AUD/USD fell below 0.71, down 0.58% intraday.

South Korea summons Iranian ambassador on May 27 over suspected early-May missile strike on South Korean vessel in the Strait of Hormuz; Iranian envoy denies involvement

Gold slid to a two-month low as a stalled U.S.-Iran situation coincided with rising Fed hawkish risk. Markets had priced an imminent deal and reopening of the Strait of Hormuz, but there is no official confirmation—only noise and rumors. Limited reciprocal strikes occurred recently while the U.S. says the ceasefire still holds. A growing number of Fed policymakers favor abandoning dovish leanings, increasing the odds of a hawkish outcome at the June FOMC. If tensions remain unchanged, persistent inf and resilient U.S. data raise the risk of a hawkish surprise. Near term, resolution and Strait reopening would likely push oil lower and revive easing/cut expectations, supporting gold; prolonged closure and sustained high oil would increase pressure for Fed tightening, weighing on bullion.