Ongoing US-Iran hostilities, including military strikes and economic blockades since February 2026, have kept bilateral relations at a low point. Iranian officials rejected a potential September meeting at the UN General Assembly, citing insufficient trust and demanding prior concessions on sanctions and the Strait of Hormuz. President Trump dismissed Iranian proposals and signaled options ranging from further pressure to negotiations, while Pezeshkian emphasized that talks require mutual respect without coercion. Any direct engagement would also need approval from Iran's Supreme Leader. These barriers have reinforced trader consensus on the low likelihood of a summit before year-end.
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