Geneva Talk Failure Heightens Nuclear Escalation Risks in Russia-Ukraine Conflict

Trilateral negotiations in Geneva have concluded without resolving the fundamental territorial disputes between Russia and Ukraine, intensifying fears of further escalation. President Zelenskyy maintains a firm stance against ceding any territory, while Russia continues to demand recognition of its sovereignty over the Donbas region. Reports suggest that internal embezzlement scandals within Ukraine may incentivize certain officials to prolong the conflict to maintain legal immunity. The diplomatic deadlock, combined with strategic interests, significantly increases the risk of the conflict shifting toward a nuclear dimension. Financial markets are reacting with a 'risk-off' sentiment, driving investors toward safe-haven assets such as Gold and the US Dollar. This prolonged uncertainty is expected to weigh heavily on the EUR/USD pair and global equity markets as geopolitical tensions remain elevated.