Strait of Hormuz Reopens as Oil Falls and EUR/USD Breaks Higher

Recent headlines from Abbas Araghchi (Iran's foreign minister) and Donald Trump confirmed that the Strait of Hormuz is open for commercial passage, easing fears of energy supply disruption. This helped push WTI crude oil down more than 7% toward the $80 area, improving global risk sentiment and supporting equity markets.

Lower oil prices weakened the US dollar and supported EUR/USD, which has now broken above the key resistance at 1.1825, continuing the bullish move that started after optimism around a possible US–Iran deal. Earlier resistance at 1.1740 remains an important support level, while 1.1925 is the next upside target if upside strength continues.

EUR/USD Daily Chart

From the crude oil side, the price is now in a transition zone. Support sits at $78 and $74, and a break below could open the path toward $67. On the upside, recovery above $88, $93, and $110 would restore bullish momentum toward $118 if geopolitical tensions return.

Overall, easing tensions around Strait of Hormuz are lowering oil prices, improving risk sentiment, weakening the dollar, and supporting EUR/USD strength