical anxiety typically weakens demand for traditional safe-haven assets such as the dollar while supporting commodity-linked currencies.
At the same time, authorities in Japan renewed verbal intervention in support of the yen, warning against excessive speculation in currency markets. The comments from Tokyo kept traders cautious amid expectations that Japanese officials could intervene more directly if pressure on the yen intensifies.
Global financial markets have remained highly sensitive to developments surrounding the Iran-U.S. conflict, with sharp movements in oil prices, currencies, and investor positioning reflecting uncertainty over the trajectory of the crisis.
Analysts say the direction of markets in the coming days will depend largely on diplomatic signals from Washington and Tehran, the stability of global energy supply routes, and broader risk sentiment across international markets.