A senior Iranian official told Reuters that Tehran's talks with members of the Mecca pact do not address Iran's nuclear program, signaling that the nuclear file is being kept off the table in these discussions. The transmission channel here runs through geopolitical risk premia and sanctions expectations: when a nuclear dossier is explicitly excluded from diplomatic engagement, markets tend to price a lower probability of near-term sanctions relief or a negotiated nuclear settlement, keeping the risk premium on Iranian and regional assets elevated. Iranian sovereign exposure, the rial, and Iran-linked energy and shipping risk are the most directly affected, while broader Gulf equities and oil markets could see second-order effects through perceptions of regional tension and supply security. Traders will be watching whether subsequent Iranian or Mecca pact statements explicitly reference the International Atomic Energy Agency or any formal nuclear negotiation track, as confirmation or rejection of such a link would shift expectations around sanctions and regional risk.
SENIOR IRANIAN OFFICIAL TO REUTERS: TEHRAN TALKS WITH MECCA PACT MEMBERS DO NOT COVER IRAN'S NUCLEAR ISSUE
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