The Gulf countries on Monday welcomed a peace deal reached between the US and Iran to end their conflict and called for protection of maritime routes and freedom of international navigation, including the uninterrupted flow of traffic through the Strait of Hormuz.
The Indian rupee depreciated by 28 paise to settle at 93.44 against the US dollar, influenced by ongoing uncertainties surrounding West Asia peace negotiations, volatile crude oil prices, and the Reserve Bank of India's recent adjustments to non-deliverable forward market regulations.
The United States and Iran are engaged in indirect talks aimed at developing a framework for a possible agreement, according to Iran's ISNA News Agency. Intensive mediation efforts are underway, but it remains uncertain whether a final agreement is within reach.
US President Donald Trump has dismissed media reports suggesting that diplomatic negotiations between Washington and Tehran have stalled, maintaining that dialogue persists despite intensifying geopolitical friction across the Middle East.
Pakistan has increased security measures in Islamabad and surrounding areas as the US and Iran prepare for another round of peace talks. The move follows an announcement by former US President Donald Trump that American negotiators would be in Pakistan for discussions aimed at resolving the conflict between the two nations.
'Actual implementation of the 14-point agreement is proving hard to achieve let alone striking and sustaining a long-term treaty or deal.'
US Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araghchi are reportedly heading to Switzerland for a new round of US-Iran negotiations, following a recently announced memorandum of understanding to end hostilities in West Asia and a ceasefire between Israel and Hezbollah.
A high-stakes memorandum for a 60-day ceasefire between the United States and Iran is in its final stages, with negotiators working to close remaining gaps and avert further escalation in the region, including reopening of the Strait of Hormuz and the resumption of Iranian oil sales, according to an Axios report citing US officials.
Direct talks between the US and Iran, mediated by Pakistan, have failed to produce an agreement after 21 hours of negotiations, with disagreements over Iran's nuclear ambitions and sanctions proving insurmountable.
The United States and Iran could resume negotiations as early as next week in Islamabad, according to a report by The Wall Street Journal citing people familiar with the matter.
India significantly increased its crude oil imports from Russia and the United Arab Emirates in June, securing supplies as the Strait of Hormuz began to reopen, with Russian barrels remaining attractive due to discounts and UAE supplies offsetting earlier uncertainties.
The meeting follows a ceasefire agreement that was announced and welcomed by Shehbaz Sharif, who also extended invitations to both delegations for further negotiations.
Crude oil prices reached a new record high in futures trade, both domestically and internationally, as escalating military tensions between the US and Iran in West Asia continue to fuel market volatility. Diplomatic efforts concerning the Strait of Hormuz are being closely watched for potential price stabilisation.
Indian markets on Dalal Street rallied sharply as easing tensions in the US-Iran conflict and stable oil prices boosted sentiment. Track Nifty 50 and BSE Sensex performance and key global triggers.
US President Donald Trump indicated that a peace deal with Iran is possible, but stressed that military action remains an option if talks fail. He emphasised the need for guarantees against nuclear weapons in any agreement.
Iranian President Masoud Pezeshkian is on a state visit to Pakistan to discuss the full implementation of an agreement signed between Iran and the US, alongside regional and international developments. The visit also aims to strengthen bilateral cooperation across various sectors, following recent high-level talks between the US and Iran in Switzerland regarding regional security.
Crude oil prices experienced a significant drop following the announcement of a US-Iran ceasefire and the reopening of the Strait of Hormuz, leading to heavy selling by traders.
Pakistan is playing a key role in facilitating talks between the US and Iran, but the future of these negotiations remains uncertain. Despite ongoing diplomatic efforts, no dates have been set for a second round of discussions.
Indian benchmark indices Sensex and Nifty rallied in early trade, driven by a positive trend in global markets, cooling crude oil prices following a US-Iran peace deal, and fresh foreign fund inflows.
India's exports reached a six-month high, growing by 18 per cent to USD 45.2 billion in May, driven by electronic goods, petroleum products, engineering items, and pharmaceuticals. However, the trade deficit widened to USD 28.21 billion due to a 10 per cent rise in imports, particularly petroleum products and gold, amidst surging crude oil prices.
Indian benchmark indices Sensex and Nifty recovered early losses to trade higher, supported by encouraging developments on the geopolitical front, specifically the US-Iran peace deal, and easing crude oil prices.
