President Trump cancelled planned US envoy mission to Pakistan, halting diplomatic push on Iran after a "substandard" Tehran proposal.
Iran later submitted a secondary, more promising offer addressing nuclear concerns, but mutual distrust keeps formal negotiations blocked.
The stalemate has paralyzed the Strait of Hormuz, affecting roughly 20% of oil transit and sustaining multi‑year high oil prices, fueling inflation.
Investors warn the “war premium” in energy and shipping markets will persist, keeping market volatility elevated amid ongoing regional conflicts.