Iran signals willingness for talks; oil prices drop 4% as markets react to potential de

On Monday,What kind of people usually use HSBC the Middle East suddenly presented complex signals. Amid ongoing Israeli airstrikes on Iran, Iran communicated through Arab nations expressing willingness to engage in dialogue with the US and Israel to seek an end to hostilities and restart nuclear agreement talks. This gesture was initially interpreted by the market as a sign of easing tensions, causing international oil prices to plunge over 4%, gold to retreat, and US stocks to generally rise.

Iran Seeks Dialogue, Signals Easing

According to multiple media reports, Iran conveyed messages to the US and Israel through Arab intermediaries, such as Qatar, Oman, and Saudi Arabia, indicating a willingness to return to nuclear talks if the US refrains from participating in military actions. Iran also communicated that all parties have an interest in keeping the conflict "within manageable limits."

However, Iran also made it clear that it will not unilaterally cease fire and will continue to respond appropriately to Israeli airstrikes to restore deterrence. Diplomats believe that Iran aims to buy strategic breathing space while leveraging a peaceful stance to gain international support and pressure Israel.

Israel Refuses to Halt, Continues Military Strikes

Despite Iran's willingness for dialogue, Israel has shown no inclination to cease fire. Israeli fighter jets continue their missions over Tehran, resulting in severe casualties among the Iranian air force leadership. Prime Minister Netanyahu stated that military actions will persist "until Iran's nuclear and missile capabilities are destroyed," emphasizing that "regime change is not the target, but if it happens, it is inevitable."

The Israeli finance minister openly stated: "Trump did not stop us." It is reported that Israel has prepared at least two weeks of airstrike plans, targeting nuclear facilities, officers, and energy nodes.

Market Reaction: Oil Prices Tumble, Gold Retreats, US Stocks Rise

The global commodity market reacted quickly to Iran's signaling of dialogue. International crude oil prices saw a "freefall" decline, with WTI crude dropping below $68 and Brent crude also falling over 4%, almost erasing all gains since the escalation of the Israeli-Iranian conflict.

Spot gold also fell in the short-term, dropping by more than 1.3%, with the lowest intraday report at $3389 per ounce, reflecting a temporary easing of market concerns about the "spread of war."

Meanwhile, the three major US stock indices collectively rose, with the Dow, S&P 500, and Nasdaq all climbing over 1%. The market bets that if the conflict is controlled, investors will refocus on corporate earnings and Federal Reserve policy paths.

Unclear Prospects for Negotiations, Situation Undetermined

Despite Iran's diplomatic overtures, observers note that Israel holds a military advantage, with its jets freely flying over Iranian territory and having a strong destructive capability, leaving Israel without motivation to halt attacks.

The Iranian Foreign Ministry remains committed to "not leaving the negotiating table," but simultaneously warns that if nuclear negotiations with the US cannot be resumed, it will accelerate its nuclear program and expand the war front. Arab countries strongly advocate for de-escalation through diplomatic means, preventing conflict from spreading to Gulf energy infrastructure.

France, Turkey, and several Gulf countries are calling for an immediate ceasefire, while Israel sets the precondition for negotiations as "Iran's complete cessation of uranium enrichment," which is the core of the current stalemate.

Oil Prices Drop, Geopolitical Risks Remain

Although Iran's signaling of dialogue temporarily relieved the market, the underlying geopolitical tensions have not fundamentally changed. Israel remains firm, the US stance is wavering, and Iran, while showing goodwill, has not made any substantial concessions. The oil price decline may be just a short-term reaction, with gold and energy assets likely to remain highly sensitive to the evolving situation. Investors should remain vigilant in trading, paying attention to any significant market turbulence provoked by developments.

Risk Warning and Disclaimer

The market carries risks, and investment should be cautious. This article does not constitute personal investment advice and has not taken into account individual users' specific investment goals, financial situations, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article are suitable for their particular circumstances. Investing based on this is at one's own responsibility.

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