A US-Iran memorandum of understanding is set to be signed, outlining sanctions relief, the reopening of the Strait of Hormuz, and a 60-day negotiation window for Iran's uranium enrichment, but US President Donald Trump has underscored the deal's conditional nature, warning of military action if Tehran fails to comply.
Analysts predict that inflation data, the US Federal Reserve's interest rate decision, and crude oil price trends will be the primary factors influencing the movement of Indian stock markets. Geopolitical developments, particularly the US-Iran deal, and foreign investor activity will also play a crucial role.
Talks between Iran and the US in Pakistan concluded without a deal due to disagreements over key issues, including Iran's nuclear programme and sanctions, despite efforts to find common ground.
As the negotiations continued, the Iranian government said on social media that "talks between Iran and the US in Islamabad entered the expert-level stage as economic, military, legal, and nuclear committees joined in".
Pakistan's Chief of Defence Forces Field Marshal Asim Munir held talks with Iranian leaders in Tehran to help resolve the conflict between the US and Iran, following a recent ceasefire agreement.
Gold prices surged in futures trading due to escalating US-Iran tensions, driving demand for the safe-haven asset.
At the Iran-Belgium FIFA World Cup match, least one attendee wearing a pre-revolutionary flag shirt was detained for trying to run onto the pitch and Iranian player Alireza Jahanbakhsh said after the match that he doesn't want to keep focusing on the challenging situations faced by his team.
Ten-man Belgium dominated possession but could not break down a disciplined Iranian defence, with goalkeeper Alireza Beiranvand producing a string of saves to preserve the result in the Group G encounter.
US Vice President J D Vance is currently in Switzerland, leading critical technical talks with Iran to advance diplomatic efforts on Iran's nuclear programme and secure a lasting ceasefire in Lebanon, following a recently signed memorandum of understanding aimed at de-escalating West Asian hostilities.
US President Donald Trump said on Wednesday that Washington is considering a "joint venture" with Iran to secure the Strait of Hormuz, following his announcement of a two-week ceasefire.
Iran has restored access to a significant portion of its underground missile infrastructure following months of excavation and repair work, highlighting the limits of US bombing strategy.
Iran twice came from behind to earn a 2-2 draw with New Zealand in their opening World Cup match on Monday after an end-to-end contest played against the backdrop of Iranian fan protests against the government in Tehran.
The ceasefire is still technically holding, to the extent that no overt hostilities have been reported yet, but the rhetoric has hardened dangerously. The week ahead will also clarify whether the Islamabad failure was a negotiating tactic or whether Washington has genuinely locked itself into a position from which the only exits are climb-down, escalation, or the slow bleed of a new status quo that nobody chose and nobody controls. Prem Panicker continues his must read blog on the Iran War.
Pakistan has announced its commitment to continue facilitating talks between the United States and Iran, urging both nations to uphold the ceasefire agreement. Deputy Prime Minister Ishaq Dar highlighted Pakistan's role in mediating recent discussions and expressed hope for durable peace and regional stability.
Prime Minister Narendra Modi has called for a swift end to the conflicts in West Asia and Ukraine, emphasising the importance of dialogue and diplomacy. He made the remarks after talks with Finnish President Alexander Stubb, where they also agreed to a strategic partnership in digitalisation and sustainability.
Crude oil prices are projected to fall significantly this year, driven by hopes of a peace deal between the US and Iran, which could lead to the reopening of the Strait of Hormuz, and a notable drop in Chinese demand for seaborne crude imports.
A US military Apache attack helicopter crashed near the Strait of Hormuz, with its crew successfully rescued, as US President Donald Trump confidently declared an imminent 'total victory' over Iran within two weeks and a new nuclear deal, despite ongoing regional volatility and a recent de-escalation between Iran and Israel.
Foreign Portfolio Investors (FPIs) have withdrawn over Rs 62,853 crore from Indian equities in the first fortnight of June, bringing the total outflows for 2026 to Rs 2.87 lakh crore, surpassing the entire 2025 figure, driven by geopolitical tensions, global economic growth concerns, and a weakening rupee.
The United States and Iran, with regional mediators, are reportedly discussing a potential 45-day ceasefire to prevent further escalation of conflict, including strikes on Iranian infrastructure and retaliation against Gulf states' facilities.
