US special envoy Steve Witkoff and White House adviser Jared Kushner will travel to Islamabad on Saturday for Iran talks, following outreach from Tehran to the Trump administration, the White House said.

U.S. special envoy Steve Witkoff and White House adviser Jared Kushner are set to travel to Islamabad for talks with Iran, following direct outreach from Tehran to the Trump administration. The diplomatic overture is being interpreted as a potential shift in U.S.-Iran relations, with market attention focused on how improved dialogue could affect sanctions policy and regional risk premiums. The primary transmission mechanism is geopolitical risk repricing, particularly in energy markets and equities sensitive to Middle East stability. Assets most exposed include Iranian-linked energy firms, U.S. defense contractors, and regional financial instruments tied to political stability. Traders will watch for official statements from the talks on Saturday, as well as any updates on sanctions relief or nuclear program negotiations, for cues on de-escalation prospects.

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