The euro rose above $1.16, its highest since early June, as investors embraced riskier assets after the US and Iran agreed to end their three-month conflict. The deal, lifting the US blockade and reopening the Strait of Hormuz, will be signed in Switzerland on Friday, though uncertainty lingers as markets await further details and the status of Iran’s nuclear program remains unresolved. Oil prices plunged, easing inflationary pressures and reducing expectations for rate hikes. Money markets now anticipate about 30 basis points of further ECB tightening this year, equivalent to one rate hike, down from nearly two before last Thursday’s increase. ECB President Christine Lagarde welcomed the news but warned of past dashed hopes and emerging second-round effects from the conflict. ECB’s Joachim Nagel added that oil supply recovery would take months, delaying any inflation relief.