US-Iran talks eye phased Hormuz deal, but leverage stalls progress – Reuters

US and Iranian negotiators are in talks to reach a phased agreement that could end their conflict, according to Reuters. The proposed deal involves Iran reopening the Strait of Hormuz in exchange for the US lifting its economic blockade and allowing access to frozen Iranian assets. However, progress is being hindered as neither side is willing to relinquish its leverage, according to Iranian sources cited by Reuters.

Meanwhile, US President Donald Trump expressed optimism that a deal could be reached after the upcoming midterm elections in the US Congress on November 3. In financial terms, the concepts of "risk-on" and "risk-off" markets are relevant. A "risk-on" market is characterized by investors' optimism, leading to increased buying of risky assets.

Conversely, a "risk-off" market sees investors becoming cautious, favoring safer investments such as bonds and currencies like the US Dollar, Japanese Yen, and Swiss Franc.