Iran is expected to deliver its response to a U.S. peace proposal by Friday, according to multiple sources familiar with the matter. The proposal, described as containing 15 points, was submitted through mediators as diplomatic efforts continue amid ongoing conflict.

Financial markets have reacted sharply to the prolonged uncertainty, with the S&P 500 on track for its fifth consecutive week of losses, marking its worst weekly losing streak in approximately four years. Oil prices have experienced significant volatility as traders grapple with uncertainty over the conflict's duration and potential outcomes.

Regional dynamics continue to shift as Gulf states reassess their positions. Saudi Arabia has reportedly granted U.S. forces access to King Fahd Air Base for the first time since the Gulf War, signaling closer military cooperation with Washington. Gulf allies have communicated to the U.S. that simply ending the current conflict would be insufficient, arguing that Iran's military capabilities must be degraded.

The Trump administration has reportedly extended the deadline for diplomatic talks following the recent market sell-off on Wall Street. However, concerns have emerged about potential insider trading related to U.S. policy and military plans on prediction markets, with critics noting slow enforcement action by the administration.

Economists have warned about broader economic implications, with some predicting potential escalation could risk triggering stagflation reminiscent of the 1970s. The ongoing uncertainty has created what analysts describe as conflicting market scenarios, leaving traders uncertain about which outcome will materialize.