Dollar Slips as Markets Bet on Continued Iran Negotiations Despite Hormuz Blockade

The U.S. dollar fell Monday, April 13, 2026, as safe-haven demand faded and investors rotated into risk assets, betting that U.S.-Iran negotiations remain alive despite President Trump's announcement of a naval blockade of the Strait of Hormuz. The Dollar Index (DXY) declined 0.3% to 98.37 in late New York trading. Trump confirmed the blockade took effect at 10:00 a.m. ET, targeting all vessels entering or exiting Iranian ports and coastal waters. Oil prices initially surged on the news before paring gains after Trump noted 34 ships transited the strait Sunday — which he called a record since the blockade began. The strait carries roughly one-fifth of global oil and gas shipments, raising concerns over inflationary supply disruptions. Major currency pairs reflected the dollar's retreat: EUR/USD rose 0.3% to $1.1759, GBP/USD gained 0.3% to $1.3505, while USD/JPY edged up 0.1% to ¥159.41. Bank of Japan Governor Kazuo Ueda said the economy is broadly on track but flagged close monitoring of war-related economic risks.