(AFP) – The United States was waiting on Thursday for Iran to respond to its latest proposed deal to end the war in the Middle East and to reopen the key shipping lane out of the Gulf. Asian stocks soared and oil prices fell after US President Donald Trump said once again that an agreement could be near following positive talks, and Iran indicated it would relay its latest position to mediator Pakistan.
Any agreement to prolong the ceasefire between the United States and Iran could also lower tensions in Lebanon, where an already fragile truce with Israel was under renewed strain after a strike on southern Beirut killed a Hezbollah commander. The war, which was launched by the United States and Israel in late February, has seen Iran respond with attacks across the Middle East and impose a chokehold on the Strait of Hormuz, a vital gateway for the Gulf oil and gas industries as well as a strategic trade route.
Trump had this week briefly initiated a naval operation to escort commercial vessels and force open the strait, only to stand it down within hours, citing progress in negotiations with Iran, which have been mediated by Pakistan and supported by Washington’s Gulf Arab allies. However, in Iran, many citizens were wary of increased repression as the war drags on. “The economic situation got worse, and this government has become even more brutal,” 49-year-old Ali told AFP journalists in Paris from the Iranian city of Tonekabon, using only his first name for fear of retribution.
“We’ve had very good talks over the last 24 hours, and it’s very possible that we’ll make a deal,” Trump told reporters on Wednesday, adding his now habitual threat to return to bombing if Tehran refuses to comply with US demands. Iran’s foreign ministry spokesman Esmaeil Baqaei stated that the US proposal remained “under review,” and Tehran would communicate its position to mediator Pakistan “after finalizing its views.”
According to a report from US network NBC News, Trump’s U-turn came after Saudi Arabia — whose Crown Prince Mohammed bin Salman reportedly communicated directly with Trump — refused to allow US forces to use its airspace and bases for the Hormuz operation. US news outlet Axios, citing two officials, reported that both Tehran and Washington were close to an agreement on a one-page memorandum of understanding aimed at ending the war and establishing a framework for negotiations on Iran’s nuclear program.
Trump has claimed that Iran’s leadership is divided in the wake of the deaths of many senior figures from US and Israeli strikes. However, President Masoud Pezeshkian said on Thursday that he had met with the country’s supreme leader, Mojtaba Khamenei, who has not been seen in public since his appointment in early March. “What struck me most during this meeting was the vision and the humble and sincere approach of the supreme leader of the Islamic revolution,” Pezeshkian said in a video broadcast by state television. Khamenei, who was reportedly wounded in strikes on the first day of the Middle East war that claimed the life of his father and predecessor, Ali Khamenei, has issued only written statements since his appointment.
Oil prices fell again, dropping by two percent on Thursday — having already fallen around 10 percent over the previous two days — while Tokyo’s Nikkei index led another strong rally across Asian stocks, fueled by revived optimism that the talks will bear fruit. Energy prices are still considerably higher than before the conflict, but international standard Brent and US benchmark West Texas Intermediate are both now below the symbolic $100 level.
Markets have been particularly concerned about the Strait of Hormuz, which in peacetime carries a fifth of the world’s oil and LNG trade as well as a significant portion of its fertilizer. On the Lebanese front, Israel struck Beirut’s southern suburbs on Wednesday in the first such attack in nearly a month, killing a senior Hezbollah commander from its elite Radwan force. In a video released by his office, Israel’s Prime Minister Benjamin Netanyahu stated, “I say to our enemies in the clearest possible terms: no terrorist is immune. Anyone who threatens the State of Israel will die because of his actions.” The Israeli military reported on Thursday that an “explosive drone impact” had wounded four of its soldiers — one severely — in southern Lebanon the previous day.
burs/dc/ser – AFP teams in Tehran, Washington, Beirut, and Jerusalem.
© 2024 AFP
