President Donald Trump has cancelled plans to send U.S. envoy Steve Witkoff and Jared Kushner to Islamabad, Pakistan, for a second round of peace negotiations with Iran. The decision follows a breakdown in momentum toward the talks, with Trump stating on Saturday that there was no point in sitting around talking about nothing.
The stalling of these negotiations comes amid heightened tensions in the Middle East. Tehran has largely closed the vital Strait of Hormuz, while Washington has imposed a blockade of Iran's ports, extending disruptions that have roiled global markets.
Financial markets responded sharply to the news. Oil prices gained, with Brent crude rising more than 2 percent. Meanwhile, U.S. equity-index futures dropped, stocks fell, and the dollar climbed following the failed diplomatic efforts.