According to AFP on May 26, as negotiations between the United States and Iran over tensions in the Middle East continue to move forward, the Iranian government warned Monday that although progress has been made on some issues, the two sides are still “not close” to reaching a final agreement. Meanwhile, U.S. President Donald Trump also said he is not in a hurry to sign a deal.
Global markets reacted sensitively to the outlook for negotiations. After U.S. Secretary of State Marco Rubio earlier suggested that “an agreement could be reached as early as today,” international oil prices briefly fell sharply, as markets bet that conditions around the Strait of Hormuz could stabilize. However, Iranian Foreign Ministry spokesman Esmaeil Baqaei quickly cooled expectations, emphasizing that “no one can make such a claim” that the signing of an agreement is imminent.
US-Iran talks face divisions; Iran says ‘many issues remain unresolved’
Since the two sides reached a ceasefire on April 8, the United States and Iran have maintained a fragile peace while diplomatic efforts continue toward a political solution. Although direct military clashes between U.S. forces and Iranian-backed armed groups have temporarily ceased, Iran continues to maintain shipping controls in the Strait of Hormuz, while the U.S. Navy keeps a strong presence in the Persian Gulf.
Speaking to reporters during a visit to New Delhi, India, Rubio said the U.S. had presented “a fairly solid proposal,” focused on reopening the Strait of Hormuz and restoring international shipping security. He stressed that Washington prefers a diplomatic solution but retains “other options” if needed.
Iran, however, appeared unwilling to sound overly optimistic. Speaking at a press conference in Tehran, Baqaei said that while consensus had been reached on “a significant portion of issues,” substantial gaps remain before any final agreement can be signed.
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He also emphasized that Iran would continue imposing service fees on shipping through the Strait of Hormuz but denied characterizations that Iran was effectively charging “tolls.”
Israel presses for complete elimination of Iran’s nuclear capabilities
Beyond Washington and Tehran, regional allies are also shaping negotiations.
Israeli Prime Minister Benjamin Netanyahu said Sunday that he had spoken with Trump and both agreed that “any final agreement with Iran must eliminate the nuclear danger.” The Times of Israel reported that Israeli officials worry Washington could make excessive concessions on nuclear issues in an effort to quickly resolve the crisis.
According to Iranian officials, the long-standing U.S. demand that Iran halt uranium enrichment activities has effectively been set aside for now, with both sides prioritizing an initial-stage ceasefire and shipping agreement, Reuters reported.
Ali Vaez, Iran project director at the International Crisis Group, argued that although Iran has managed to maintain regime stability under military pressure and may portray the outcome domestically as a “victory,” its economy has suffered severe damage.
He said Iran will require hundreds of billions of dollars to rebuild infrastructure and restore economic stability, while the United States has also expended enormous resources managing the crisis.
Vaez told AFP that both sides may ultimately settle for “a vague and fairly general memorandum of understanding,” centered primarily on restoring Strait of Hormuz shipping rather than resolving the nuclear dispute itself.
Beijing participates in international mediation
According to Reuters, as negotiations enter a critical phase, Pakistani Prime Minister Shehbaz Sharif met Chinese leader Xi Jinping and Premier Li Qiang in Beijing on Monday. Pakistan is increasingly viewed as an important intermediary between Washington and Tehran. Pakistan’s Army Chief General Asim Munir had recently visited Tehran.
Pakistan state broadcaster PTV reported that Sharif told Chinese leaders that “the world is passing through a critical moment,” and that “developments are moving in the right direction.”
Saudi Arabia, the United Arab Emirates, Qatar, Egypt, Jordan, Bahrain, Turkey, and Pakistan also reportedly held discussions with Trump over the weekend regarding the status of U.S.-Iran negotiations.
The Wall Street Journal reported that Middle Eastern countries are most concerned about the possibility that further escalation could severely disrupt global energy transportation.
Oil prices swing sharply as markets bet on Strait of Hormuz stability
International oil markets have experienced major volatility in recent months due to both military tensions and diplomatic developments.
After U.S. and Israeli strikes against Iran in late February, Iran responded with missile and drone attacks against regional targets, sharply increasing energy market concerns. Although the Strait of Hormuz was never fully closed, shipping risks rose substantially.
However, renewed market optimism Monday regarding a possible agreement pushed oil prices lower. Brent crude and U.S. West Texas Intermediate (WTI) crude dropped to around $99 and $92.10 per barrel, respectively, with both benchmarks falling nearly 5 percent on the day.
