Pakistan Claims Text of US-Iran Deal Is Final
Pakistan Prime Minister Shehbaz Sharif said the final text of the US-Iran peace deal has been agreed upon and Islamabad is now working with both sides to finalize the next steps. The statement is the strongest diplomatic signal yet that the war that has rocked global markets and disrupted the Strait of Hormuz could be nearing a cessation.
Sharif said "peace has never been closer," after the market was driven in recent days by Washington's rapid shift between military threats and claims of progress in negotiations. Pakistan is said to be playing an active mediating role in the process, while Qatar has also previously been involved in the diplomatic channel.
However, the market still needs to await official confirmation from Iran and the technical details of the agreement. Other reports suggest several issues remain sensitive, including the mechanism for opening the Strait of Hormuz, the release of frozen Iranian funds, and curbs on Tehran's nuclear program.
For the market, Pakistan's claim could reinforce the release of geopolitical risk premiums. If the deal is truly finalized, oil prices could remain depressed as the risk of Hormuz supply disruptions subsides. The US dollar could also lose some of its safe-haven support, while gold could fluctuate as markets weigh the dollar's weakness against the risk of lower energy inflation.
However, the full impact will only be seen after the signing and implementation on the ground. The next market focus will be Tehran's official response, the status of the blockade and shipping traffic in Hormuz, and details on whether this agreement merely paves the way for a temporary ceasefire or forms the basis for broader nuclear negotiations. (arl)
Source: Newsmaker.id
