First shuttle talks between the US and Iran in months bring hope for progress
The first shuttle talks between the United States of America and Iran in months raised hopes that the two adversaries might make progress toward ending the Middle East war. However, neither side made any changes to their positions.
Abbas Araqchi, Iran's Foreign minister and Steve Witkoff?and?Jared Kushner, US envoys?and?in New York communicated via mediators. This was the first contact between the two since the interim ceasefire agreement failed in July.
"Steve Jared and I had a very fruitful meeting with Iranian mediators today, just mediators. "Let's see what will happen with that," said US President Donald Trump. They've been mediating for a while but I think they're in a good position to reach a deal. Everyone is saying it.
Trump told the UN General Assembly earlier that he would have to decide if he wanted to "annihilate Iran" or make a deal with it. On Wednesday, Iran's president Masoud Pezeshkian would address the group.
Esmail Baghaei, spokesperson for the Iranian Foreign Ministry in New York, said Tehran engaged with the United States via a Qatari mediator and communicated conditions including an end to war on all fronts as well as a stop to US "acts" of aggression.
Iranian state media reported earlier that Araqchi had met Witkoff, but Iranian officials clarified that it was not face to face. Araqchi also met with Sheikh Mohammed bin Abdulrahman Al Thani who was one of the key mediators in previous talks.
OIL PRICES STAY AT A TWO WEEK LOW
After Houthi fighters launched a major offensive in Yemen and fired on Saudi Arabia, the?diplomatic open helped to keep oil prices at two-week lows. Brent crude is now just below $100 per barrel, which it shot past this month.
The "Operation Epic Fury" war, which was launched by Trump and Israel in February, has lasted for nearly seven months. It has killed thousands of people and disrupted global energy supplies.
Trump reiterated his previous claims that the war might end by the US midterm elections in November, but he did not explain why.
The sides have exchanged shots several times since the diplomatic break in July. However, Trump held off on a full-blown return of strikes when he received advice from his military commanding officers that munitions are running low.
A June interim agreement signed by Trump Pezeshkian gave Iran its main demands, namely lifting of financial sanctions and unfreezing of assets in exchange for discussions on limiting the nuclear programme.
This deal fell apart within weeks due to shipping rules in Strait of Hormuz. The Strait of Hormuz was the conduit for about a fifth of the world's oil and natural gas liquefied before the war. Iran wants greater control of the Strait and to collect fees from ships using it. Washington does not agree.
In recent weeks, despite the near-daily attacks against tankers, traffic has gradually increased through the Strait. Oil producers paid shipping companies up to a quarter the value of the cargo to turn off transponders and navigate the route, as well as transfer crude oil to vessels beyond the Strait.
Exports from the United Arab Emirates are already back to pre-war levels, and Saudi Arabia sold 60 million barrels for this month and the next to be delivered outside the strait?off the coasts of Oman. This is a significant increase compared to August.
Even so, global energy markets continue to be squeezed by disruption. Global supplies are missing about a third Gulf oil. Shortages of refined products like?diesel have caused inflation, increased interest rates, and hurt Trump's Republicans ahead of the election.
Since the Houthis, backed by Iran, advanced into Yemen in this month, the risk of further disruptions has increased. This is because the Bab el-Mandeb Strait, at the southern entry to the Red Sea and an alternative route for Saudi Arabia's exports, could be affected.
Washington has, on its part, imposed a port blockade in Iran, which has deepened the economic crisis there. Iranian officials have said they will endure the blockade in order to achieve their objectives, and won't reopen Strait of Hormuz unless it is lifted.
(source: Reuters)
