US and Iran progress toward potential peace deal and agreement

Updated: 6:03 PM PKT — May 26, 2026

Optimism for an imminent US-Iran peace deal has faltered following reports of fresh US military strikes on Iran, sending ripples across Asian financial markets. The uncertainty caused Brent crude futures to rebound over 3% to nearly $100 a barrel.

The rising oil prices and waning peace prospects led to a sell-off in regional currencies. The Indian rupee snapped a three-session winning streak, falling nearly 0.5% against the dollar, while the Indonesian rupiah and Philippine peso also weakened. Indian equities declined and bond yields rose as investors reacted cautiously to the developments.

Updated: 4:29 PM PKT — May 26, 2026

Hopes for a potential US-Iran peace deal have intensified as a high-level Iranian delegation, including the Parliament Speaker and Foreign Minister, arrived in Qatar for negotiations. The inclusion of Iran’s central bank governor in the delegation signals that the release of frozen Iranian assets is a key point of discussion. The diplomatic push follows a recent phone call between the Qatari Prime Minister and the Saudi Foreign Minister, who discussed coordinating mediation efforts.

The prospect of an agreement has had a significant impact on global markets. Crude oil prices fell to a two-week low, with Brent crude dropping to around $97 a barrel. The positive sentiment also boosted the Pakistan Stock Exchange, which saw its benchmark KSE-100 index surge by 3,881 points.