Qatari shuttle diplomacy between the United States and Iran made little progress this week, with neither side willing to move, according to Axios. Trump denied reports that he offered Iran sanctions relief, and US officials now think he could order a return to major combat once the midterm elections pass.
Qatari mediators failed to break the deadlock between the United States and Iran this week, and US officials now believe Trump could order a return to major combat once the midterm elections pass, according to three people familiar with the talks. Qatari mediator Ali al-Thawadi met Iranian Foreign Minister Abbas Araghchi in New York on Monday, then held talks in Washington with Trump envoy Jared Kushner, with Vice President JD Vance attending part of the meeting.
Qatari plan targets blockade and nuclear demands
The two-page Qatari compromise aims to address Iran's demand to lift the US naval blockade and Washington's demand for nuclear concessions. Iran says it will consider nuclear concessions only after the US agrees to return to the June memorandum of understanding. Meanwhile, Secretary of the Supreme National Security Council Mohsen Rezaei said Trump is unable to decide, describing him as caught between negotiating and fighting.
Trump denies sanctions relief offer
US officials had briefed reporters that Monday's talks were positive and that Trump was willing to offer sanctions relief and release frozen funds in exchange for concrete nuclear steps. Hours later, while the Qatari delegation was still at the White House, According to Reuters: "This is untrue. I offered them NOTHING," Trump wrote on Truth Social. The war between the two countries is now in its eighth month.
Oil flows recover as Iran's leverage fades
Oil prices settled 2.5% lower on Tuesday as investors focused on recovering crude oil exports from the Middle East. Washington also offered to loan energy companies up to 40 million barrels from the Strategic Petroleum Reserve. A Wall Street Journal report cited by Crypto Briefing found that oil flow through the strait and alternative routes has returned to 80% of pre-conflict levels, a shift that erodes Iran's leverage over the waterway even as it keeps the market's risk premium elevated.
Washington also stepped up economic pressure, sanctioning 10 individuals and entities, including some based in China, Hong Kong and Pakistan for helping Iran procure weapons and components. Qatari officials say they will keep trying to bridge the gap, but two sources described them as increasingly frustrated with both sides.
Sources: InvestingLive, Reuters, Crypto Briefing
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