US-Iran stalemate and oil market impact (with Haidi Stroud-Watts, Paul Allen)

The US and Iran have been trading messages over the weekend seeking changes to a draft deal to extend the ceasefire and reopen the Strait of Hormuz, but there is little sign of concrete progress.

Haidi Stroud-Watts

Wendy Benjaminson

The US and Iran are in a stalemate. Messages are being exchanged but only from the Iranian side. The US president has not mentioned the negotiations in over 50 social media posts. The deal could fall apart at any moment due to disagreements over nuclear weapons, the Strait of Hormuz toll system, and reparations.

Trump's red lines are that Iran must never develop a nuclear weapon and must open the Strait of Hormuz for free-flowing traffic. The Iranians want to set up a toll system and seek reparations.

Traffic through the Strait of Hormuz is flowing to some extent, with some ships making it through. What is the US position on deals negotiated with Iran to allow ships to pass?

Paul Allen

Wendy Benjaminson

Trump is opposed to any deals and threatened to blow up Oman, a US ally that has been talking to Iran about a cooperative system. About 70 ships have been guided through by the US, but any ship trying to reach an Iranian port faces a navy blockade. A Gambian flagship was disabled for ignoring warnings.

Ships are getting through at the United States' discretion.

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