The euro steadied near $1.16 on growing hopes of de-escalation in the Middle East, after reports that Washington proposed a 15-point peace plan to Tehran following a potential one-month ceasefire. Iran dismissed the claims, stating it was not engaged in negotiations and reiterating its distrust of US diplomacy. Brent crude dipped below $100 a barrel, easing fears of inflation driven by soaring energy costs and leading investors to trim expectations for rate hikes. ECB President Christine Lagarde warned that while the central bank is assessing the economic impact of the conflict, it stands prepared to adjust policy "at any meeting" if the energy price surge risks fueling broader inflation. Markets now price in only two ECB rate increases by year-end, down from earlier forecasts of three.