The euro fell to $1.145, its lowest level since late July, as investors assessed Middle East developments and the U.S. dollar remained supported by expectations of further Federal Reserve rate hikes. Brent crude resumed declining after reports that Iran offered to reopen the Strait of Hormuz within seven days if Washington lifts its military blockade of Iranian ports. ECB’s Chief Economist Philip Lane warned that another surge in energy prices could keep Eurozone inflation elevated longer than policymakers initially expected, with inflation rising before declining toward the ECB’s 2% target from mid-2027. After this month’s second rate hike since the Iran war drove energy costs higher, ECB officials have begun preparing for further tightening. Inflation is expected to reach around 4% in coming months, compared with ECB projections of 3% this year and 2.5% next year.