Israel has formally registered strong opposition to a newly proposed peace framework between the United States and Iran, casting immediate doubt on the durability of the diplomatic breakthrough.
The reaction from Jerusalem underscores the fragility of the agreement and suggests that the path to de-escalation in the Middle East remains fraught with political obstacles.
The development comes as markets continue to price in the lingering risks associated with the region's geopolitical instability.
While the proposed deal between Washington and Tehran was intended to reduce tensions, Israel's stance indicates that the security concerns driving regional volatility are far from resolved.
Investors are likely to remain cautious, with risk premiums in energy and defense sectors likely to persist until a more inclusive diplomatic solution emerges.
According to reports from Handelsblatt and other media outlets, the US-Iran agreement is viewed by some in Washington as a potential misstep that could weaken American influence in the Middle East and strain relations with Israel.