The euro weakened against the U.S. dollar in Asian trading on Friday, and the euro/dollar exchange rate fell to around 1.1515. Rising concerns about the spread of the war involving the United States and the Iranian government, along with an increase in risk aversion in markets, have put pressure on the single European currency.

This trend intensified after Mohammad Bagher Qalibaf, the head of the Islamic Republic’s parliament, said that the United States “will pay the price for killing Iranian civilians.”

At the same time, Saudi Arabia and 13 other countries announced the formation of an alliance to protect shipping in the Bab al-Mandab Strait, the Red Sea, and the Gulf of Aden.

Despite this, markets have reduced the likelihood of an increase in U.S. interest rates in September following the recent Federal Reserve meeting; a factor that could, in the longer run, weigh on the dollar and support the euro, although in current trading geopolitical concerns are casting a shadow over the currency market.