US-Iran talks on Hormuz reopening lift dollar, oil trims gains

The dollar strengthened at the open as reports emerged of US-Iran talks to reopen the Strait of Hormuz within a week, prompting oil to give up 2% of its gains. The reopening would ease a major supply disruption, but the timeline and terms remain unconfirmed. Markets are pricing a reduced geopolitical risk premium, though the situation is fluid.