The euro traded near its strongest level in three months on Monday, reaching $1.0912 from $1.0850 a week earlier, as investors assessed the prospect of new US sanctions on Iran. The potential measures could disrupt global oil supplies, lift energy prices and alter capital flows, while also adding a geopolitical risk premium to the euro. Expectations that the Federal Reserve may cut interest rates sooner than the ECB (European Central Bank) have reduced the dollar’s yield advantage, while the ECB’s more cautious approach to easing has kept eurozone yields relatively attractive. A stronger euro could lower the cost of imported goods and services and ease inflation, but it may also hurt exporters by making their products more expensive overseas. No formal sanctions have been confirmed, but investors are watching Washington, central-bank communications and economic data from the US and eurozone for signals that could move currencies and broader financial markets.