US President Donald Trump on Monday signalled that he was unlikely to accept Iran’s latest proposal to end the conflict, sources familiar with the matter told CNN, after Tehran proposed an agreement that would
reopen the Strait of Hormuz while leaving its nuclear programme for later negotiations.
As per the report, Trump conveyed his views during a Monday meeting with top national security officials, where Iran was discussed. One of the sources said Trump was not likely to accept the plan, which was transmitted to the US over the last few days.
Officials said reopening the strait without resolving questions over Iran’s nuclear enrichment or stockpile of near-bomb-grade uranium could remove a key piece of American leverage in the talks. However, allowing the crucial shipping lane to remain blocked would prolong the higher energy prices that have caused the cost of gas to spike in the US.
Trump’s next steps remain unclear as American officials remain concerned at what they regard as divisions within Iran’s regime, and are unsure who retains ultimate decision-making power over a prospective deal. This came after Trump cancelled the visit of a delegation comprising special envoy Steve Witkoff and his son-in-law Jared Kushner to Islamabad for a second round of talks.
READ MORE: Just 12-22 Days Before Shutdown? Oil Storage Running Out As Hormuz Blockade Pushes Iran To Brink
Diplomatic Efforts Continue
While the US and Iran have met for a second round of talks in Pakistan, the two sides are not as far apart as they seem, sources familiar with the talks told CNN. Intense diplomatic efforts are underway behind the scenes for an initial deal that could restore the status quo and reopen the Strait of Hormuz without restrictions.
This comes with several challenges. The main sticky point is that Trump has previously said that any deal would require Iran to forfeit its supply of near bomb-grade uranium and give up enrichment, demands Iran has steadfastly refused to accept.
Iran’s Defence Ministry spokesperson Reza Talaei-Nik said that the US is “no longer in a position to dictate its policy to independent nations”, and added that Washington should “accept that it must abandon its illegal and irrational demands.”
Meanwhile, Iranian Foreign Minister Abbas Araghchi has met Russian President Vladimir Putin in Moscow and blamed the US for the failure of talks. “The US approaches caused the previous round of negotiations, despite progress, to fail to reach its goals because of the excessive demands,” Araghchi said.
Oil Prices Climb To Record High
Meanwhile, global oil prices climbed above $110 a barrel for the first time in three weeks today, as traders worry that the United States and Iran are no closer to a deal to end the war and open the Strait of Hormuz.
Brent crude, the global oil benchmark, was up 2.7% to $111.2 a barrel in early morning trade. WTI, the US benchmark, was trading 2.3% higher at $98.5 a barrel.
The Strait of Hormuz is a vital shipping lane that supplies nearly 20% of the world’s energy needs. Since the US-Israeli attack on Iran on February and Tehran’s retaliatory attack, the waterway has been virtually shut for traffic, sending the global economy in a tailspin.
Despite briefly opening the strait, Iran closed it again after the United States refused to remove the Navy blockade around Iranian ports. Many countries have called for a quick resolution to end the war, citing the negative effects of a prolonged conflict on the global economy.
