Iranian and American officials began indirect talks through intermediaries on Tuesday in an effort to end the seven-month war. These negotiations come as Middle Eastern crude oil exports have reached their highest level since the conflict began in February 2023.
Details of the Talks and Iran's Demands
Abbas Araghchi, Iran's Foreign Minister, met with Qatari intermediaries in New York and stated during the meeting that he expects a response from Washington by Tuesday. He discussed ideas and solutions that could meet Iran's conditions and added that he would return to Tehran as soon as he receives a response. Araghchi also noted that "whenever the Qataris have a response, they know how to convey it to us."
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Iran's proposal, presented last week on the sidelines of the United Nations General Assembly, calls for a four to five-day timeline for the release of Iran's frozen funds, the lifting of sanctions on Iranian oil, and the end of the maritime blockade of Iranian ports. It has also conditioned the start of nuclear negotiations within seven days after these actions. Tehran has linked any reopening of the Strait of Hormuz to these conditions.
Oil Export Status and Economic Implications
According to provided data, Middle Eastern crude oil exports this month have reached about 80% of pre-war levels. Data from Kpler shows that Middle Eastern crude oil exports have reached their highest level since the war began in February 2023. The company stated in a note that "Middle Eastern crude oil exports are close to 80% of pre-conflict levels."
The Strait of Hormuz, a vital oil export route, has not yet returned to normal status. According to real-time tracking by Kpler, the volume passing through the strait on Saturday reached 10,591 kilobarrels per day, while the pre-war level was 17,133 kilobarrels per day.
This situation has also impacted fuel prices in U.S. markets, with retail diesel prices nearing a record high of $6.53 per gallon. The Trump administration is once again considering an export ban, just days after stepping back from a previous version of this plan. This action could keep about 1.2 million barrels per day domestically and increase the risk of storage accumulation.
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