Euro falls against the dollar amid Middle East crisis

The euro remained lower on Friday, depreciating 0.35% to $1.1629, weighed down by a lack of agreement over the war in Iran and by prospects for the reopening of the Strait of Hormuz, while oil prices continue to rise.

The euro was trading at $1.1629 around 3:00 PM GMT, compared to $1.1680 the previous day.

Meanwhile, the European Central Bank (ECB) set the euro’s reference exchange rate at $1.1628, down from $1.1702 the previous day.

The euro was weighed down on the last day of the week by the geopolitical situation, marked by the stagnation of negotiations to end the war in Iran and the failure to reopen the Strait of Hormuz.

It is estimated that 25% of the world market’s hydrocarbon flow passed through this strategic passage before the start of the US and Israeli bombings against Iran and Tehran’s retaliatory actions in the Middle East.

The price of Brent crude, the European benchmark, rose well above $100 a barrel on Friday, and the euro lost value against the greenback.

The price of Brent crude rose by more than 3% this Friday and traded above $109 a barrel.

At 8:30 GMT, the price of Brent crude for July delivery was up 3.41%, to $109.31 in the London futures market.

Last Monday, the euro had risen to almost $1.18, but since then the decline against the dollar has been steady, reaching $1.1629 this Friday.