Market News

NEW YORK, Sept. 22, 2026 (Reuters) — The dollar rose in uneven trading on Tuesday, oscillating between gains and losses after hitting a two-month high earlier in the day, as volatile oil prices clouded the inflation outlook.

Oil prices settled about 1% lower, pulling back from earlier highs after U.S. President Donald Trump told reporters at the United Nations that U.S. officials had held a “very good” three-hour meeting with the Iranian delegation.

Crude prices had earlier fallen to a two-week low after Iran proposed reopening the Strait of Hormuz within seven days if the United States eases military pressure. Iran and the United States had also hinted at the possibility of reviving negotiations aimed at ending their conflict.

However, early optimism faded after Trump told the United Nations General Assembly that he believed the United States would reach a deal with Iran after the U.S. midterm elections in early November. The comments pushed both oil prices and the dollar higher.

“Obviously, the big bogeyman for everybody is inflation, but it's all been about why is there so much inflation?” said Juan Perez, senior director of trading at Monex USA in Washington.

Perez said the prolonged Iranian conflict and its escalation have been major drivers of inflation concerns, adding that this uncertainty was leaving the dollar without a clear direction.