Iranian Foreign Minister Abbas Araghchi has called for "true brotherhood" among Iran's neighbors, signaling a diplomatic push to ease regional tensions.
The remarks come as markets remain sensitive to geopolitical risks in the Middle East, particularly regarding the Strait of Hormuz.
Despite the conciliatory tone from Tehran, energy markets have not yet priced in a significant de-escalation.
Brent crude and other energy benchmarks continue to trade with a risk premium, reflecting ongoing concerns about potential shipping disruptions.
Traders are likely to view the diplomatic language with caution, waiting for concrete actions or verifiable changes in military posture before adjusting positions.
The call for regional unity follows recent statements from Iranian officials, including Defense Minister Amir Hatami, who advocated for a regional security belt across the Islamic world.