New Delhi, May 22 -- UAE presidential advisor Anwar Gargash on Friday said there is a "50-50 chance" of an American-Iranian peace deal, yet emphasised that any diplomatic resolution must address the core drivers of regional instability to prevent subsequent warfare.

Islamabad has been brokering a US-Iran truce to halt hostilities that have rattled world economies and bottlenecked commerce across the Strait of Hormuz, a critical bottleneck for roughly 20% of global petroleum and liquefied natural gas supplies.

"It is a 50-50 chance that we will reach an agreement. My worry is that the Iranians have always over-negotiated," Anwar Gargash, diplomatic adviser to the UAE president, said at the Globsec conference in Prague.

"This is not some...