❓WHAT HAPPENED: The second round of indirect negotiations between the United States and Iran concluded in Geneva, Switzerland, with reports of an understanding on main principles between the two nations, causing the price of a barrel of oil to fall.
👤WHO WAS INVOLVED: U.S. envoy Steve Witkoff, Jared Kushner, Iranian Foreign Minister Abbas Araghchi, and International Atomic Energy Agency (IAEA) head Rafael Grossi.
📍WHEN & WHERE: Talks concluded in Geneva on Tuesday, coinciding with naval drills in the Strait of Hormuz.
💬KEY QUOTE: “We have reached an understanding on main principles with the U.S.” — Iran’s Foreign Minister Abbas Araghchi
🎯IMPACT: Oil prices initially rose due to military activity in the Strait of Hormuz, but later fell following news of progress in talks.
The price of oil began falling on Tuesday after Iranian leaders indicated they had reached a preliminary understanding with the United States in ongoing negotiations over its ballistic missile and nuclear weapons programs. Oil initially spiked on Monday as Iran conducted military drills in the Strait of Hormuz, while the U.S. continued its naval buildup in the region.
Whenever the Strait of Hormuz experiences partial closure or other disruptions to its shipping lanes, the impact on global prices can be significant. The key waterway, which sits between Iran and the Arab Peninsula, serves as a major conduit for oil and gas from the entire Middle East, with around 20 to 25 percent of the world’s oil flowing through the strait, amounting to an estimated 20 million barrels a day.
Held in Geneva, Switzerland, the second round of indirect negotiations saw both delegations depart following the talks, though Iranian negotiators reportedly expressed a willingness to remain in Switzerland for extended periods if necessary to finalize a deal and avoid potential military conflict with America. Iranian Foreign Minister Abbas Araghchi stated, “We have reached an understanding on the main principles with the U.S.,” following the conclusion of the talks.
Notably, Iranian state media is characterizing the result of the talks as having established a basic agreement on the country’s nuclear program. However, it appears the issues of its ballistic missile program and financing of terrorist proxy groups remain unresolved. The United States delegation included White House special envoy Steve Witkoff and Jared Kushner, with President Donald J. Trump indicating he would “indirectly” participate in the discussions.
Meanwhile, Iran’s Foreign Minister Abbas Araghchi also met with International Atomic Energy Agency (IAEA) head Rafael Grossi in Geneva on Monday as part of broader diplomatic efforts.
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