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Iran confirms US negotiations, says ceasefire hinges on finalising 10-point proposal

An Iranian official stated that it has accepted a two-week ceasefire after US President Donald Trump said he would suspend attacks, subject to Tehran agreeing to fully reopen the Strait of Hormuz.

Iran added that negotiations with the US will be held in Islamabad, Pakistan, to finalize details, aiming to confirm Iran’s battlefield achievements politically within a maximum of 15 days. Discussions will begin on Friday and may be extended if both sides agree.

Additional takeaways

Negotiations with US will be held in Islamabad, Pakistan to finalize details, aiming to confirm Iran’s battlefield achievements politically within a maximum of 15 days.

Discussions will begin Friday, April 10th and may be extended if both sides agree.

10-point proposal included controlled transit through the Strait of Hormuz coordinated with Iranian armed forces, ending war against Iran and allied groups, withdrawal of US combat forces from all regional bases. 

Talks with US do not mean end of war. 

Will only accept war conclusion once details are finalised according to the 10-point plan. 

10-point proposal included lifting all primary and secondary sanctions, payment of full compensation to Iran and release of all frozen Iranian assets. 

Additionally, Iran’s Supreme National Security Council said that the ten-point proposal sent to the United States included a condition that Iran would continue its enrichment of Uranium.

Market reaction

The US Dollar Index is down 0.70% on the day at around 99.00 and WTI has lost nearly 11% so far amid the US-Iran two-week ceasefire.

Risk sentiment FAQs

In the world of financial jargon the two widely used terms “risk-on” and “risk off'' refer to the level of risk that investors are willing to stomach during the period referenced. In a “risk-on” market, investors are optimistic about the future and more willing to buy risky assets. In a “risk-off” market investors start to ‘play it safe’ because they are worried about the future, and therefore buy less risky assets that are more certain of bringing a return, even if it is relatively modest.

Typically, during periods of “risk-on”, stock markets will rise, most commodities – except Gold – will also gain in value, since they benefit from a positive growth outlook. The currencies of nations that are heavy commodity exporters strengthen because of increased demand, and Cryptocurrencies rise. In a “risk-off” market, Bonds go up – especially major government Bonds – Gold shines, and safe-haven currencies such as the Japanese Yen, Swiss Franc and US Dollar all benefit.

The Australian Dollar (AUD), the Canadian Dollar (CAD), the New Zealand Dollar (NZD) and minor FX like the Ruble (RUB) and the South African Rand (ZAR), all tend to rise in markets that are “risk-on”. This is because the economies of these currencies are heavily reliant on commodity exports for growth, and commodities tend to rise in price during risk-on periods. This is because investors foresee greater demand for raw materials in the future due to heightened economic activity.

The major currencies that tend to rise during periods of “risk-off” are the US Dollar (USD), the Japanese Yen (JPY) and the Swiss Franc (CHF). The US Dollar, because it is the world’s reserve currency, and because in times of crisis investors buy US government debt, which is seen as safe because the largest economy in the world is unlikely to default. The Yen, from increased demand for Japanese government bonds, because a high proportion are held by domestic investors who are unlikely to dump them – even in a crisis. The Swiss Franc, because strict Swiss banking laws offer investors enhanced capital protection.

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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