OIL PRICES TUMBLE
Reports of a possible agreement caused global oil prices to tumble to two-week lows, with benchmark Brent crude futures falling around 11 per cent to around US$98 a barrel at one point before rising back above the US$100 mark.
Global share prices also leapt and bond yields fell on optimism about an end to a war that has disrupted energy supplies. Trump on Tuesday paused a two-day-old naval mission to reopen the blockaded strait, citing progress in peace talks.
The US military has kept up its own blockade on Iranian ships in the region. US Central Command said forces fired at an unladen Iranian-flagged tanker on Wednesday, disabling the vessel as it attempted to sail toward an Iranian port in violation of the blockade.
NO MENTION OF KEY US DEMANDS
The source briefed on the mediation said the US negotiations were being led by Trump’s envoy Steve Witkoff and son-in-law Jared Kushner. If both sides agreed on the preliminary deal, that would start the clock on 30 days of detailed negotiations to reach a full agreement.
The full agreement would end the competing US and Iranian blockades on the strait, lift US sanctions and release frozen Iranian funds. It would also include some curbs on Iran’s nuclear programme, with the aim of a pause or moratorium on Iranian enrichment of uranium.
While the sources said the memorandum would not initially require concessions from either side, they did not mention several key demands Washington has made in the past, which Iran has rejected, such as curbs on Iran’s missile programme and an end to its support for proxy militias in the Middle East.
The sources also made no mention of Iran’s existing stockpile of more than 400kg of near-weapons-grade uranium.
Israeli Prime Minister Benjamin Netanyahu, Trump’s ally against Iran, said on Wednesday the two leaders agreed that all enriched uranium must be removed from Iran to prevent it from developing a nuclear bomb.
Tehran denies wanting to acquire a nuclear weapon.
