Here’s a better picture (excuse barbies dream house ;))

i Like how the drapery panels are stacked to side away from fireplace in the pic posted by Judy G Designs. I’d do that with your panels too especially with the small space between window & fireplace. I think panels stacked off to both sides of windows is a cluttered look regardless of the color of panels. Seems like with 32” space you’ve got enough for 24” high art on mantel. I think rectangular shape not a long horizontal piece. Your spring view out those windows will be so pretty when trees leaf out! It looks very interesting now too just with the shapes.

Great, thank you for your input!