Iran and Oman are likely to finalise a deal on the reopening of the Strait of Hormuz with the implementation of a regulatory mechanism for international shipping. While the countries were in talks with each other, US President Donald Trump claimed that the US was holding negotiations with Tehran and added that he prefers diplomacy over war. However, nothing he said has matched what he decided on the ground against Iran over the past two months.
Yemen’s Houthis claimed attacks on two Saudi oil tankers near Yanbu port in the Red Sea and in the Gulf of Aden. As a result of these attacks, Brent crude futures dropped 37 cents, or 0.5 per cent, to $79.08 a barrel as of 00:24 GMT. US West Texas Intermediate (WTI) crude futures went down 53 cents, or 0.7 per cent, to $74.69 a barrel.
While markets are stabilising, Iranian President Masoud Pezeshkian said during the second anniversary of his taking charge of the country that enemies of Iran targeted military commanders, scientists, and the country’s strategic capabilities to undermine the country’s resilience and technological progress.
The dispute in the Strait of Hormuz would remain despite a possible temporary agreement with Oman. Meanwhile, at a Las Vegas public event, Trump said talks between Washington and Tehran could prevent a US military strike on Iran.
Besides, similar views were expressed by US Vice President JD Vance, who confirmed that “It’s going to be messy, and it’s going to take some time to get there.”
“Oil, I think, was at $79 today. Those oil prices are going to come down and stay down. Iran will never have a nuclear weapon, and the United States will be in a stronger position, but we’re kind of in the middle of the game, and I think people are trying to prejudge exactly how this is going to go.”
“I can tell you with confidence, it’s going to go in a place that is good for the United States of America, but we’re going to use all the tools that we have – military, economic, and diplomatic – to make sure we bring this thing to the right resolution,” he said.
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