Washington, United States. President Donald Trump predicted a swift end to the war with Iran as Tehran considered a U.S. peace proposal that sources said would formally end the conflict while leaving key U.S. demands unresolved.
Trump signals optimism as Iran weighs proposal
Trump told reporters in the Oval Office on Wednesday that Iran wanted to make a deal and that talks over the last 24 hours had been very good. He later said the conflict would be over quickly.
An Iranian foreign ministry spokesperson cited by Iran’s ISNA news agency said Tehran would convey its response. Iranian lawmaker Ebrahim Rezaei, a spokesperson for parliament’s foreign policy and national security committee, described the proposal as more of an American wish-list than a reality.
Sources cite one-page memorandum to end conflict
A Pakistani source and another source briefed on the mediation said an agreement was close on a one-page memorandum that would formally end the conflict.
The sources said the memorandum would begin discussions to unblock shipping through the Strait of Hormuz, lift U.S. sanctions on Iran and set curbs on Iran’s nuclear programme.
Key issues remain in dispute
Trump has repeatedly highlighted the possibility of an agreement to end the war that started on February 28, without success so far.
The two sides remain at odds over issues including Iran’s nuclear ambitions and its control of the Strait of Hormuz, which before the war handled one-fifth of the world’s oil and gas supply.
Iranian parliament speaker dismisses reports
Iran’s parliament speaker Mohammad Baqer Qalibaf appeared to mock reports that the two sides were close, writing on social media in English that “Operation Trust Me Bro failed.”
Qalibaf said the reports amounted to U.S. spin following its failure to open the Strait of Hormuz.
Markets react to reports of possible agreement
Reports of a possible agreement drove global oil prices to two-week lows on Wednesday, with benchmark Brent crude futures falling about 11% to around $98 a barrel at one point before rising back above $100.
Global share prices rose and bond yields fell on optimism about an end to the war, which has disrupted energy supplies.
“The contents of the U.S.-Iran peace proposals are thin, but there is an expectation in the market that further military action will not take place,” said Takamasa Ikeda, a senior portfolio manager at GCI Asset Management.
How do you think a possible agreement could affect energy markets in the coming weeks?