US-Iran Sanctions Deal Impacts Dollar and Oil Prices Amid Ongoing Tensions

On May 18, 2026, reports emerged that the U.S. would waive sanctions on Iranian crude, leading to a decline in the dollar against major currencies. Oil prices fell as the market reacted to this news, while the U.S. Treasury yields also retreated from recent highs. The Iranian news indicated a long-term nuclear freeze agreement rather than complete dismantlement of facilities. Despite this, Metrobank's US-Iran Risk Index rose to 142.5, reflecting heightened market risks due to stalled negotiations. The dollar index dipped by 0.15%, while Brent Crude prices were reported at USD 109 per barrel. The geopolitical situation remains tense, with concerns over military escalation and inflationary pressures affecting global markets. Investors are closely monitoring the Federal Reserve's response to inflation, with expectations for potential interest rate hikes by January 2027. The overall sentiment in the market is cautious as the situation develops.

Key Points: • The U.S. plans to waive sanctions on Iranian crude, impacting oil prices and the dollar. • Metrobank's US-Iran Risk Index indicates increased market risk due to stalled negotiations. • Investors are concerned about inflation and potential interest rate hikes by the Federal Reserve.