Analysis: Cautiously view the optimistic expectations in the upcoming "peace agreement" in the Middle East

Macquarie Bank global strategists Thierry Wizman and Gareth Berry stated in a report that it is still too early to have high expectations for a "peace agreement" in the Middle East to be reached in the coming days, as the demands from both sides still seem difficult to reconcile. The idea of getting the U.S. to abandon its demands regarding Iran's nuclear assets, or that the U.S. would simply withdraw its bases in the Gulf region, is unrealistic.

At this stage, it is also unlikely to see Iran abandon its support for its proxy forces. However, this war is unlikely to last beyond mid-April, as by then the threat from Iran is likely to be eliminated. Once the threat is removed, the U.S. will hold the upper hand in any subsequent negotiations.