LONDON — Financial markets were closely monitoring developments in negotiations between the United States and Iran on Sunday as officials from both countries signaled progress toward a framework agreement, while investors assessed potential implications for energy supplies, sanctions policy and global trade.
The focus remained on efforts to finalize a memorandum of understanding that U.S. President Donald Trump and other officials have said could pave the way for broader negotiations. Trump said on Sunday that the two sides were moving closer to an agreement, although the timing of any formal signing remained uncertain. Iranian officials also indicated that discussions were continuing and that additional review of the proposed framework was required.
According to a senior Iranian official, a draft agreement under discussion includes temporary waivers on U.S. oil sanctions, the release of frozen Iranian assets and commitments related to Iran’s nuclear activities while broader negotiations continue. The draft also outlines steps aimed at restoring commercial navigation through the Strait of Hormuz, a key route for global energy shipments.
Energy markets have been particularly sensitive to the negotiations because of the strategic importance of the Strait of Hormuz. Traders have been watching for signs that shipping flows could normalize if an agreement is reached. Market analysts said oil prices had eased in recent trading as expectations of reduced supply disruptions increased, though officials on both sides stressed that negotiations were not yet complete.
Financial markets also reacted to reports that the framework would establish a 60-day period for further discussions on unresolved issues, including Iran’s nuclear program. Iranian officials have said that no final nuclear agreement is included in the current memorandum and that those negotiations would continue separately if the framework is approved.
“The final points are still being reviewed,” Iranian officials said through state media and public statements cited by international news organizations, while U.S. officials maintained that meaningful progress had been made toward a broader settlement.
Investors were also weighing the potential impact of any sanctions relief on global oil supply and inflation trends. Analysts and market participants noted that uncertainty remained regarding implementation, regulatory approvals and the pace at which trade restrictions could be eased.
As of Sunday, no final agreement had been formally announced by either government. Negotiators continued discussions, and officials from both sides said further talks were expected in the coming days. Markets remained focused on whether a framework accord would be concluded and on the details of any measures affecting energy exports, financial transactions and regional shipping routes.
