Iran urges nations not to yield to US threats as it keeps door open to diplomacy

Iranian Foreign Minister Abbas Araghchi cautioned against capitulating to US threats, stating that renewed diplomatic efforts between the two nations "isn't impossible." He emphasized that progress requires Washington to grasp the simple fact that economic pressure is ineffective. The diplomat urged the US to foster trust and honor its commitments, though he offered no further details.

This cautiously optimistic stance emerged following a series of diplomatic visits to Tehran and talks between Iran and Oman concerning a framework enabling vessels to pass through the Strait of Hormuz. Pakistan facilitated the visit of Iran's main mediator, while senior officials from Oman and Qatar joined later in the week. The United States, however, maintains a confrontational stance, with Treasury Secretary Scott Bessent threatening sanctions on any country engaging with Iran and President Donald Trump refusing to lift the blockade of Iranian ports, a demand Tehran has insisted upon.

Qatar's Prime Minister Sheikh Mohammed Bin Abdulrahman Al Thani's meetings in Tehran centered on creating "appropriate conditions" for US- Iran talks and reopening the Strait of Hormuz, a critical oil and gas supply route that has been effectively halted since February's conflict. Iran's top security official, Mohsen Rezaee, indicated readiness to reopen the strait if the US complies with unspecified conditions.

Although a revenue-sharing agreement with Oman was reportedly reached regarding transit through the strait, Iranian officials have maintained that this does not automatically reopen the waterway. Nonetheless, crude shipments through the strait have increased, reaching about 6-8 million barrels daily, roughly half of pre-war levels.

Oil exports from the Persian Gulf, including land routes, have recovered to about two-thirds of pre-war volumes, according to Goldman Sachs Group Inc. estimates. Oil prices have remained stable, with Brent crude trading around $89 per barrel, having risen nearly 45% this year. Iraq is offering buyers of its crude the option to collect supplies from outside the Persian Gulf for the first time since the war commenced, showcasing efforts to sustain exports.

However, Qatar has extended a force majeure clause on liquefied natural gas supplies to European and Asian buyers by another month due to ongoing uncertainties.