US-Iran Negotiations Stall on Nuclear and Financial Relief
Progress toward finalizing a deal to end the war between the United States and Iran reportedly slowed on Monday (May 25), according to the Wall Street Journal, citing mediators. This slowdown occurred amid differing views on Iran's nuclear program and Tehran's demands for financial relief as part of the deal.
The WSJ reported that the nuclear issue has again become a major obstacle in the talks, while the demand for financial relief is seen as sensitive because it directly affects the economic space and domestic legitimacy of both sides. The combination of these two issues has slowed the path to a final agreement as fast as market expectations after signs of progress emerged over the weekend.
On the domestic political front, President Donald Trump is also reportedly facing opposition from hard-line factions within his party. This group has expressed concerns that the deal risks leaving Iran's nuclear program intact while reducing financial pressure on the Iranian leadership, adding another layer of uncertainty to the ratification process and the final design of the agreement.
For the market, the slowdown in negotiations is keeping geopolitical risk premiums sticky, particularly in assets sensitive to energy supply disruptions and shifts in risk perception. The implication is that the decline in energy volatility and dollar weakness previously fueled by hopes of de-escalation could become less sustainable if these substantive obstacles persist.
The next variables to monitor are the details of the compromise regarding nuclear parameters, the form and scale of financial relief requested by Iran, and signals of domestic political support in the US, which will determine whether the agreement can progress from the principle stage to the signing stage. (Arl)
Source: Newsmaker.id
