Dollar slides on report US and Iran extend 60‑day ceasefire deal

Reports on May 28, 2026 indicate U.S. and Iranian negotiators have agreed on a memorandum to extend the current ceasefire by 60 days and open talks on Iran’s nuclear programme, though the deal still awaits final approval from U.S. President Donald Trump. The news triggered a fall in the U.S. dollar as investors scaled back haven positions.

According to Axios and Associated Press reporting, the draft memorandum of understanding would sustain the fragile truce and provide a 60‑day window to pursue broader negotiations; sources stressed the agreement is conditional on senior leadership sign‑off and Tehran had not immediately confirmed acceptance. Market participants treated the reports as tentative progress in diplomacy rather than a completed treaty.

Market reaction was swift: the dollar weakened against major peers and U.S. Treasury yields eased, while U.S. equity indices saw gains as risk appetite improved. Reuters‑sourced market wires noted a decline in benchmark yields and commentary from traders that the ceasefire news trimmed geopolitical risk premia. Oil benchmarks also pulled back on hopes of reduced supply disruption risk, and safe‑haven flows into gold showed a mixed response amid a softer dollar.

In a broader context, any extension of the truce that reduces tensions around the Strait of Hormuz would likely relieve a key source of energy market risk and dampen volatility in commodity and currency markets. However, the provisional nature of the reports and the political step of securing presidential approval mean markets may reprice rapidly should details change or confirmation fail to materialize.

Analysts warn that while a confirmed ceasefire extension could sustain a softer dollar and firmer risk assets in the near term, central bank policy expectations—especially for the Federal Reserve—and incoming macroeconomic data remain dominant drivers for medium‑term currency and bond moves. Traders will watch official confirmations, oil flows through regional chokepoints, and any statements from Washington or Tehran for signals on durability.