Iran Reiterates Ceasefire ‘Hard Conditions,’ Trump TACO Deal Will Be Weakened

TradingKey - According to the latest reports, Iran has signaled a hardening stance regarding the conditions for ending the war. Mohsen Rezaee, the new military advisor to Iran's Supreme Leader, stated in an interview with Iranian state television on March 23 that Iran will not easily end the conflict in the short term unless its core demands are fully met.

Rezaee explicitly proposed three key conditions for a ceasefire: first, Iran must receive full war reparations; second, all economic sanctions imposed by the West must be completely lifted; and third, the U.S. must provide international legal guarantees of non-interference in Iran's internal affairs. Until then, Iran will not halt its current military operations.

This statement significantly raises the threshold for previous market expectations of a rapid de-escalation. Previously, as Donald Trump signaled potential easing, global markets briefly entered a "TACO trade" logic, with risk assets rebounding in the short term and some safe-haven assets coming under pressure. However, Iran's latest hardline response implies that the possibility of reaching a deal quickly through diplomatic channels is declining in the short term.

Notably, Rezaee emphasized in the interview that the friction between the U.S. and Iran is not limited to the current conflict or recent military actions, but stems from long-term structural opposition dating back to the 1979 Iranian Islamic Revolution.

From a market perspective, this stance may disrupt the current "contained conflict" pricing logic. Once the market begins to reassess the duration of the conflict and escalation risks, energy prices may find renewed support, while risk assets that previously rebounded on expectations of easing could face some correction pressure.