The Mexican peso experienced volatility in June and early July 2025 amid escalating tensions in the Middle East involving Iran and Israel, as well as concerns about potential U.S. intervention. The peso depreciated for three consecutive days, reaching 19.0731 pesos per U.S. dollar amid global nervousness. The Mexican Stock Exchange (BMV) also declined by 1.17% during this period. However, following a weekend U.S. surprise attack on Iranian nuclear facilities and subsequent Iranian retaliation, the peso saw slight gains, trading around 19.14 pesos per dollar. The currency strengthened further after Israel and Iran agreed to a ceasefire, with the peso returning to the 18-peso range per dollar and the BMV posting gains. In early July, the peso depreciated slightly by 0.2% after a seven-day streak of gains, closing at approximately 18.64 to 18.66 pesos per dollar. This depreciation occurred despite strong U.S. employment data that had earlier supported the peso's appreciation. Market participants also remained cautious due to possible tariff adjustments between Mexico and the United States. Year-to-date, the peso has appreciated by 10.3%, a trend noted as a concern for remittance-dependent populations. The peso's fluctuations reflect the interplay of geopolitical events, U.S. economic indicators, and trade policy uncertainties.