• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 3 hours Why Wind is pitiful for most regions on earth
  • 3 hours Is OilPrice a cover for Green Propganda
  • 22 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 34 mins Sources confirm Trump to sign two new Executive orders.
  • 13 hours In a Nutshell...
  • 1 day Joe Biden to black radio host, " If you don't vote for me you ain't black". That's our Democratic Party nominee ?
  • 2 days Happy 4th of July!
  • 2 days Putin Paid Militants to Kill US Troops
  • 2 days Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 3 days Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 3 days Victor Davis Hansen on Biden's mental acuity " . . unfit to serve". With 1 out of 5 Democrats admitting it. How many Dem's believe it but will not admit it?
  • 5 hours Coronavirus hype biggest political hoax in history
  • 2 days Apology Accepted!
What Iran’s Election Result Means For Oil Markets

What Iran’s Election Result Means For Oil Markets

Hardliners have won the Parliamentary…

The Real Reason The U.S. Is Interested In Iran

The Real Reason The U.S. Is Interested In Iran

Tensions are escalating in the…

Is Iraq About To Become A Chinese Client State?

Is Iraq About To Become A Chinese Client State?

China has taken yet another…

ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Oil Tumbles After Iran Offers New Nuclear Deal If U.S. Drops Sanctions

Who knew Rand Paul could be such an effective negotiator.

One day after the Republican senator and son of Ron Paul was reported to be Trump's liaison to negotiate with Iran in hopes of easing tensions, sending the price of oil tumbling, the Guardian report that Iran has offered a deal with the US in which it would "formally and permanently" accept enhanced inspections of its nuclear program, in return for the permanent lifting of US sanctions.

The offer was made by Iran's foreign minister, Mohammad Javad Zarif, on a visit to New York, although for those hoping that the US and Iran will become bffs, don't get your hopes up: as the Guardian notes, the offer is unlikely to be warmly received by the Trump administration, which is currently demanding Iran make a range of sweeping concessions, including cessation of uranium enrichment and support for proxies and allies in the region.

Zarif countered that his offer was “a substantial move”.

“It’s not about photo ops. We are interested in substance,” he told reporters at the Iranian mission to the UN in New York on Thursday. “There are other substantial moves that can be made.”

“If they [the Trump administration] are putting their money where their mouth is, they are going to do it. They don’t need a photo op. They don’t need a two-page document with a big signature.”

In May of 2018, Trump unleashed an oil embargo on Iran, coupled with severe banking sanctions, when the US withdrew the US from the 2015 multilateral nuclear deal with Iran known as the Joint Comprehensive Programme of Action (JCPOA). The ongoing embargo has not only crippled Iran's economy, but triggered a standoff in the Gulf that has escalated dramatically in recent months, with sabotage attacks on foreign tankers, blamed on Iran by the US. In the latest incident on Thursday, Iran said it had seized a foreign-owned vessel suspected of being used for oil smuggling out of Iran. Related: Iran: Our Missile Program Is Not Negotiable

Zarif dismissed the incident as a routine marine policing matter.

He said: “It’s not a tanker. It’s a small ship carrying a million litres, not a million barrels, of oil. We do it every other day. These are people who are smuggling our fuel. This is … one of the things that we do in the Persian Gulf, because of the heavy subsidies that we provide for our own fuel products.”

An unexpected moment of diplomatic tenderness emerged when Zarif credited Trump with "prudence" for calling off missile attacks last month in reprisal for the downing of a US surveillance drone, and said that gave him confidence that diplomatic progress is possible.

He said: “I believe we were few minutes away from a war. Prudence prevailed and we’re not fighting. So that gives reason for us to be optimists. If we work, if we are serious, then we can find a way forward.”

But the reason why today's olive leaf by Iran was notable is that until now, Iran’s supreme leader Ali Khamenei has rebuffed overtures for direct talks with Trump, citing US bad faith over the JCPOA, but Zarif signaled on Thursday that Iran was willing to do a deal that did not necessary involve the US returning to the JCPOA, Tehran’s official position until now.

The result: oil prices are tumbling for a fourth day...

... as a major source of geopolitical uncertainty now appears to be on its way out... or at least until Trump comments that nothing that Iran has offered is an acceptable basis for negotiation.

By Zerohedge.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News