Strait of Hormuz Tensions Rise as EUR/USD and GBP/USD Test Key Support

Fresh headlines that the Strait of Hormuz has been shut again, along with reports of a seized Iranian cargo ship and renewed threats from Donald Trump, have increased geopolitical tensions and added pressure on EUR/USD and GBP/USD. Higher oil prices are negative for both Europe and the UK because they are major energy importers, raising risks to growth.

Despite this, market reactions remain limited as traders expect possible sudden policy or negotiation updates, which have repeatedly reversed early Monday moves in recent weeks. Reports of talks continuing and financial support discussions involving the United Arab Emirates have also helped cap strong US dollar gains.

Technically, EUR/USD is testing 1.1742 support, with immediate support near 1.1714, with 1.1675 as the next key downside level. On the upside, 1.1825 and the next 1.1850 remain as important resistance if sentiment improves again. Momentum indicators are still slightly bullish but starting to weaken.

EUR/USD Daily Chart

GBP/USD is holding near 1.3480 support after repeated rejection at 1.3590 resistance. Below this, support sits between 1.3449 and 1.3413 (also 200 DMA), while a move back above 1.3590 could open the path toward 1.3700 to 1.3749.

GBP/USD Daily Chart

Overall, rising geopolitical tensions around Hormuz are increasing uncertainty, but price action remains headline-driven, with traders watching key technical levels closely for direction.