Trump Says Iran War 'Close to Ending' Sparking Hope for New Talks

President Donald Trump on April 14 said that US military action against Iran is “close to ending,” a statement that could signal a de-escalation of tensions and pave the way for new negotiations between the two countries.

"I think it's close to the end. Yes, I mean, I think we're very close to the end," Trump said in an interview with Fox News. He added that he believes Iran is "desperate" to make a deal.

The comments come just days after a round of face-to-face talks between US and Iranian delegations in Islamabad, Pakistan, on April 11-12 ended without an agreement. A potential de-escalation would likely reduce geopolitical risk premiums, leading to a potential drop in oil prices and a rally in global equity markets.

A second round of talks could take place in Pakistan in the next two days, with Vice President Vance expected to lead the US delegation again. However, Vance has cautioned that "it's not going to be something that gets solved overnight" due to a significant lack of trust between the two sides.

Failed Talks and Lingering Distrust

The previous negotiations in Islamabad were described by the Iranian side as being held in an "atmosphere of distrust and suspicion," with disagreements on two or three key issues. The US stated it had made its "red lines" very clear, but that Iran was not willing to accept the American conditions.

Trump also defended his administration's military actions against Iran, claiming that without them, "Iran would have nuclear weapons by now."

The path to any potential deal remains fraught with challenges. The failure of the recent talks highlights the deep divisions that persist. While the prospect of renewed dialogue is a positive sign for markets, the outcome is far from certain. Investors will be closely watching for any concrete developments from the potential meeting in Pakistan.

This article is for informational purposes only and does not constitute investment advice.