Iran Sends Proposal, Trump Remains Threat
Iran has sent a peace proposal to the United States that includes a cessation of hostilities on all fronts, including Lebanon, and demands for reparations for damage caused by the conflict, state media reported on Tuesday. IRNA said the proposal also demands the withdrawal of US troops from areas near Iran, the lifting of sanctions, the release of frozen funds, and an end to the US blockade of Iranian ports.
Reuters, citing Pakistani sources, reported that Islamabad has conveyed the Iranian proposal to the US. Pakistan has acted as a frequent intermediary since the conflict erupted in late February. However, Iran's latest offer is said to be not significantly different from its previous terms, which US President Donald Trump last week dismissed as "garbage."
Trump said on Monday that he had called off new attacks on Iran after being asked by three Gulf leaders. He claimed "serious negotiations" were underway and insisted that a deal must ensure "no nuclear weapons for Iran," but also said the US military remained on alert for a full-scale attack if an acceptable deal was not reached.
On the Iranian side, the Associated Press reported that state television called Trump's statement a "retreat" from the threat of attack due to "fear," and stated that defense systems had been activated on an island in the Strait of Hormuz that houses a crucial water desalination facility. This narrative of mutual pressure underscores the fragile nature of the diplomatic path despite ongoing talks.
Oil prices edged lower, but Brent remained around US$110 per barrel, well above pre-war levels of around US$70. Fears of an energy shock fueling inflation and higher borrowing costs have fueled a sell-off in bonds in recent days, although government bond yields have now stabilized.
The market's focus remains on the Strait of Hormuz: despite hopes for detente, the waterway remains virtually closed to tanker traffic, disrupting energy supplies to various countries. Market participants will be monitoring the official US response to Iran's proposal, the status of sanctions and port blockades, and any signs of a recovery in shipping flows through Hormuz, as these factors will determine the resilience of the energy risk premium and its implications for inflation and global growth. (arl)
Source: Newsmaker.id
