Although a formal agreement has yet to be reached, investors believe the war between the US and Iran is heading toward an end. This is being clearly reflected in oil markets, where prices have fallen.
The cause was a statement by US President Donald Trump, who said that as long as talks to end the conflict continue, new attacks on Iran are very unlikely.
Warning against excessive expectations
Last week the price of Brent crude, one of the main international benchmarks for trading unrefined oil, had fallen by 16 percent.
However, analysts warn against excessive expectations. “Despite recent optimism about a possible diplomatic breakthrough, geopolitical risks remain high and the possibility of a new military escalation cannot be ruled out,” said Sugandha Sachdeva of SS WealthStreet.
No US-Iran agreement yet
According to analysts, markets are already reflecting the easing of tensions, although a comprehensive agreement between Washington and Tehran has yet to be reached.
According to US Secretary of State Marco Rubio, the negotiations have made very little progress. He recently described Iran’s demands as unacceptable and unrealistic./DW