Middle East Peace Talks Fuel Market Volatility
Global markets traded mixed this week amid ongoing peace talks in the Middle East, despite geopolitical tensions that escalated last week subsiding somewhat.
The lack of concrete results from the dialogue has fueled uncertainty and investor fears, with US President Donald Trump saying negotiations with Tehran resumed on Tuesday and were ongoing. He noted that Iran had made contradictory statements about the talks.
Trump stated that Washington is conducting talks with Tehran with support from Saudi Arabia, the United Arab Emirates, Qatar, and other countries, warning it's the last chance to make a good deal. He also mentioned preparing to launch one of the largest attacks since World War II unless Gulf countries called on him to stop.
Oil prices began climbing as tanker traffic through the Strait of Hormuz remained limited, complicating monetary policy expectations. The Fed maintained rates last week, with three members voting for a rate hike, reinforcing expectations that a hawkish move may come at the next meeting.