FX.co ★ Euro Steady as Trump’s Iran Threats Fuel Market Uncertainty

The euro held steady against the dollar on Tuesday, trading near $1.154, as European investors returned from the Easter break and weighed the intensifying conflict in the Middle East. US President Trump escalated his rhetoric toward Iran, insisting that the Strait of Hormuz be reopened by today’s deadline or face severe US military action, including strikes on bridges and power plants, even at the risk of breaching the Geneva Conventions. Iran, for its part, has continued to block liquefied natural gas (LNG) tankers from transiting the strait, exacerbating a global fuel shortage. The resulting spike in energy prices has strengthened expectations of a tighter monetary stance, with markets now anticipating three interest rate increases by the European Central Bank this year.