USD weakens as Iran seeks ceasefire, offers nuclear flexibility

USD has softened across major pairs following reports that Iran is pursuing diplomatic channels through Qatar, Saudi Arabia, and Oman to press the US for an Israel ceasefire agreement. In exchange, Iran signals increased flexibility in nuclear negotiations, potentially easing Middle East tensions that have supported safe-haven dollar demand. The development comes as G7 nations draft a joint statement calling for de-escalation between Israel and Iran, though Trump's approval remains pending. Markets are interpreting these diplomatic overtures as risk-positive, reducing demand for defensive USD positions. The dollar index has pulled back from recent highs, with EUR/USD recovering toward 1.0850 and USD/JPY easing from 155.00 levels. Traders should monitor further geopolitical developments, as any breakdown in negotiations could quickly reverse current risk-on sentiment and reignite safe-haven flows back into the dollar.