Dollar firms as cracks emerge in peace deal, pound dips on Starmer uncertainty

The dollar was firm on Monday as uncertainty ​clouded a tentative U.S.-Iran peace deal following threats from President Donald Trump to restart the war in the ‌Middle East and Tehran’s announcement it had closed the Strait of Hormuz. Despite rising tensions, US-Iran peace talks stretched into their second day in Switzerland under the terms of a memorandum of understanding reached last week to extend a ceasefire from April for at least another 60 days. Chris Weston, ​head of research at Pepperstone, said it was not surprising how quickly adherence to the terms of the ​deal had broken down. “Ultimately, what matters to markets is the flow of cargo through the Strait ⁠of Hormuz.”