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New Delhi: Turning the months-long war between the United States and Iran into peace is up in the air as U.S. President Donald Trump said a treaty could be done as soon as this weekend. But tensions are high in the strategically important Strait of Hormuz, which are crucial for the world’s oil supplies.
Speaking at the ceremony on Thursday, Trump stated that he still thinks there is a “great settlement” around the corner and hopes that the Strait of Hormuz will open soon once the deal is completed. The waterway has been massively affected by the war and has become an issue for global oil supply and energy pricing.
One of the world’s most critical shipping routes, the Strait of Hormuz sees a high proportion of oil transport from around the world. The prices of fuel and international trade have been directly affected by disruptions in the area. But Iranian leaders have been more sanguine about Trump’s optimism. Tehran stated that final selections have yet to be made and some key provisions in the proposed agreement have yet to be analyzed. During the talks with Iran, the leaders have repeatedly emphasized that they won’t violate any of their “red lines.
Reports say Iran wants sanctions lifted and has frozen assets and recognition for its rights to the Strait of Hormuz. Meanwhile, the United States has stuck to the statement that thwarting Iran’s ability to achieve nuclear weapons will always be central to a deal.
Diplomatic negotiations are ongoing, but there are no signs of an end to military tensions. In recent times, drone interceptions and limits on tanker movements in and around the Strait have been in the news. The developments have underscored the precarious situation.
There was a positive reaction from the financial markets to any sign of possible peace. Investors grew more confident that the disruption to energy supplies may be on the brink of ending, pushing oil prices down on Friday. Fears of a broader conflict subsided and global stock markets rose as well.
Some of the regional countries, such as the United Arab Emirates (UAE) and Saudi Arabia, are said to be backing the scheme. But Israel has said there is no direct Israeli involvement in the talks and that they are more concerned with Israel’s own security worries about Iran.
Although both sides seem to be closer to their agreement than they were many months ago, there are still significant differences. The next few days will be pivotal in deciding whether the U.S. and Iran can finally establish a pact that could help establish one of the world’s most important energy corridors and put the region on a path of peace.
English (US) ·