The Mexican peso weakened to 17.3 per USD, returning to levels seen at the beginning of April as the analysis highlights a shift in direction for the USD/MXN pair, signaling that the currency’s recent strength has hit a ceiling. This reversal is a direct response to rising geopolitical risks following the US Navy’s seizure of an Iranian cargo ship, an event that has effectively stalled tanker traffic in the Hormuz chokepoint and triggered a broader move toward safe-haven assets. With crude prices jumping 4.8% to $87. and the US Dollar Index (DXY) climbing to 98, the peso is seeing a natural pullback as global investors pivot away from emerging market risk, erasing the progress made over the last two weeks while the market remains on high alert over the situation.