The euro stabilized around $1.16 as investors looked ahead to the European Central Bank’s policy meeting later this week, while rising oil prices added to inflation concerns. Brent crude climbed to a fresh six-week high amid renewed US-Iran fighting and reports that Iran and Oman were nearing an agreement to manage shipping through the Strait of Hormuz, raising concerns over Tehran’s growing control of the key waterway. Persistent inflation pressures and resilient economic growth are keeping central banks under pressure to maintain a restrictive policy stance. The ECB is widely expected to raise interest rates on Thursday, with markets almost fully pricing in another hike by year-end. In the US, investors are awaiting key inflation data later this week, after Friday’s strong jobs report lifted the probability of a Fed rate hike next week to nearly 60%, providing further support for the dollar.