USD Steady as Bessent Signals Gradual Iran Sanctions Relief Approach

The US dollar held relatively steady as Treasury Secretary Bessent addressed the Iran blockade situation, indicating that any sanctions relief would be implemented gradually. Bessent emphasized a data-dependent approach that allows policymakers to respond more effectively to evolving economic circumstances, suggesting no abrupt policy shifts are imminent. On the currency front, Bessent pushed back against common misconceptions about dollar strength, reinforcing the administration's nuanced stance on FX policy. The measured tone on Iran sanctions suggests limited near-term disruption to oil markets and, by extension, to dollar dynamics tied to energy flows. Traders should note that a gradual unwinding of sanctions could slowly increase global oil supply, potentially easing inflationary pressures over time. For the DXY, the cautious policy stance supports current levels as it reduces geopolitical tail risk. Near-term, the dollar may remain range-bound as markets digest the implications of a slow, conditional sanctions rollback alongside ongoing macro data releases.