You could do an exterior mount Roman shade.

Hang one rod across the window…mount it about 3” higher and wider than the window.

Stack back the drapery panel(s) to the left of the window.

Judy how does she deal with the fireplace raised hearth? Just let it bunch there?

Here's an inside mount roller shade. Doesn't take up too much glass.

JudyG Designs thanks for the tip! How do I keep it from looking off center when I have the curtains all pulled to the left?

(Fyi I plan to whitewash the brick fireplace soon. So that should really lighten up the space to the right of the window...)

jn3344.. the panel does not hang to the right of the window, so it never bunches.

kim, the fabric panel, when hung on the left side of the window, balances the fireplace.

This idea:

Do a darker fabric ..all about balance.

Judy, I think jn3344 meant when the drapes are closed. Unless you mean they should be just decorative. When they're pulled across the window, the drapes will sort of bunch up over the fireplace, no? They won't hang flat.

If you want to do draperies, I think Option B (just below sill length) in this photo is your best choice to avoid bunching on the hearth. You could, of course, vary how high above the window the rod is hung.

Or hang Roman shades, like someone said above, like this (above the window trim) so that when they're pulled all the way up hardly any window is covered:

how about woven wood blinds? I've had them on my 8' window for awhile and love them. They're Bali from blinds.com. they have all type of colors. plus, they offer privacy, but let in light. And they roll all the way up so are out of the way when need be.

Ignore the dresser/rug. i was staging the dresser for a photo.

You could remodel that hearth and do away with the part near the window :)

I like the idea of hanging the panel on the left side of the window and just living with the weird drape over the mantel when they are closed.

But I think I would put up a ceiling height valence and do wood blinds. You can change the fabric of the valence as you wish to change the look and the wood blinds are gorgeous and give a room a nice feeling.if you are worried about the height of the blinds then do the top up/down honeycomb ones in a similar color to the walls to make them visually smaller. The window will still be the star of the show and the valence will be the supporting cast that draws the eye.

Hey There: I love the openness of your window and the view to the outside. Try to preserve this look while covering your windows. Our suggestion are minimalistic pleated blinds that operate bottom up and top down so you can manage privacy and light to your needs. Most important is that these blinds are only 1 inch in depth and install perfect as inside mount and do not cover your window casing. Check out
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Drapes tend to shrink the size of the room. I agree with Gordon's Window Decor, roller shades would be a lovely option as they can be rolled up to allow you to maintain the view when you like or they can be rolled down to provide privacy. This option helps you to maintain the grand appearance of the room and does not in any way affect the fireplace or its use.

Whitewashing fireplace will look great and woven shade or patterned roman blind would accessorize this window best IMO. Good luck.