Tehran suspends negotiations with Washington until January 20, 2029, escalating geopolitical risks for oil markets and USD/JPY volatility.
Iran announced it will not negotiate with the US until President Donald Trump’s term ends on January 20, 2029, derailing efforts to ease Middle East tensions. The decision, confirmed by an adviser to Parliament Speaker Mohammad Bagher Ghalibaf, reinforces oil supply risks as the Strait of Hormuz remains a flashpoint.
Analysts at TD Securities noted that a Hormuz deal is now elusive, with ongoing Houthi attacks on Saudi infrastructure and Ukrainian strikes on Russian exports sustaining geopolitical risk premiums. The US Dollar strengthened against the Japanese Yen amid the uncertainty, reflecting safe-haven demand.
Markets are pricing in prolonged instability, with energy flows via critical chokepoints like Hormuz and Bab el-Mandeb under persistent threat. The standoff adds to existing supply constraints, keeping upward pressure on oil prices.