The US-Iran stalemate has entered a Cold War-like phase, with continued financial sanctions and maritime blockades. The US is concerned about being drawn into a frozen conflict, potentially requiring a prolonged military presence in the region. President Trump remains undecided on whether to launch new military strikes or wait for economic sanctions to yield results.
The US-Iran war is unlikely to end soon as neither side is hurting enough. Recent failed negotiations and both sides' hardline stances raise concerns about potential escalation. Negotiations are expected to remain limited due to the continued stalemate and inflexible positions of both parties.
The US-Iran stalemate continues to support the US dollar, with market attention focused on the Federal Reserve’s interest rate decision. Iran has proposed a new plan to reopen the Strait of Hormuz and end the war, but the offer is likely to be rejected by Washington. The Fed’s decision on interest rates will likely impact the dollar’s value.