Currency markets tread water amid uncertainty over US efforts to end Iran war - Reuters

Currency traders are showing skepticism about U.S. efforts to negotiate an end to the Iran war, with foreign exchange markets drifting without clear direction as a result. The lack of confidence in diplomatic progress is restraining major currency movements that typically respond to geopolitical developments. Markets appear uncertain whether the Trump administration can achieve a resolution or whether the conflict will continue to simmer, leaving investors in a holding pattern. Weak conviction on either outcome—successful negotiation or prolonged conflict—typically reduces volatility and trading activity in currency pairs sensitive to Middle East tensions. The muted market reaction suggests traders are waiting for concrete signs of diplomatic progress or military developments before making significant positioning moves.