Iran-US Talks Boost Rial 15%, Stocks 1.9%
1min read Iran and the United States held their first formal talks in Oman, focusing on limiting Iran's nuclear activities in exchange for the lifting of sanctions. Officials from both sides described the talks as "constructive" and "very positive," which led to a rebound in the Iranian currency, the rial, and the stock market. The positive outcome of the talks has raised hopes for a potential breakthrough in the long-standing nuclear dispute.
The next round of talks is scheduled for April 19 and may take place in Europe, though Oman will continue to play a coordinating role. The talks mark a significant step towards breaking the stalemate over Iran's nuclear program and easing tensions with the United States. Following the talks, Iran's Foreign Minister and chief negotiator, Abbas Araghchi, described them as "constructive," which led to an appreciation of the rial. The rial had been in a state of continuous depreciation since former U.S. President Donald Trump withdrew from the 2015 nuclear deal and reimposed sanctions in 2018. The unofficial market rate of the rial against the U.S. dollar rose to approximately 890,000 rials to 1 dollar, marking a 15% increase from the historic low point before the talks.
The positive sentiment from the talks also boosted the Tehran Stock Exchange's main index, which rose by 1.9% by midday local time. This increase reflects the optimism surrounding the upcoming talks on April 19. The economic struggles faced by Iran due to decades of confrontation with the United States have left its citizens weary and hopeful for any signs of relief.
Trump, speaking to reporters, described the talks as "going well" and added that the situation in Iran was "progressing quite well." The U.S. delegation also characterized the talks as "very positive and constructive." The two sides exchanged messages through Oman's Foreign Minister, engaging in face-to-face discussions for a brief period after more than two hours of separate negotiations. The next round of talks is expected to continue in Europe, though Oman will remain involved in the coordination process.
An Iranian lawmaker even suggested that the negotiations could be elevated to a new level. Member of the Iranian Parliament's National Security and Foreign Policy Commission, Abolfazl Zohrevand, stated, "If the U.S. side has something worth listening to and discussing, then a visit by Mr. Elliott Abrams to Iran is not out of the question."
