Global markets breathed a sigh of relief again when US President Donald Trump announced that a new military strike on Iran had been called off after significant progress was made in peace talks between the two countries. Crypto Market
The development sparked optimism that the conflict that has rocked the Middle East for the past few months may be nearing an end, thus reducing the risk of global energy supply disruptions.
Trump said a "big deal" was expected to be sealed in the near future and could be signed as early as this weekend in Europe. According to him, one of the main results of the negotiations was the reopening of the Strait of Hormuz, which is a vital route for world oil trade.
Previously, markets were concerned that the escalating tensions between Washington and Tehran could trigger greater disruptions to global crude oil shipments, thus pushing energy prices higher.
Trump also revealed that he had contacted several key leaders in the Middle East region including Saudi Arabia, the United Arab Emirates (UAE), Qatar, Bahrain and Kuwait to ensure the peace process goes smoothly.
However, the situation is not yet completely final.
Media outlets with close ties to the Iranian government reported that Tehran has not yet made a final decision on the deal, although the talks appear to be moving closer to reaching an agreement.
The differences in statements between Washington and Tehran have caused investors to remain cautious as any last-minute breakdown in talks could potentially reignite military tensions in the region.
However, the financial market reaction so far has clearly shown a more positive sentiment. Cryptomarkets
Wall Street surged after Trump announced the cancellation of the attack, with major US indices recording significant gains as investors began to reduce concerns about geopolitical risks.
Market attention is now focused on whether Iran will actually sign the deal in the coming days or whether the Middle East peace talks will once again end without any final solution.
