‘Under review’
“We’ve had very good talks over the last 24 hours, and it’s very possible that we’ll make a deal,” Trump told reporters on Wednesday, adding his now habitual threat to return to bombing if Tehran refuses to back down to US demands.
Iran’s foreign ministry spokesperson Esmaeil Baqaei said the US proposal remained “under review” and Tehran would communicate its position to mediator Pakistan “after finalizing its views.”
According to a report from US network NBC News, Trump’s U-turn came after Saudi Arabia — whose Crown Prince Mohammed bin Salman reportedly talked directly to Trump — refused to allow US forces to use its airspace and bases for the operation to force passage through Hormuz.
US news outlet Axios, citing two officials, reported that both Tehran and Washington were close to agreement on a one-page memorandum of understanding to end the war and set a framework for negotiations on Iran’s nuclear program.
Oil prices fall
Oil prices fell again, tumbling by two percent Thursday — having fallen around 10 percent over the previous two days — and Tokyo’s Nikkei index led another strong rally across Asia stocks, fuelled by revived optimism that the talks will bear fruit.
Energy prices are still much higher than before the conflict, but international standard Brent and US benchmark West Texas Intermediate are both now below the symbolic $100 level.
Markets have been particularly concerned about the Strait of Hormuz, which in peacetime carries a fifth of the world’s oil and LNG trade as well as a good chunk of its fertilizer.
Fears surged on Monday when the South Korean cargo ship HMM Namu caught fire while attempting to transit the channel despite Iran’s blockade.
