Iran has delivered its latest negotiating proposal to the United States via Pakistani mediators, according to Iranian state news agency IRNA reported on Friday. "The Islamic Republic of Iran delivered the text of its latest negotiating proposal to Pakistan, as the mediator in talks with the United States, on Thursday evening (April 30, 2026)," the official IRNA news agency reported, without elaborating on the specific contents. The White House has refused to comment, saying it will not detail private diplomatic conversations, as reported by The Hindu. This development represents a significant step forward in diplomatic efforts to resolve the ongoing Middle Eastern conflict, with Iranian Foreign Minister Abbas Araghchi confirming the proposal was sent through Pakistani intermediaries. Iranian Foreign Ministry spokesman Esmaeil Baghaei cautioned on Thursday against expecting quick results from talks, indicating a measured approach to the negotiation process.
Emerging-market benchmarks extended their climb in holiday-thinned trading as Iran delivered a new proposal to the US via Pakistan while the Strait of Hormuz remains shut. According to reports from Bloomberg, the MSCI Emerging Markets Index rose 0.2%, with United Arab Emirates stocks including First Abu Dhabi Bank PJSC and ADNOC Drilling Co. contributing most to the gains. The currency index rose 0.3%, helped by gains in the Hungarian forint and Polish zloty, as markets responded positively to the diplomatic developments. Global oil benchmark Brent crude futures for July shed 0.4% to $109.96 a barrel after the IRNA report, though they were still poised for a 4.5% gain over the week after hitting $126 a barrel on Thursday, the highest level since March 2022.
The Strait of Hormuz blockade has choked off 20% of the world's oil and gas supplies, with the US Navy blocking exports of Iranian crude oil. This has pushed up energy prices and increased concerns that there will be an economic downturn. The blockade has created significant market volatility, with reports that U.S. President Donald Trump was to be briefed on plans for new military strikes to compel Iran to negotiate pushing global oil prices up to a four-year high at one point on Thursday. A ceasefire has been in place since April 8, but tensions remain high as Iran has activated air defences and plans a wide response if attacked, having assessed that there will be a short, intensive U.S. strike, possibly followed by an Israeli attack. Two months into the conflict, the vital sea channel is still largely closed because of an Iranian blockade, with the U.S. Navy maintaining its blockade to prevent Iran's oil tankers from getting out to sea.
Oil moved nearly 4% lower on Friday, paring the week's advance, as reported by Bloomberg. Most markets in Asia, Latin America, Europe and Africa are closed for Labor holiday, contributing to the reduced trading volume. The oil price decline comes after a week of volatility as markets repeatedly swung between optimism for an end to Middle Eastern conflict and concerns over inflationary impacts of oil-price surges. The latest developments in Iran's response to US proposals via Pakistan may have contributed to the oil price correction, with Brent crude futures for July shedding 0.4% to $109.96 a barrel following the IRNA report.
In currency markets, the forint gained 0.2% against the euro and zloty advanced 0.1%, as reported by Bloomberg. Traders focused on cues for the dollar from Japan, where the yen soared after authorities intervened in the foreign-exchange market. Hungary has released previously undisclosed details of a €1 billion ($1.2 billion) loan that outgoing Prime Minister Viktor Orban's government took from China in 2024, according to news website 444.hu. The currency movements reflect broader market optimism about the potential for diplomatic resolution of Middle Eastern tensions.
According to Reuters, Trump faces a formal U.S. deadline on Friday to end the war or make the case to Congress for extending it under the 1973 War Powers Resolution. A senior administration official said that, for the purposes of the resolution, hostilities had terminated due to the April ceasefire between Tehran and Washington. A State Department cable due to be delivered orally to partner nations by May 1 invited them to join a new coalition, called the Maritime Freedom Construct, to enable ships to navigate the strait. France, Britain and others have held talks on contributing to such a coalition but said they would help to open the Strait only when the conflict ends. UAE presidential adviser Anwar Gargash said on Friday that no unilateral Iranian arrangements can be trusted regarding freedom of navigation through the Strait of Hormuz, following its "treacherous aggression" against its neighbours. Despite lingering geopolitical risks pushing volatility to the highest in more than three years, equity valuations and carry trades are keeping many investors bullish over the medium-term outlook, with EM earnings momentum expected to remain positive over the next 12 months.
