The prices of oil futures declined on Wednesday, with West Texas Intermediate (WTI) falling more than 7% and slipping below the $95 mark after reports that Iran and the US were getting close to a one-page memo to end the war. US officials are said to be expecting Iran’s response to several key points in the next 48 hours, which will see both sides lifting restrictions around transit through the Strait of Hormuz. Also, Tehran will cease nuclear enrichment for over a decade in exchange for the US lifting sanctions and releasing billions in Iranian frozen assets. West Texas Intermediate (WTI) for settlements in June fell by 7.46% at 5:21 am ET to $94.64 per barrel. Meanwhile, Brent for July’s deliveries went down by 6.56% to $102.66.
US, Iran said to be closest to deal since war started
The White House is nearing a one-page Memorandum of Understanding (MOU) with Iran to end the conflict and launch nuclear negotiations, Axios reported on Wednesday, citing sources, which added that the parties were at their closest point to reach a deal since the start of the conflict. Under the proposal, Iran would have to accept enhanced UN inspections, stop nuclear enrichment for 12 years, possibly 15 years, maybe transfer highly enriched uranium overseas, and limit subterranean facilities. On the other end, the US would gradually remove sanctions and freeze billions of dollars’ worth of Iranian assets. The outlet said that Iran is expected to respond within 48 hours, though no deal is finalized. Earlier, US President Donald Trump paused escalation plans, citing progress in talks with the Islamic Republic.
NN: Not so fast. A memorandum is NOT a piece deal. And oil retracing it weekly move from $112 to $100 is still a $40 upward move from $60 where all this started. And i don’t see any oil flowing yet. And to make life a little more interesting Iran has not agreed.
US says Iran ceasefire holds despite exchange of fire; UAE under attack
The United Arab Emirates said it was under attack from Iranian missiles and drones on Tuesday, even as Washington said a shaky ceasefire was intact despite an exchange of fire the previous day as U.S. forces attempted to force open the Strait of Hormuz.
The U.S. military said it had destroyed six Iranian small boats, as well as cruise missiles and drones, after President Donald Trump sent the navy to escort stranded tankers through the strait in a campaign he called “Project Freedom”.
U.S. Defense Secretary Pete Hegseth said the operation to protect commercial ships was temporary and the four-week-old truce was not over. “We’re not looking for a fight,” he told a press conference. “Right now the ceasefire certainly holds, but we’re going to be watching very, very closely.”
Iran fired missiles at U.S. ships on Monday and attacked the UAE, a key regional ally of Washington, with missiles and drones. After issuing a new map of the Strait of Hormuz with an expanded Iranian area of control, Iran’s Revolutionary Guards warned vessels on Tuesday to stick to the corridors it had set or face a “decisive response”.
Trump said Iran’s military had been reduced to firing “peashooters” and Tehran wanted peace, despite public sabre-rattling. “They play games, but let me just tell you, they want to make a deal,” he told reporters in the Oval Office.
Shortly after Hegseth spoke on Tuesday, the UAE’s defence ministry said its air defences were again dealing with missile and drone attacks coming from Iran. The Gulf Arab state’s foreign ministry said in a statement that the attacks were a serious escalation and posed a direct threat to the country’s security, adding that the UAE reserved its “full and legitimate right” to respond. Several merchant ships in the Gulf reported explosions or fires on Monday, and an oil port in the UAE, which hosts a large U.S. military base, was set ablaze by Iranian missiles. Iran also said it fired warning shots at a U.S. warship approaching the strait, forcing it to turn back.
Reuters could not independently verify events in the strait as the two sides issued contradictory statements. General Dan Caine, the chairman of the U.S. Joint Chiefs of Staff, said Iranian attacks against U.S. forces fell “below the threshold of restarting major combat operations at this point”.
Trump: Iran to ‘be blown off’ if it attacks US ships
United States President Donald Trump warned in an interview with Fox News on Monday that Iranians will “be blown off the face of the earth” if they attack US vessels escorting other ships through the Strait of Hormuz. The US head of state previously announced Project Freedom, an operation aimed at guiding stranded vessels out of the Strait of Hormuz. Trump said that Washington launched the mission to assist more than 200 vessels and 20,000 sailors trapped in the Persian Gulf, and described the operation as humanitarian. He stressed that the US blockade of Iranian ports is “the greatest military maneuver in history.” Trump further claimed that Tehran is now “far more malleable” in ongoing negotiations. The US president also ensured that the US bases are “loaded” with gear and ammunition, adding that the US has more ammunition than before.
Iran said to hit US warship with two missiles in Hormuz
A United States Navy frigate was hit by two missiles while it was sailing through the Strait of Hormuz after it ignored the warnings from Iran’s Navy, Iranian semi-official news outlet Fars News Agency reported on Monday. The report claimed that the frigate was forced to retreat and flee from the area after being hit, although the extent of the damage was not clear. The missile strikes follow the warnings from Tehran that any attempt by the United States to interfere in the Strait of Hormuz would be seen as ceasefire violations, after US President Donald Trump previously announced that his country will escort vessels stuck in the Persian Gulf. Meanwhile, Iran’s Revolutionary Guards Corps (IRGC) Navy revealed a new map showing the area of the critical Middle Eastern waterway that is under Iranian military control.
