US Secretary of State Rubio says Iran poses a grave threat and seeks nuclear capability, adds talks on Thursday will focus on the nuclear programme and that Iran also poses a conventional weapons threat designed to target the US

• Does not think diplomacy is ever off the table.

The remarks from US Secretary of State Rubio underline escalating concerns regarding Iran's nuclear ambitions and conventional weaponry, reinforcing the geopolitical tensions in the region. This rhetoric could pressure energy markets, particularly oil, as disruptions are more likely in a high-stakes environment. Additionally, the indication that diplomacy remains a possibility suggests some space for potential negotiation, which can influence market sentiment toward stabilization or further volatility.