On Monday, Iranian President Masoud Pezeshkian said the government had been granted more authority by the Supreme Leader to pursue peace talks in external communications. The remarks came as tensions in the Middle East tightened again, with markets previously worried that the conflict between the United States, Israel and Iran could escalate anew. Pezeshkian said Iran was trying to resolve issues through dialogue and that the Supreme Leader had granted the government certain powers, but he did not specify the boundaries of those powers or explain whether Iran would adjust its longstanding positions during indirect contacts with the United States.
Donald Trump then said the White House was willing to enter negotiations and suggested that related communications had made progress, without providing details or evidence. Speaking in Washington, he said the other side wanted to reach a deal and that it was possible. He also attributed the drop in oil prices to the market’s view that the situation was improving, saying people had learned of the development. When asked whether the United States would resume military strikes against Iran after the midterm elections, Trump gave a clear no.
Brent crude extended losses on Monday, falling as much as nearly 10% intraday, and was quoted at just below $106 a barrel at 3 p.m. London time.
Meanwhile, regional countries have stepped up mediation efforts to try to prevent another clash between the United States and Iran after months of relative calm. Senior officials from Saudi Arabia, Turkey and Pakistan traveled to Tehran last week, while Qatari mediators held separate talks with the Iranian side over the weekend.
However, clear differences remain between Tehran and Washington. Iran is demanding that the United States lift a naval blockade of Iranian ports, ease sanctions and unfreeze assets before reopening the strategically important Strait of Hormuz and restoring maritime shipping. The United States, in turn, is pressing Iran to make concessions on its nuclear program. Iranian Foreign Minister Abbas Araghchi, speaking during a visit to Turkmenistan, said that given the sensitivity of the current situation, consultations and discussions among the parties had become exceptionally intense. He said Iran had put forward its own terms and proposals, adding that everything depended on whether Washington possessed political rationality; if the U.S. side attempted to deceive Iran or take military action, Iran would face a harsher response than ever before.
Some analysts believe the negotiating authority granted by the Supreme Leader to the government is limited in scope and still accompanied by red lines. Tehran is willing to negotiate an end to the war but is seeking not a short-term ceasefire but a durable arrangement that can restore its deterrence capability. Notably, while Iran has been signaling openness to diplomacy, the Supreme Leader has also ordered senior military commanders to prepare for renewed confrontation with the United States and Israel and to broaden retaliation options. That move has deepened concerns among Gulf Arab states, which fear that a better-prepared Iran could spark a more destructive conflict across the region and force neighboring countries to bear the consequences.
Trump has previously said on multiple occasions that he would resolve the Iran conflict in some way, and he has also threatened at different times that military strikes could resume after the U.S. midterm elections.
