The euro dipped below $1.17, retreating from a six-week peak of $1.174 reached on Friday, as prospects for a US-Iran peace deal dimmed. Negotiations in Pakistan collapsed after Tehran dismissed Washington’s demands, with both sides showing little willingness to resume talks. Adding to market unease, US President Donald Trump threatened a naval blockade of the Strait of Hormuz and suggested limited military strikes against Iran, despite an existing ceasefire. The strategic waterway’s significance sent oil prices skyrocketing, Brent crude climbed to around $102 per barrel, and led markets to anticipate a more aggressive stance from the European Central Bank, with traders now pricing in nearly three interest rate hikes by year-end, up from two just last week.