Iran has declared negotiations with the United States "impossible" following an Israeli airstrike in southern Beirut that killed three people, effectively freezing the diplomatic track just as both sides were in the final stages of a potential nuclear agreement.
The attack, which Israel said targeted Hezbollah-linked infrastructure, has triggered a sharp repricing of Middle East risk.
The diplomatic breakdown removes a key off-ramp for regional tensions, raising the probability of a broader conflict that could disrupt shipping routes and energy flows.
a higher geopolitical risk premium across energy and freight sectors.
Traders are monitoring whether the strike marks a permanent rupture in US-Iran talks or a temporary pause, with any escalation likely to weigh on risk assets and support safe-haven demand.