Washington: U.S. President Donald Trump has directed American negotiators to proceed cautiously in peace talks with Iran, emphasizing that the current naval blockade of Iranian shipments in the Strait of Hormuz will remain until a definitive agreement is finalized and signed.
According to Thai News Agency, President Trump has tempered expectations for a swift resolution to the ongoing conflict in the Persian Gulf, which has persisted for over three months. He indicated, via the Truth Social platform, that the negotiation process is constructive but requires deliberate time to avoid errors. Trump reiterated that the blockade would continue until an agreement is conclusively ratified.
A preliminary framework agreement had reportedly been reached, outlining conditions for free passage through the Strait of Hormuz in exchange for the U.S. lifting the naval blockade, coupled with Iran's disposal of its enriched uranium stockpile. The negotiations are expected to extend for another 60 days to finalize the details. If the nuclear verification process is successful, Iran could receive temporary sanctions relief on its oil, gas, and petrochemical exports, along with the release of substantial assets frozen in foreign banks.
The proposed agreement has met resistance from hawkish Republican senators, including Ted Cruz and Roger Vickers, who argue that the framework is overly lenient towards Iran and may result in funds being rerouted to proxy militant groups. Meanwhile, Iran's Tasnim news agency has reported continued U.S. obstruction of certain agreement aspects, particularly concerning Iran's demand for the release of frozen overseas funds. Senior U.S. officials have also noted the slow progress on Iran's part in advancing towards a significant agreement.
The prospect of a positive resolution in the U.S.-Iran negotiations has led to a significant drop in crude oil prices, with Brent crude for July delivery falling over 5% in Asian trading. The potential reopening of energy shipping routes through the Strait of Hormuz has eased short-term supply tensions. However, analysts from MST Marquee caution that the global oil market is likely to remain constrained until 2027, due to the need for extensive repairs to regional infrastructure and refineries damaged by previous conflicts.