USD Faces Uncertainty as Trump Signals Prolonged Iran Negotiations

The US dollar faces a period of geopolitical uncertainty as President Trump pushed back against pressure to expedite negotiations with Iran, comparing the timeline to extended US engagements in Vietnam and Iraq. Trump confirmed that communications with Iranian leadership are ongoing and that Iran wants a deal, but indicated he is in no rush to finalize terms despite being approximately nine weeks into the process. The prolonged nature of these negotiations introduces sustained geopolitical risk that could weigh on USD pairs, particularly against traditional safe-haven currencies like JPY and CHF. The Middle East tension backdrop has historically driven volatility in oil-sensitive currency pairs including USD/CAD and AUD/USD. Traders should monitor developments closely, as any escalation or breakdown in talks could trigger sharp moves in dollar-denominated pairs. Near-term, the lack of urgency from the administration suggests continued range-bound trading for the dollar index, with geopolitical headlines likely to serve as the primary catalyst for directional moves in the sessions ahead.