Pakistan seeks to revive US-Iran dialogue as oil prices dip

Pakistan is reportedly trying to reopen diplomatic channels for U.S.-Iran talks aimed at ending the regional conflict, a development that has lifted risk sentiment in financial markets. U.S. stock indexes rose, with the Dow Jones Industrial Average gaining about 350 points (0.67%) to 52,063, the S&P 500 up 39 points (0.52%) to 7,447.13, and the Nasdaq hovering near 25,139 after earlier losses.

Crude oil continued its slide, trading around $88.25 per barrel, down nearly $4 on the day. Analysts note that the next technical support lies between $86.66 and $87.07, with a breach of the 100-hour moving average potentially shifting focus to the 200-hour average near $83.42.

In related regional news, an Omani delegation arrived in Tehran to discuss Strait of Hormuz issues, while Iran’s foreign minister, Abbas Araghchi, rejected any temporary ceasefire and said Tehran would not consider one without addressing its demands on the waterway. He added that Iran would not be swayed by U.S. pressure and that consultations with Russia and China continue.

"It is natural for discussions to take place with Pakistan regarding mediation initiatives," Araghchi said, adding that the obstacle to negotiations is the United States' approach.

Kuwait’s defense ministry reported interceptions of hostile projectiles launched from Iran, underscoring ongoing military tensions in the Gulf. While diplomatic overtures persist, the statements from Tehran indicate that substantial de-escalation remains unlikely.