Iran Rejects Compromise on MoU as US-Iran Tensions Persist

Pezeshkian's hardline posture leaves little room for the diplomatic off-ramp that some market participants had hoped for. "We are not going to bow our heads," he said. The remarks suggest Iran will not make further concessions, even as economic pressure mounts from US sanctions and a depreciating rial.

For equity markets, the risk is concentrated in energy stocks and broader indices. The S&P 500 fell 0.3% in early trading, with energy the only sector in the green. Safe-haven assets – gold and the dollar – edged higher. Gold traded near $2,540 an ounce, up 0.6%.

The next concrete marker is the UN General Assembly later this month, where US and Iranian diplomats may meet. Until then, the risk premium in oil and the rial is likely to stay elevated, currency traders said.