CNN is reporting:

• Iran says negotiations with the U.S. have stalled, with senior adviser Mohsen Rezaei claiming President Trump must act to break the impasse.
• Iran is demanding the release of $24 billion in frozen assets as part of any agreement:
  • $12 billion upon signing an interim deal.
  • Another $12 billion at a later stage.
• Iran views the asset release as a trust-building test, arguing that unlocking the funds would demonstrate U.S. commitment to a lasting agreement.
• U.S. officials reportedly oppose releasing the funds at this stage, concerned that doing so would reduce a key source of leverage over Iran.
• Rezaei warned against a return to military conflict, stating that if fighting resumes, Iran could expand operations beyond the Persian Gulf.
• Potential areas of escalation mentioned by Iran include:
  • Strait of Hormuz
  • Indian Ocean
  • Bab al-Mandab Strait
  • Red Sea
  • Mediterranean Sea
• Iran threatened broader attacks on U.S. military assets if another conflict breaks out.
• Rezaei ruled out a meeting between President Trump and Supreme Leader Ayatollah Khamenei, saying the negotiations are currently in an early stage and have reached a standstill.

Market Implications

• The comments suggest peace negotiations remain fragile, reducing the likelihood of a near-term breakthrough.
• Any signs of renewed tensions could support higher oil prices due to concerns over disruptions to shipping routes and energy supplies in the Middle East.
• Traders will likely watch for any U.S. response regarding the frozen assets issue, which now appears to be a central sticking point in the negotiations

The current price of crude oil is trading at $90.75. That is down $-2.32 on the day.

This article was written by Greg Michalowski at investinglive.com.