Washington, DC – The US dollar strengthened broadly as there were no signs of progress in talks aimed at ending the war in the Middle East. This pushed oil prices higher and raised investor concerns about the potential need to keep interest rates high to counter inflationary pressures, according to Reuters. Investors now fear that the ceasefire in place since April 7 may be in jeopardy. They also worry that hostilities could resume in the conflict.
The euro fell 0.24% to $1.1754. The pound sterling traded at $1.3575, down 0.26%. The dollar index, which measures the value of the US currency against six other currencies, rose 0.2% to 98.17. US President Donald Trump described Tehran’s response to Washington’s proposal as “rubbish” and “very weak.” He estimated the chance of the temporary ceasefire holding at “about one percent.”
The Axios news website, citing three informed US sources, reported that President Donald Trump will hold a high-level meeting with his national security team on Monday. The meeting will discuss the course of a war with Iran. The Times of Israel confirmed that the meeting will take place in the White House Situation Room, a room designated for managing major security crises.
The meeting includes the administration’s “hawks,” most notably Vice President J.D. Vance, Secretary of State Marco Rubio, and Secretary of Defense Pete Hagsett. Also present are CIA Director John Ratcliffe and Chairman of the Joint Chiefs of Staff General Dan Keane. This move comes after the collapse of talks with Tehran on Sunday. US officials confirmed that Trump’s desire to end the war was met with Iranian intransigence and a refusal to make substantial concessions regarding the nuclear program. Trump described the latest Iranian response as “absolutely unacceptable,” prompting him to reconsider resuming military action as a means of exerting pressure.
In the same vein, Israel’s Channel 12 quoted senior US officials as saying that Trump is seriously considering renewing military strikes to increase pressure on the Iranian regime. One official was quoted as saying, in a decisive tone, “Trump will hit them a little,” referring to the possibility of surgical strikes. These strikes would target vital facilities to force Tehran back to the negotiating table on Washington’s terms.
