USD Rallies as Trump Signals War End, Potential Russian Oil Sanctions Relief

The US dollar strengthened against major counterparts as US equity markets staged a sharp late-session rebound following comments from President Trump suggesting the ongoing conflict could end soon. Trump indicated he may consider lowering sanctions on Russian oil, a move that could increase global crude supply and ease inflationary pressures — a USD-supportive development. Additionally, Trump's remarks about potentially taking control of the Strait of Hormuz introduced fresh geopolitical uncertainty, adding complexity to the energy and forex landscape. The prospect of reduced sanctions on Russian oil could weigh on commodity currencies like CAD and NOK if crude prices decline, while also potentially benefiting EUR/USD if European energy costs fall. Near-term, USD/JPY may find support from improved risk appetite as equity markets recover. Traders should monitor developments closely, as any concrete policy action on sanctions or the Strait of Hormuz could trigger significant volatility across USD pairs, oil-linked currencies, and safe-haven flows into JPY and CHF.