‘Misplaced euphoria’: Markets are sleepwalking into a recession amid Iran war oil p...

Global markets are entering the week balancing resilient risk appetite against renewed geopolitical strain as prospects of U.S.-Iran negotiations took a hit over the weekend. U.S. President Donald Trump scrapped plans to send envoy Steve Witkoff and Jared Kushner to Islamabad for talks with Iran on Saturday, citing "tremendous infighting and confusion" within Tehran's leadership. Though uncertainty looms large, Iran has offered a new proposal to the U.S. for reopening the Strait of Hormuz and ending the war while suggesting that nuclear talks be deferred, Axios reported Monday, citing a U.S. official and two sources with knowledge of the matter. Signaling that attempts to secure a deal were still ongoing, Iran's Foreign Minister Abbas Araghchi made a brief return to Islamabad on Sunday as Pakistan's leaders push to revive talks between Tehran and Washington — though Trump said discussions could instead take place over the phone. Araghchi has reportedly departed Islamabad for Moscow. Amid lingering uncertainty over the critical energy waterway and the Iran war, oil prices inched higher Monday, reinforcing a persistent risk premium in energy markets. International benchmark Brent oil futures rose around 1% to $106.55 per barrel while U.S. crude oil added 0.88% to $95.23 per barrel. Goldman Sachs now expects oil prices to stay higher for longer, raising its Brent forecast to $90 a barrel by late 2026 from $80 previously, as disruptions in the Persian Gulf prove more persis