UNCERTAINTY FUELS OIL-PRICE GAIN
The war has wreaked havoc on the global economy, with the surge in oil prices stoking fears of rampant inflation.
The US dollar was near its highest level in six weeks on Friday amid the uncertainty over peace talks, while oil prices climbed as investors doubted the prospects of a breakthrough.
“We’re coming to the end of week 12, we’re six weeks in the ceasefire, and I’m just not really that convinced we’re any closer to a resolution between the US and Iran,” Tony Sycamore, a market analyst at IG, said of the Middle East war.
US President Donald Trump said the US would eventually recover Iran‘s stockpile of highly enriched uranium – which Washington believes is destined for a nuclear weapon, though Tehran says it is intended purely for peaceful purposes.
Two senior Iranian sources told Reuters before Trump’s comments that Iranian Supreme Leader Ayatollah Mojtaba Khamenei had issued a directive that the uranium should not be sent abroad.
Trump faces domestic pressure ahead of November midterm elections, with Americans angry over the surge in fuel prices and his approval rating near its lowest level since he returned to the White House last year.
Tehran submitted its latest offer to the US earlier this week.
Iran‘s descriptions suggest it largely repeats terms Trump previously rejected, including demands for control of the Strait of Hormuz, compensation for war damage, lifting of sanctions, release of frozen assets and the withdrawal of US troops.
Traffic through the strait has fallen to a trickle compared with 125 to 140 daily passages before the war.
Iran has said it aims to reopen the strait to friendly countries that abide by its terms that could potentially include fees.
In the past 24 hours, 35 tankers, cargo and other commercial vessels passed through the Strait of Hormuz after obtaining permission from the Revolutionary Guards Navy, its public relations division said.
The US and Israel say their war aims are to curb Iran‘s support for regional militias, dismantle its nuclear programme, destroy its missile capabilities and make it easier for Iranians to topple their rulers.
But Iran has so far retained its stockpile of near-weapons-grade enriched uranium, and its ability to threaten neighbours with missiles, drones and proxy militias.