Tehran is preparing to submit a formal proposal aimed at meeting United States expectations, according to President Donald Trump, who confirmed the development during a phone interview with Reuters.
The move marks a significant shift in diplomatic posture, suggesting that Iran is seeking a negotiated path to resolve the ongoing tensions that have disrupted regional stability and global energy flows.
The potential for a diplomatic breakthrough has immediate implications for risk sentiment.
While the announcement itself is a political development, the market reaction reflects the underlying anxiety over how such a proposal will be received in Washington and whether it will lead to a tangible de-escalation of hostilities.
Investors are currently pricing in a wide range of outcomes, from a swift resolution to a protracted period of uncertainty as details of the proposal are scrutinized.
This diplomatic maneuver comes against a backdrop of significant economic headwinds for Europe.