Iran signals no early nuclear talks as it rules out missile negotiations

Tehran says its missile and defensive capabilities will not be subject to negotiations with any foreign party.
Iranian officials state that parties to the memorandum of understanding are first seeking to implement all of its provisions.
The comments reduce the prospects of a near-term resumption of negotiations on Iran’s nuclear program.

Ghiles Guezout FXStreet

Iran reaffirmed its red line on military issues on Tuesday, as markets continue to monitor geopolitical developments in the Middle East. According to Reuters, Iranian Foreign Ministry Spokesperson Esmaeil Baghaei said that Tehran’s missile and defensive capabilities would “not be subject to negotiations with any party.”

Baghaei also stated that the parties involved in the current memorandum of understanding are seeking to implement all of its clauses before opening new discussions on the nuclear issue.

The remarks suggest that Iran does not view an immediate resumption of nuclear negotiations as a priority until existing commitments are fully met.

Key takeaways

Iran's Baghaei says Tehran's missile and defensive capabilities won't be subject of negotiations with any party.
Iran's Baghaei says parties to MoU are trying to achieve all of its clauses before starting negotiations on nuclear issue.
Iran's Baghaei says concerned parties are trying to achieve all of MoU clauses before starting negotiations on nuclear issue.

Market reaction

Market reaction has remained limited following the comments. The US Dollar (USD) is trading firmer, with the US Dollar Index (DXY) rising 0.15% on Tuesday to around 101.15, while West Texas Intermediate (WTI) Crude Oil remains under pressure, down 0.90% on the day near $73.25 per barrel.

(This story was corrected on June 23 at 09:55 to say on Tuesday, not Monday.)

Author

Ghiles Guezout

FXStreet

Ghiles Guezout is a Market Analyst with a strong background in stock market investments, trading, and cryptocurrencies. He combines fundamental and technical analysis skills to identify market opportunities.

AUD/USD holds above 0.6950 as bullish USD caps gains

AUD/USD edges lower during the Asian session on Tuesday, stalling a two-day recovery move from a two-month low, touched last week. An extended rout in the fixed income market keeps US bond yields elevated near multi-year highs. This, along with geopolitical uncertainties, helps the US Dollar retain its bullish tone despite receding October Fed hike bets. However, expectations for another RBA rate hike this month could act as a tailwind for the Aussie.

USD/JPY rises back above 158.00 despite hawkish BoJ outlook

USD/JPY rises back above 158.00 in the early European morning on Tuesday. The pair strengthens as the Japanese Yen fails to find any inspiration from hawkish BoJ expectations and looming intervention risks. Meanwhile, geopolitical uncertainty and elevated US bond yields keep the US Dollar near its YTD high despite receding October Fed hike bets. This, in turn, helps the pair stay supported.

Gold hits two-month low as bears await break below $4,100 amid sustained USD strength

Gold attracts fresh sellers following the previous day's consolidative price move, and drops to a two-month low during the Asian session, with bears now awaiting a break below the $4,100 mark before positioning for further losses. Despite receding October Fed rate hike bets, the US Dollar retains its bullish tone and continues to undermine demand for the commodity.

Ripple and Stellar weaken as derivatives positioning fades

Ripple (XRP) and Stellar (XLM) face pressure trading below $1.499 and $0.220, respectively, on Tuesday after a modest correction at the start of the week. Traders should be cautious as weakening derivatives metrics and fading bullish momentum suggest further corrections for XRP and XLM. Derivatives data shows a weakening and cautious signal among traders.

The scarcity trade is gaining momentum – The biggest commodity moves may still be ahead

Something extraordinary is happening across global Commodity markets. Oil is above $100. Diesel has reached record prices. Copper has broken records. Global food prices are rising again. China is restricting fuel exports. Governments are releasing emergency reserves.

Eurozone inflation just hit 3.8%, its highest in three years. This chart shows why the ECB can’t simply hike its way out

The ECB would normally have a relatively straightforward answer to inflation running almost twice its target: raise interest rates. But these are not normal circumstances. This time, the bond market is already doing part of the tightening for it, leaving the ECB facing an increasingly difficult dilemma.