US Vice President JD Vance has characterized the emerging framework for a potential peace deal with Iran as a brief, one-and-a-half-page document that is "very general" in its scope.
The remarks, reported by Axios and Handelsblatt, highlight the significant distance between the initial diplomatic overtures and a finalized, binding agreement, even as markets continue to price in the prospect of sanctions relief.
The diplomatic friction comes as equity markets in Europe and the US have rallied on the back of hopes that a de-escalation in the Middle East will remove a major overhang on global growth and energy supplies.
The DAX in Germany posted gains, reflecting investor appetite for risk assets as the prospect of a ceasefire gains traction.
However, Vance's comments serve as a stark reminder that the current market optimism is built on a fragile foundation of preliminary communications rather than concrete policy shifts.
According to reports, Iran's foreign minister has confirmed that Tehran has received communications from US authorities expressing a desire to continue discussions on a potential peace resolution.