Pakistani officials have confirmed they’re relaying messages between the US and Iran, but for now, talks in Islamabad are seen as unlikely, Sky's Hakim reports; source says the talk of negotiations is little more than a smokescreen

The confirmation that Pakistani officials are mediating between the US and Iran, combined with skepticism about the seriousness of negotiations, indicates a potential escalation in tensions. If seen as a smokescreen, this could weigh on risk assets and support safe havens like gold and the yen, while keeping the energy market on edge given the implications for oil supply and regional stability.