Iran’s foreign ministry confirms ongoing mediator talks, easing near-term supply disruption fears despite Strait of Hormuz stance.
Crude oil prices edged lower after Iran’s foreign ministry spokesperson indicated diplomatic efforts with the U.S. remain active, despite recent military exchanges. Esmaeil Baghaei said Tehran is considering proposals from mediators and has exchanged messages in recent days, signaling openness to negotiations based on national interests.
The remarks follow the collapse of a ceasefire and renewed hostilities, with Pakistan, Qatar, and Oman facilitating contacts. However, Iran reiterated its non-negotiable stance on sovereign rights over the Strait of Hormuz, a key chokepoint for global oil shipments. Markets had priced in elevated risk premiums amid fears of escalation.
Risk sentiment improved slightly on the diplomatic overtures, though analysts warn geopolitical risks remain high. Iran’s interior minister is set to visit Pakistan today, further underscoring regional mediation efforts.