Iran Submits New Proposal for Talks as Oil Prices React to Diplomatic Signals

Baker Institute

American and Iranian flags.

Tehran has submitted a new proposal for negotiations with the United States through Pakistani mediators, according to the state news agency Islamic Republic News Agency (IRNA), in a move that could revive stalled efforts to end the conflict.

IRNA gave no details but global oil ‌prices, which have risen sharply since Iran started a blockade of the Strait of Hormuz, dropped after its report.

The blockade of the vital maritime route has disrupted around 20 per cent of global oil and gas supplies. At the same time, the United States Navy has maintained restrictions on Iranian crude exports, contributing to rising energy costs and increasing concerns over a potential global economic slowdown.

Although a ceasefire has been in place since 8 April, tensions remain high. Reports that Donald Trump was to be briefed on plans for possible new military strikes aimed at compelling Iran to negotiate had earlier driven oil prices to a four-year high on Thursday.

According to senior Iranian sources cited by Reuters, Iran has activated its air defence systems and is preparing a broad response in the event of an attack, amid assessments that any potential U.S. action could involve a short but intensive strike, possibly followed by Israeli involvement.

Washington has not said what its next steps are. President Trump said on Tuesday he was unhappy with the previous proposal from Iran, and Pakistan has not set a date for new talks on ending a war that has killed thousands, mainly in Iran and Lebanon.

After U.S. and Israeli airstrikes on 28 February, Iran fired at U.S. bases, infrastructure and U.S.-linked companies in Gulf states, while the Iran-backed Lebanese group Hezbollah launched missiles at Israel, which responded with strikes on Lebanon.

Iranian Foreign Ministry spokesman Esmaeil Baghaei cautioned on Thursday against expecting quick results from talks.

Source: Reuters



PUKMEDIA