Key facts
- Iran denies progress in talks with the US to revive an interim peace deal.
- An Iranian official stated the deal had no start date and was violated by the US.
- The interim deal agreed in June quickly unravelled, with the US and Iran accusing each other of reneging on commitments.
- Attacks on shipping in the Red Sea and off Pakistan compounded concerns over disruptions to Gulf oil supplies.
- Brent crude futures saw choppy trade, rising to $89.26 a barrel.
Iran and the United States remain at odds over efforts to establish a permanent end to the conflict in the Gulf, with a senior Iranian source indicating no progress has been made in reviving an interim deal agreed upon in June. This development deals a blow to hopes for a swift resolution, particularly following recent attacks on shipping that led to a rise in oil prices.
The June agreement stipulated an 'immediate and permanent termination of military operations on all fronts,' but it quickly faltered. U.S. President Donald Trump declared it 'over' on July 7, and Iran's foreign ministry announced it was 'suspended' a week later. The U.S. accuses Iran of failing to uphold its commitment to reopening the Strait of Hormuz shipping route, while Tehran contends that Washington has not fulfilled its obligations, including lifting sanctions on Iranian ports and releasing frozen assets.
A senior Iranian official dismissed reports suggesting an extension of the 60-day interim period, stating that from Iran's perspective, the agreement had no defined start date and had been violated by the U.S. shortly after its inception. Both nations have intensified their rhetoric recently. Iran's top security official warned that the Strait of Hormuz would remain closed unless the U.S. met Iran's conditions for ending the war. President Trump, meanwhile, demanded compensation from Iran for past conflicts.
The Strait of Hormuz, a critical waterway for global oil and liquefied natural gas transport, has been a focal point of tensions. Benchmark Brent crude futures have experienced volatile trade, reflecting concerns over potential disruptions. These worries were amplified by recent attacks on shipping, including a deadly strike by Iran-backed Houthis on a cargo ship in the Red Sea and an incident involving a U.S. Navy helicopter disabling a cargo ship off Pakistan.