US official confirms ongoing discussions with China, while Iran’s negotiations make little progress

    by VT Markets
    /
    Jun 10, 2025
    A US official has confirmed that discussions between the US and China are ongoing. These talks focus on technical details. However, a Senior Administration official has mentioned that progress with Iran is slowing down. Iran appears to be prolonging negotiations without making real advancements while continuing its nuclear activities.

    International Diplomacy Developments

    This article highlights two important developments in international diplomacy that may indirectly influence market sentiment and future positioning. First, Washington and Beijing are in active discussions, delving into technical aspects of an undefined issue—likely more about procedures than major policy changes. The atmosphere seems steady and possibly constructive, although no specific outcomes have been revealed. On the other hand, progress with Tehran is stalling. While talks aren’t completely breaking down, negotiators express clear frustration. The concern is that Tehran is engaging without making headway, all while continuing its nuclear program. This creates uncertainty, especially if diplomatic efforts don’t yield tangible results soon.

    Strategy and Market Positioning

    For us, this uncertainty poses both risks and opportunities. The standstill with Tehran raises the chance of more sanctions or headlines about regional instability, which could cause sharp market shifts. Prices for near-term futures, especially those related to resource-dependent sectors, may react quickly even to minor news. It’s important to adjust our exposure to avoid being too tightly wound around triggers related to energy or defense sectors. Meanwhile, the technical nature of the talks between Washington and Beijing suggests that significant changes in the short term are unlikely. This alters how we interpret risk. If no major positive or negative news comes out, implied volatility may decrease in instruments that expected bigger movements. This could impact derivatives closely linked to interest rate differences or trade-related sentiments. In both scenarios, we should assess changes not just by their geopolitical impact, but also by how markets can exaggerate potential shifts. One situation seems slow and ongoing, while the other feels stagnant but more likely to spark action. Our positioning should reflect outcomes based on probabilities rather than just binary scenarios. Create your live VT Markets account and start trading now.

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