President Trump says oil prices will fall sharply once the war with Iran ends, pointing to record U.S. oil flows through the Strait of Hormuz. Iran says it won't soften its terms for reopening the strait, leaving Washington and Tehran at an impasse even as negotiators reportedly weigh a deal to reopen it in exchange for lifting a blockade on Iranian ports.
Oil prices are set to fall sharply once the war with Iran ends, President Donald Trump told reporters on Sunday as he boarded Marine One for Medinah, Illinois. Trump pointed to already increased U.S. oil flows through the Strait of Hormuz as a sign prices are headed lower.
According to Trump: "oil is less expensive now than it was under the Biden administration", and he said a record amount of oil moved through the Hormuz Strait overnight, more than at any point before the war.
Iran Holds Firm on Hormuz Terms
Trump's remarks come even as the U.S. rejected Iran's latest proposal to fully reopen the strait immediately upon meeting its terms. Iran said it would not soften its conditions for reopening the strait and was still awaiting a definitive U.S. response through mediators, after Trump said he had rejected Tehran's proposal.
Iranian Foreign Minister Abbas Araghchi said Tehran was aware of Trump's comments but had not received an official response through Qatar and Pakistan, the mediators in the talks. He said a negotiated solution remained the only way to resolve the impasse over the route.
A Reopening Deal Takes Shape
U.S. and Iranian negotiators had been considering an arrangement under which Tehran would reopen the strait and Washington would lift its blockade of Iranian ports, Bloomberg reported, citing a person familiar with the matter. The arrangement would have resembled a memorandum of understanding reached in mid-June that produced a ceasefire before fighting resumed.
Trump said Saturday that Iran had made a proposal but that he rejected it, arguing Tehran wanted an immediate reopening of the strait as its position weakened.
Regional Tensions Persist
Tensions also escalated elsewhere in the region Saturday, with Saudi-backed coalition forces in Yemen saying air defenses intercepted two Houthi drones targeting Riyadh and a ballistic missile aimed at Khamis Mushait in southern Saudi Arabia. The Wall Street Journal reported that Trump expects to resume strikes against Iran after the U.S. midterm elections in early November and remains skeptical that Tehran will meet his demands.
Iranian President Masoud Pezeshkian said at the United Nations General Assembly last week that Tehran would not permit freedom of navigation through Hormuz as long as U.S. sanctions and the blockade remain in place. The latest statements leave Washington and Tehran at an impasse over Hormuz, with Iran maintaining its conditions even after Trump's public rejection of its proposal.
Source: Investing.com
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