Iran has firmly rejected President Donald Trump's assertion that the country is preparing to sign a deal with the United States this Sunday, dealing a blow to the optimistic timeline for resolving the ongoing diplomatic standoff.
The denial underscores the significant gap between Washington's public expectations and Tehran's actual negotiating position.
The rejection has kept geopolitical risk premiums active in energy markets.
With the prospect of a near-term diplomatic breakthrough fading, traders are maintaining exposure to potential supply disruptions rather than unwinding positions based on anticipated de-escalation.
The market is currently pricing in continued uncertainty rather than a swift resolution.
This development follows a week of intense diplomatic maneuvering and conflicting signals from both capitals.