Global markets are struggling for direction as speculation around a peace deal between the United States and Iran continues to cloud investor sentiment.
A draft memorandum of understanding between the two nations contains ambiguities that still need to be resolved, according to an adviser to Iran’s supreme leader.
The unresolved details are leaving traders cautious, with no clear timeline for when a formal agreement might be reached between Washington and Tehran.
Donald Trump has said he is seeking to reopen the Strait of Hormuz “immediately” after the memorandum was signed, a move that would have significant implications for global oil supply routes.
However, those close to the Iranian regime have told state media that the President wants to pressure Iran to accept his conditions and keep Tehran’s conditions in a vague state.
Iran’s Supreme Leader Mojtaba Khamenei, who has not been seen in public since being appointed in the role, issued a message warning that Iran’s enemies seek to “harm people’s resilience and create internal divisions.”
Trump was asked directly whether he would consider meeting with Khamenei, and the President acknowledged the leader might not be his “favourite person.”
“I don’t want to meet. But if I did meet, I’d be honoured to meet him,” Trump said on Thursday, leaving the door open to a potential diplomatic encounter.
“But if we make a deal, it’s possible that I would meet him. I’d be okay with that,” he added, signalling cautious openness to direct engagement.
Trump also said he was unsure whether he would host the supreme leader in the United States, but confirmed he would “be respectful” in any interaction.
The uncertainty surrounding the talks is feeding broader market volatility, as investors weigh the potential impact on energy prices and global trade flows.
Oil markets remain particularly sensitive to any developments, given the strategic importance of the Strait of Hormuz to international crude exports.
The FTSE 100 is expected to open on shaky ground as traders await clearer signals from ongoing diplomatic negotiations between Washington and Tehran.