Diplomacy Emerges, US-Iran War Remains Unabated
The US and Iran have both signaled they remain open to negotiations, despite renewed attacks on each other on Monday. This diplomatic signal comes amid a conflict that has been going on for over a week and is becoming increasingly unmanageable.
US Secretary of State Marco Rubio said Iran has signaled its willingness to negotiate, either directly or through a mediator. He said Washington remains open to diplomacy, but emphasized that Iran's behavior must change if it wants to see a change in the US's stance.
For Iran, Foreign Ministry spokesman Esmail Baghaei said Tehran has received a new proposal from the mediator. The proposal is said to aim to prevent further escalation of tensions, although Iran has not provided details.
However, the chances of negotiations remain elusive. The ceasefire reached last month has been shaken by the new attacks, while both sides continue to vie for control of the Strait of Hormuz, a vital route for global oil and gas supplies.
Tensions have escalated after Iran reportedly targeted ships passing through Oman. Iran's Revolutionary Guards said two oil tankers exploded and stopped moving after attempting to cross a route Tehran had previously warned them about.
Impacting the market, news of diplomacy could curb the short-term surge in oil prices. However, as long as the Strait of Hormuz remains a source of conflict and tankers remain threatened, oil prices have the potential to remain volatile. The US dollar could still be supported by safe-haven sentiment, while gold has the potential for limited gains as the market is also concerned about energy inflation and high interest rates. (arl)
Source: Newsmaker.id
