Diplomatic efforts between the United States and Iran have hit a roadblock after Hezbollah, a key Lebanese political and military group, rejected recent truce proposals.
This development comes amid ongoing discussions in Pakistan aimed at de-escalating tensions in the region.
The stalled negotiations have reignited worries about the potential for renewed conflict, particularly in the strategically vital Strait of Hormuz, a critical global energy transit route.
Markets have shown sensitivity to the geopolitical uncertainty, with energy and shipping sectors under pressure.
The Strait of Hormuz has been a focal point of recent volatility, with earlier reports indicating heightened shipping risks.
Investors are now recalibrating their expectations for regional stability and its impact on global trade flows.