Shortly after, a senior US official denied that a US ship was hit by Iranian missiles, according to Axios.
Trump Vows to Maintain Pressure on Iran Through Naval Blockade
US President Donald Trump vowed to maintain a naval blockade on Iran and was briefed by commanders on further military options, according to a report, underscoring the fragility of the ceasefire between the warring countries Trump reiterated that the blockade of Iranian ports is depriving the Islamic Republic of much-needed oil revenue, claiming the pressure would force Tehran back to the negotiating table. “Good luck blockading a country with those borders,” Iran’s speaker of parliament, Mohammad Bagher Ghalibaf, said on X, referring to his country’s large size. He and other Iranian officials say the blockade, which they insist must be lifted for the sides to go to new talks and for the Strait of Hormuz to be reopened, will further push up oil prices. Trump was briefed at the White House on Thursday by the head of US Central Command, which oversees American forces in the Middle East, and Dan Caine, the chairman of the Joint Chiefs of Staff, according to Axios, which cited two unnamed US officials. Axios reported earlier that Centcom had prepared a plan for a brief wave of strikes to break the negotiating deadlock. The US is pitching allies on a joint naval force to secure the Strait of Hormuz. New Zealand said it had received the proposal but would only support a US-led coalition if a sustainable ceasefire was in place. The effort, called the “Maritime Freedom Construct,” was spelled out in a State Department cable to US embassies on Tuesday that called on diplomats to press foreign governments into signing up, the Wall Street Journal reported. On Thursday, Iran’s new supreme leader, Mojtaba Khamenei, cast doubt on the likelihood of a deal. He gave a rare statement in which he vowed not to give up the country’s nuclear or missile technologies. He also signaled Tehran would keep control of the Hormuz strait.
NN: Technically its no longer a war since their is a cease fire. Its now a naval blockade. Not covered under the war powers act. Forget the politics, Of the last 5 wars the US fought, only one was declared WWII. Is there any doubt that Iran is a evil empire that must be stopped?
UAE says Iran cannot be trusted over Hormuz, peace efforts at an impasse
A senior United Arab Emirates official said on Friday Tehran could not be trusted over any unilateral arrangements it makes for the Strait of Hormuz, in a sign of deep mistrust on all sides as efforts to end the Iran war remained at an impasse. Two months into the conflict, the vital sea channel is still largely closed because of an Iranian blockade and the U.S. Navy is blocking exports of Iranian crude oil. The blockade has choked off 20% of the world’s oil and gas supplies, pushing up global energy prices and increasing concerns that there will be an economic downturn.
The Reuters Iran Briefing newsletter keeps you informed with the latest developments and analysis of the Iran war. Sign up here. A ceasefire has been in place since April 8 but reports that U.S. President Donald Trump was to be briefed on plans for new military strikes to compel Iran to negotiate pushed global oil prices up to a four-year high at one point on Thursday. Iran has activated air defences and plans a wide response if attacked, having assessed that there will be a short, intensive U.S. strike, possibly followed by an Israeli attack, two senior Iranian sources told Reuters on condition of anonymity. Underlining the concerns of the Gulf states, UAE presidential adviser Anwar Gargash said the “collective international will and provisions of international law” were the primary guarantors of freedom of navigation through the strait. “And, of course, no unilateral Iranian arrangements can be trusted or relied upon following its treacherous aggression against all its neighbors,” Gargash wrote. Global oil benchmark Brent crude futures rose again on Friday, up slightly at over $111 a barrel and poised for a 5.7% gain over the week after hitting $126 a barrel on Thursday, the highest level since March 2022.
IRAN SAYS NOT TO EXPECT QUICK RESULTS FROM TALKS
Iranian Foreign Ministry spokesman Esmaeil Baghaei cautioned on Thursday against expecting quick results from talks.
A senior official of Iran’s Revolutionary Guards said any new U.S. attack on Iran, even if limited, would usher in “long and painful strikes” on U.S. regional positions, while Aerospace Force Commander Majid Mousavi was quoted by Iranian media as saying: “We’ve seen what happened to your regional bases, we will see the same thing happen to your warships.”
Trump repeated on Thursday that Iran would not be allowed to have a nuclear weapon, and said the price of gasoline – an important concern for his Republican Party before midterm elections in November – would “drop like a rock” as soon as the war ended.
Iran says its nuclear programme is solely for civilian purposes.
Trump said on Thursday that Iran’s economy was “a disaster”, but analysts said that if he expects Iran to blink first in a game of economic chicken, he may be waiting a while.
The conflict has aggravated Iran’s dire economic problems, risking calamity after the war, but it looks able to survive a standoff in the Gulf for now, despite the U.S. blockade that has cut off its energy exports.
