Negotiations between the United States and Iran in Switzerland have hit a fresh snag after President Donald Trump demanded that Tehran exert pressure on Hezbollah in Lebanon.
The US administration warned of renewed military action if Iran fails to restrain its Lebanese allies, a condition that Iranian officials have dismissed as an "insulting message."
The diplomatic standoff complicates efforts to finalize a framework deal aimed at ending hostilities and unfreezing assets.
With the US insisting on broader regional security guarantees beyond bilateral issues, the path to a comprehensive agreement appears increasingly narrow.
This development follows President Trump's earlier declaration that American forces were prepared to strike Iran, a statement that significantly heightened tensions in the region.
For markets, the failure to secure a swift resolution maintains the geopolitical risk premium embedded in energy and shipping prices.
Investors remain wary of potential escalation, particularly given the history of rapid shifts in the diplomatic posture.