Summary
- Concerns over a wider military conflict are resurfacing as the chances of a US-Iran deal diminish.
- Markets are assessing whether a breakdown in talks would keep geopolitical risk elevated and prolong tensions around the Strait of Hormuz.
- That could raise the risk of energy supply disruptions and greater oil-price volatility.
Forecast Trend Report by Period
Concerns over a wider military conflict are resurfacing as the chances of a breakthrough in talks between the US and Iran diminish.
The Wall Street Journal reported on July 7 that officials involved in the negotiations see little chance of reaching an agreement by the deadline set by President Donald Trump. Focus is also shifting to the prospect that geopolitical risks would persist if the talks collapse.
The report said the gap between the two sides remains wide, making it difficult to narrow differences in the near term. Some US officials have become increasingly pessimistic about the chances for progress.
Iran also remains skeptical about the effectiveness of the talks, believing military action by the US and Israel would continue even if negotiations proceed.
Trump previously warned that key infrastructure, including bridges and power plants, could be targeted if Iran refuses to accept US demands.
Markets are weighing the possibility that a collapse in negotiations could lead to a broader military clash. Continued tensions around the Strait of Hormuz could disrupt energy supplies and increase oil-price volatility.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
