Hopes that mediation could end the war between Iran and the United States pushed oil lower on Monday. Talks with Qatari mediators produced no breakthrough, though contacts continue, and Iranian sources think a new US attack is more likely than a deal.
Oil prices fell nearly 4% on Monday on hopes that the latest round of mediation could lead to a diplomatic solution to the Iran war. Iranian sources, however, said they believed a new US attack was still more likely than a deal.
Tehran said contacts with the United States to end the eight-month war are continuing, after days of talks with Qatari mediators ended with altered proposals but no breakthrough. According to Iranian Foreign Minister Abbas Araqchi, in comments carried by state media outlet IRNA: "Consultations through mediators are very intensive."
Iran condenses its seven-step plan
Foreign Ministry spokesperson Esmaeil Baghaei said the plan Iran submitted in September remains the focus of discussions. He said the seven-step proposal is now condensed, making it possible to implement it within two days. US President Donald Trump rejected the proposal in September.
The plan would call for the US to end its blockade on Iranian ports and for Iran to reopen the Strait of Hormuz. It also includes a US waiver on Iranian oil sales, the cancellation of new sanctions and then talks on other issues.
Baghaei added that a return to talks on Iran's nuclear programme could only happen after Iran verified that all its conditions were met.
China and Russia warn against renewed strikes
Amid fears the conflict could reignite after Tuesday's US midterm elections, China and Russia both spoke out against renewed military action. Trump has repeatedly said there would be no new attack on Iran before the vote.
China's Foreign Minister Wang Yi said all parties should focus on political solutions rather than resort to arms again. In Moscow, the Russian Foreign Ministry called reports of new military action a cause for extreme concern.
Risks to energy supply remain visible: a Qatari liquefied natural gas tanker was struck in the Gulf by unidentified objects on Friday, its operator Nakilat said.
Source: Reuters via Investing.com
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