President Donald Trump suggested Wednesday that he has little interest in reaching a deal with Iran, even as his special envoy, Steve Witkoff, continues negotiations aimed at ending the conflict. Speaking at a campaign rally in San Antonio, Texas, Trump praised Witkoff’s efforts but indicated that a diplomatic agreement was not necessarily his preferred outcome.
- “He’s working on the Iran deal and doing very well. I think the deal isn’t really something that I want to do, but they’re willing to offer us anything to stop,” Trump told supporters.
Why it matters: Trump’s comments raise fresh questions about the prospects for a negotiated end to the conflict. While the president suggested Iran is willing to make significant concessions, he also signaled that those concessions may not be enough to secure an agreement.
The sticking point: Iran’s nuclear ambitions remain central to the negotiations. “They will never have a nuclear weapon,” Trump said, reiterating his administration’s position that Tehran must be prevented from developing nuclear weapons.
The market implications: Any indication that a diplomatic resolution is becoming less likely could renew concerns about prolonged disruptions to Middle Eastern energy supplies. Higher oil prices would complicate the inflation outlook and could put additional upward pressure on Treasury yields and mortgage rates.
The bottom line: Negotiations may be progressing, but Trump’s latest comments suggest an agreement is far from guaranteed. For financial markets, the uncertainty surrounding the conflict remains an important risk to inflation, bond yields and mortgage rates.