Pakistan is exploring a path toward a resumption of US - Iran talks. Oil moves lower

Key Points:

• Pakistan is reportedly working to revive U.S.-Iran diplomatic talks aimed at resolving the ongoing conflict, a development that has positively influenced market sentiment.
• U.S. stock indices, including the Dow Jones, S&P 500, and Nasdaq, have risen on the news, while crude oil prices have declined, approaching key technical support levels between $86.66 and $87.07.
• Diplomatic activity in the Middle East includes an Omani delegation visiting Tehran to discuss the Strait of Hormuz, but Iran has rejected a temporary ceasefire, linking any progress to its strategic demands in the region.
• Kuwait has intercepted hostile targets launched from Iran, highlighting the conflict’s expansion beyond Iran and Israel, while Iran maintains close consultations with Russia and China and vows to continue its campaign until its objectives are met.
• Despite ongoing diplomatic efforts, including Pakistan’s mediation attempts, meaningful progress toward de-escalation remains limited as Iran criticizes the U.S. approach and refuses to consider a ceasefire without its demands being addressed.