Axios news site reported that one plan to be shared with Trump during a briefing by top U.S. military leaders that was scheduled for Thursday involved using ground forces to take over part of the strait to reopen it to commercial shipping. Trump is also considering extending the U.S. blockade or declaring a unilateral victory, officials have said.
Washington did not immediately announce any details of its plans.
In a sign that the U.S. was also envisaging a scenario where hostilities cease, a State Department cable due to be delivered orally to partner nations by May 1 invited them to join a new coalition, called the Maritime Freedom Construct, to enable ships to navigate the strait.
France, Britain and others have held talks on contributing to such a coalition but said they would help to open the Strait only when the conflict ends.
Reporting by Reuters bureaus, Writing by Timothy Heritage, Editing by Gareth Jones
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US seeks international help to reopen Strait of Hormuz as crude prices surge
The U.S. is pushing for other countries to form an international coalition to restore freedom of navigation in the Strait of Hormuz, according to a State Department cable, as oil prices surged to their highest in more than four years on fears of longer-term disruptions to global fuel supplies.
Two months into the war that started with U.S.-Israeli strikes on Iran, the vital sea channel remains closed, choking off 20% of the world’s supplies of oil and gas. That has sent global energy prices surging and heightened concerns about the risks of an economic downturn. Efforts to resolve the conflict have hit an impasse, which the United States is trying to unlock with a naval blockade of Iran’s oil exports, the country’s economic lifeline. With talks stalled, U.S. President Donald Trump is slated to receive a briefing on Thursday on plans for a series of fresh military strikes on Iran in hopes it will return to negotiations, according to an Axios report late on Wednesday. That spurred big gains in oil prices, with the benchmark Brent crude contract topping $125 a barrel at one point, partly on technical factors related to the expiry of the contract later on Thursday. Since the start of the year, Brent prices have more than doubled, rising on Thursday to their highest since March 2022, fuelling inflation and sending pump prices to politically painful levels worldwide. Tehran warned on Wednesday of “unprecedented military action” against continued U.S. blockading of Iran-linked vessels. Trump has said Iran cannot have a nuclear weapon, while Tehran says its nuclear ambitions are peaceful. “They don’t know how to sign a non-nuclear deal. They’d better get smart soon!” Trump said in a social media post on Wednesday, without explaining what such a deal would entail.
The post featured a mock-up image of him wearing dark glasses and wielding a machine-gun, captioned, “No more Mr. Nice Guy.” With Washington and Tehran trading public threats, mediator Pakistan was trying to avoid escalation while the two sides exchange messages on a potential deal, a Pakistani source said on Wednesday. The State Department cable said the United States was inviting other countries to join a new international coalition that would enable ships to navigate the Strait of Hormuz after traffic through the waterway stalled. The proposed coalition, dubbed the “Maritime Freedom Construct”, would share information, coordinate diplomatically and help enforce sanctions, the cable showed. Tehran has largely blocked all shipping apart from its own from the Gulf through the Strait of Hormuz, since the U.S. and Israel began airstrikes on Iran on February 28. The U.S. began its blockade this month. Iran no longer has a single, undisputed clerical arbiter at the pinnacle of power since the strikes killed several senior political and military figures, including Supreme Leader Ayatollah Ali Khamenei.
The elevation of Khamenei’s wounded son, Mojtaba, to replace him has handed more power to hardline commanders of the elite Islamic Revolutionary Guard Corps, Iranian officials and analysts say.
NN: It is sick joke as reserves are falling the global “leadership” refuses to force open the straights to free navigation. To allow Iran to hold the world the world hostage clearly show the Europeans have no balls. They will pay a heavy price for this staidness
Trump rejects Iran’s offer, keeps naval blockade
United States President Donald Trump told Axios in a part of an interview published on Wednesday that he has officially rejected Iran’s proposal for a ceasefire deal, insisting that the deal must include an article that would prevent Tehran from obtaining a nuclear weapon. Trump told the outlet that the US naval blockade of the Strait of Hormuz proved to be “somewhat more effective than the bombing.” “They are choking like a stuffed pig. And it is going to be worse for them. They can’t have a nuclear weapon,” he remarked. Moreover, Trump insisted that Iran’s oil storage units are “getting close to exploding” because the commodity is not being exported, which is why “they want to settle. They don’t want me to keep the blockade.” “I don’t want to [lift the blockade], because I don’t want them to have a nuclear weapon,” he stressed, adding that airstrikes would resume if necessary.
Brent jumps 7% to highest since June 2022
Oil prices continued to soar on Wednesday, with Brent jumping over 7% to hit the highest price since June 2022, after US President Donald Trump declared that Washington rejected Iran’s latest peace proposal. Instead of lifting the blockade of the Strait of Hormuz, the American leader claimed that keeping the waterway closed is “somewhat more effective than the bombing,” connecting his refusal to act with claims that Iran must not have a nuclear weapon.
Brent for June’s deliveries advanced by 7.23% at 1:12 pm ET to $119.56 per barrel. A minute later, West Texas Intermediate for the same month’s settlements surged by 7.44% to $107.30.