FX.co ★ Euro Hovers Near Two-Week Low as Hormuz Tensions Weigh

The euro was steady at $1.17 against the dollar, hovering near a two-week low, as tensions in the Strait of Hormuz persisted and diplomatic efforts stalled. With no new peace talks scheduled, the United States and Iran remain at odds over control of the critical shipping route. President Trump extended the April 7 truce indefinitely, pending a new proposal from Tehran, but Iranian officials have ruled out immediate negotiations. The deadlock pushed Brent crude above $103 per barrel, intensifying economic uncertainty. Fresh data showed the Eurozone’s private sector shrank in April at the fastest pace since November 2024, as the war in Iran drove up energy costs, eroding consumer demand and weighing on the services sector. At the same time, Germany’s Economics Ministry cut its 2026 growth forecast by half, citing the energy shock stemming from the Middle East conflict.