Trump Sets Condition to Avert Iran Conflict as Tehran Signals Diplomatic Preference

President Donald Trump issued a specific verbal ultimatum to Iran during his State of the Union address, stating that war can be averted if Tehran publicly pledges to never possess a nuclear weapon. While labeling Iran the world's primary sponsor of terrorism, the President expressed a clear preference for resolving the nuclear standoff through diplomatic channels. Iranian Foreign Minister Abbas Araghchi responded by emphasizing that Iran will not develop nuclear weapons under any circumstances, urging a return to prioritized diplomacy. The U.S. administration appears to be using this 'red line' rhetoric to pressure Tehran into a comprehensive new agreement regarding its nuclear capabilities and regional activities. Market reaction has been mixed, with heightened geopolitical risk premiums supporting Crude Oil and safe-haven assets like Gold (XAU/USD). However, the explicit mention of a potential deal by both sides has prevented a full-scale risk-off move in global financial markets.