EUR/USD slipped below the key 1.1500 level on Monday, retreating from recent highs as geopolitical risks drove demand for the US Dollar.

At the time of writing, EUR/USD is trading near 1.1481, with intraday losses nearing 0.70%

The move followed comments from US President Donald Trump, who called for Iran's "unconditional surrender" on Tuesday and warned Tehran to dismantle its nuclear program or face escalating consequences.

He praised Israeli airstrikes as "excellent" and "very successful," warning that future operations could be "even more brutal," and urged Tehran to "make a deal now" or face total defeat.

Speaking earlier aboard Air Force One after departing the G7 summit, Trump made clear he was not seeking a ceasefire but a "real end" to Iran's nuclear ambitions, saying, "They should have done the deal… I'm not too much in the mood to negotiate."

Earlier in the day, he called on civilians to "immediately evacuate Tehran," claiming that US and Israeli forces now had "complete and total control of the skies over Iran." In a pre-dawn statement, Trump revealed that the US knows where Iran's Supreme Leader is hiding but was "not going to take him out—at least not for now."

The day had started with a softer tone, as Trump expressed hope that "Israel and Iran can strike a deal," though he added that "sometimes countries have to fight it out first."

He also urged civilians to evacuate Tehran, signaling the potential for increased military action. These remarks rattled markets and spurred risk-off flows, prompting traders to favor the Dollar and weigh on the Euro despite otherwise supportive data from the Eurozone.

Source: Fxstreet