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US Vice President JD Vance has announced that the United States has made significant progress in diplomatic negotiations with Iran, signaling a potential de-escalation of regional tensions. These remarks follow a period of intense military friction and threats, occurring as the Trump administration's deadline for a ceasefire and nuclear deal approaches. This diplomatic breakthrough is expected to lower the immediate risk of a full-scale conflict and potential disruptions to the Strait of Hormuz, boosting overall market sentiment. However, the impact remains moderate as negotiations have spanned 19 days and have previously been met with contradictory signals. Investors are now closely monitoring Crude Oil and Gold (XAU/USD) prices to gauge the sustainability of this diplomatic thaw. The markets remain attentive to concrete outcomes that could lead to long-term stability in the Middle East.
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