Hope of the Reopening of Ormuz Pushes Oil Prices Down
Donald Trump tempered hopes on Sunday, despite signs of progress from both sides. “I have asked my representatives not to rush to conclude an agreement, as time is in our favor,” he wrote on his Truth Social platform, also warning that the blockade imposed by his country on Iranian ports would remain in effect “until an agreement is reached, certified, and signed.” “As the president said, he is not in a hurry, he will not conclude a bad deal, and the president will not sign a bad deal,” emphasized Marco Rubio.
According to American media, the agreement being prepared between Tehran and Washington would allow ships to pass through Ormuz again, a passage through which a fifth of the world’s consumed hydrocarbons transited before the conflict. Buoyed by these agreement hopes, oil prices fell Monday morning in Asia. Brent North Sea and American WTI barrel prices dropped by more than 5% shortly after 6 a.m. in Paris.
According to CBS News, citing sources close to the discussions, the latest proposal would also involve unfreezing some Iranian assets in foreign banks. “Despite discussions starting today (Sunday), the United States continues to block certain clauses of the agreement, including the issue of frozen Iranian assets, and these points remain unresolved at this time,” however stated the Tasnim news agency at the end of the day.
The Fars agency reports, on the other hand, that sanctions on oil, gas, and other petrochemical products would also be lifted for the duration of the negotiations to allow Iran to export these critical productions, essential for its economy.
“You Can’t Resolve a Nuclear Issue in 72 Hours”
The discussed agreement does not seem to address the nuclear issue. “Negotiations on nuclear issues are highly technical. You can’t resolve a nuclear issue in 72 hours at a corner table,” Marco Rubio told the New York Times.
Once the Strait of Ormuz is reopened, “we will, according to agreed terms, engage in very serious negotiations on enrichment, highly enriched uranium, and their commitment to never acquire nuclear weapons,” he said, mentioning a “60-day” deadline in this regard.
Israeli Prime Minister Benjamin Netanyahu stated on Sunday that he had agreed with Donald Trump that any final agreement with Iran must “eliminate the nuclear threat,” according to a statement after a phone call Saturday night between the two allies.
Pakistani Prime Minister Shehbaz Sharif, a mediator in these negotiations, fueled the scenario of a phased resolution to the conflict by expressing hope to “host the next negotiation session very soon.” A first meeting was held in Islamabad on April 11, without a breakthrough.
