Dollar falls in broad risk rally after Trump announces Israel-Iran ceasefire

The dollar fell on Tuesday while the Australian and New Zealand dollars rose after U.S. President Donald Trump announced a ceasefire between Israel and Iran, in news that sent investors cheering and sparked a risk rally across markets.

Trump said that a "complete and total" ceasefire between Israel and Iran will go into force with a view to ending the 12-day conflict between the two nations, moments after both sides threatened new attacks.

An Iranian and Qatari official confirmed that Tehran had agreed to a ceasefire, while Israel's Channel 12 reported that Prime Minister Benjamin Netanyahu had agreed in a conversation with Trump to a ceasefire as long as Iran stopped its attacks.

The risk-sensitive Aussie got a lift from the news and last traded 0.35% higher at $0.6483 as did the kiwi , which rose 0.37% to $0.5998.

"It's obviously positive news for risk sentiment," said Rodrigo Catril, senior currency strategist at National Australia Bank.

"We need to obviously have a bit more details in terms of exactly what all this means... I suppose it will be the conditions of the ceasefire, and what are the conditions for a more longer-lasting peace deal."

The dollar, which last week drew support from safe-haven demand, fell broadly in the wake of the news.

Against the yen, the greenback was down 0.21% at 145.79 .

The euro rose 0.21% to $1.1602 and sterling advanced 0.18% to $1.3551.

Oil prices fall more than 6% after Iran attacks US military base

Oil prices sank more than six percent Monday after Iran attacked a US military base in neighboring Qatar in retaliation for US weekend strikes on Iranian nuclear facilities.

Near 1815 GMT, futures for West Texas Intermediate fell 6.5 percent to $69.96 a barrel, while Brent oil futures dropped 6.4 percent to $72.07 a barrel, its lowest level in 10 days.

A US defense official said there were no known American casualties from the incident, which analysts said did not appear to be near key oil infrastructure.

John Kilduff of Again Capital described the Iranian action as "somewhat measured" and apart from population centers.

"This is a face-saving measure by the Iranians and hopefully the diplomatic off-ramp will be taken," Kilduff said.

The Iran-Israel clash has focused worry on the Strait of Hormuz, a strategic waterway for seaborne oil that has long been used by Iran as a geopolitical bargaining chip.

Tehran has for decades threatened to close the strait every time tensions soared, but never acted on its warning.

But Kilduff said, "it's pretty clear that this is not going to turn into -- right away at least -- any kind of impact on oil flows in the region, particularly the Strait of Hormuz."