Markets moved ahead of the critical CPI data to be announced in the US. With the decision to extend the ceasefire between the US and Iran, the price of spot gold surged to the $4,413 level, while oil prices declined.
As global markets focused on the critical Consumer Price Index (CPI) data coming from the US, a diplomatic move from the Middle East front sent gold prices soaring. The agreement between the US and Iran to extend the ceasefire had a doping effect on the markets.
The decision by the US and Iran to extend the ceasefire balanced geopolitical risks and was immediately reflected in the markets.
PAKISTAN IS MAKING EVERY EFFORT
Pakistan has stated that it is making every effort to bring the US and Iran to the negotiation table to resolve the tension in the Middle East. Tahir Hussain Andrabi, Spokesperson for Pakistan's Ministry of Foreign Affairs, made a statement regarding the situation in the Middle East at a weekly press briefing. "Pakistan is making every effort to bring the parties (the US and Iran) to the negotiation table," Andrabi said, adding that they are working for peace and stability in the region. Andrabi stated that they will continue to ensure constructive dialogue continues through direct and indirect channels to resolve the matter.
IRAN - US CONFLICTS AND STRAIT OF HORMUZ TALKS
In the first phase of the agreement reached between Iran and the US on June 14 with Pakistan's mediation, it was decided that the Strait of Hormuz would be opened and Iran would not charge fees for passages through this strategic waterway for 60 days, in return for the US releasing Iran's frozen assets.
After the signing of the agreement, the US did not release Iran's frozen assets and designated an alternative route through Omani territorial waters for passages through the Strait of Hormuz. Iran, considering these US steps a violation of the agreement, restricted passages through the Strait and struck some ships "attempting unauthorized passage."
Despite the agreement, the tension between the two countries led to severe clashes around the Strait of Hormuz on July 8, which continued for about two weeks. Iran had resumed talks with Oman, which has a coastline on the Strait of Hormuz, to determine safe passage routes for ships in the Strait.
Kazem Gharibabadi, Iran's Deputy Foreign Minister, stated on August 5 that negotiations with Oman had entered their final stage and that the negotiated route is a "temporary route" expected to last 2 to 4 months, adding that the full reopening of the Strait of Hormuz would depend on the US's stance.