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Oil prices rise amid stalled US-Iran peace talks

Mediators indicate that negotiations are still active, even as disagreements over key issues

WASHINGTON

Efforts to ease tensions between the United States and Iran continue behind the scenes despite a breakdown in direct diplomatic engagement.
Mediators indicate that negotiations are still active, even as disagreements over key issues, particularly Iran’s nuclear ambitions, keep both sides at a distance.

Sources from Pakistan, which has been acting as a mediator, confirmed that diplomatic channels remain open between Washington and Tehran. However, hopes for a breakthrough suffered a setback after former US President Donald Trump abruptly cancelled a planned visit by his envoys to Islamabad. The visit was expected to facilitate face-to-face discussions with Iranian representatives, marking a critical step toward de-escalation.

Iranian officials have reportedly proposed a phased approach to negotiations. According to sources in Tehran, the initial priority would be to halt ongoing hostilities and address disruptions to shipping in the strategically vital Strait of Hormuz. Broader discussions, including those concerning Iran’s nuclear program, would be deferred to a later stage. This proposal, however, appears unlikely to satisfy US demands, which insist that nuclear issues must be addressed upfront as a precondition for any agreement.

Diplomatic activity over the weekend highlighted both urgency and complexity. Iranian Foreign Minister Abbas Araqchi made multiple visits to Islamabad while also traveling to Oman, another key player in regional mediation efforts. On Monday, he arrived in Russia to meet President Vladimir Putin, a longstanding ally of Tehran, in a move seen as strengthening Iran’s diplomatic backing.

Meanwhile, economic repercussions are becoming evident. Global oil markets reacted swiftly to the continued uncertainty, with Brent crude prices rising approximately 2.5 percent to around $108 per barrel. The increase reflects concerns over potential disruptions in one of the world’s most critical energy corridors.

Speaking in a televised interview, Trump reiterated Washington’s stance, emphasizing that Iran must abandon any pursuit of nuclear weapons before meaningful talks can proceed. He suggested that communication channels remain open, but made it clear that the terms for engagement are non-negotiable.

As both sides remain entrenched in their positions, the path to a diplomatic resolution appears increasingly uncertain, leaving global markets and regional stability hanging in the balance.

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