Iran has signaled that peace negotiations with the United States are no longer viable following a fresh escalation of Israeli military operations in Lebanon.
The development comes as Washington intensifies pressure on Tehran to finalize a diplomatic agreement by this Sunday, coinciding with Donald Trump’s 80th birthday.
The push for a rapid resolution has collided with renewed hostilities on the ground.
Israeli strikes targeting military infrastructure in Lebanon have reignited fears of a broader regional conflict, prompting Iranian officials to publicly question the utility of continuing talks while combat operations persist.
The diplomatic stalemate introduces fresh uncertainty into an already fragile geopolitical landscape.
Markets are for potential spillover effects on energy supplies, shipping routes, and risk sentiment across European and US equities.