Iranian Parliament speaker Mohammad Bagher Ghalibaf has resigned from Tehran’s negotiation team, as reported by Israel N12News on Thursday. Ghalibaf, who recently emphasized that all Iranians are 'revolutionary' regardless of being labeled as radicals or moderates, stepped down following intervention by the Islamic Revolutionary Guard Corps (IRGC) [1].
The resignation has had a notable impact on market sentiment, shifting it to risk-averse. US equities turned negative in response to the news. The US Dollar strengthened, rising 0.26% according to the US Dollar Index (DXY), which reached 98.85. Oil prices surged, with WTI crude climbing more than 4% and approaching $97.00 per barrel. Conversely, gold prices extended their losses by 0.70%, targeting $4,700 [1].
Additionally, Israel's Channel 12, citing US officials, reported that US President Donald Trump is not eager to resume the war, but may not have a choice [1].
The market reaction reflects a classic 'risk-off' environment, where investors seek safer assets such as the US Dollar, while equities and riskier assets decline. The shift in sentiment underscores heightened uncertainty following Ghalibaf's resignation and the involvement of the IRGC in the negotiation process [1].
CONCLUSION
The resignation of Iran's Parliament speaker Ghalibaf from the negotiation team, following IRGC intervention, has triggered a significant risk-off reaction in global markets. Investors moved towards safe-haven assets, with the US Dollar and oil prices rising, while equities and gold declined. The event underscores increased geopolitical uncertainty and market caution.