Iran has signaled that there has been “no tangible progress” in the talks with the U.S. on a potential deal while the Israel-Lebanon ceasefire announced by the United States overnight appears shaky.
“No tangible progress has been achieved in the negotiation process,” Iran’s Foreign Minister Abbas Araghchi was quoted as saying by the semi-official Iranian news agency Tasnim.
The U.S. and Iran have been exchanging messages on a framework proposal for a potential agreement for weeks. The oil market has reacted to each signal or hint of a breakthrough with sell-offs that sent Brent Crude prices to below $100 per barrel last week.
Despite the market hopes, the positions of the two sides appear to remain very distant and a re-opening of the Strait of Hormuz is not imminent.
Earlier this week, Iran targeted civilian infrastructure in Kuwait and Bahrain and alarms were raised at U.S. military bases in Saudi Arabia, as Tehran responded to the Israeli offensive in Lebanon.
Israel and Lebanon have reached a ceasefire deal, the U.S. announced late on Wednesday. The announcement sent oil prices down by about 1.5% in early European trade on Thursday as the ceasefire stoked hopes of a revival of the U.S.-Iran talks and a broader agreement that could end the war.
The Israel-Lebanon ceasefire, however, hinges on the Iran-backed militia Hezbollah halting all attacks.
“The ceasefire is contingent on a complete cessation of Hizbollah fire and the evacuation of all Hizbollah operatives from the South Litani Sector,” the joint statement from the U.S., Israel, and Lebanon reads.
The U.S., Israel, and Lebanon “rejected any attempt, by any state or non-state actor, to hold Lebanon’s future hostage.”
According to Bloomberg, fighting persisted in Lebanon despite the declaration of the ceasefire.
Israeli strikes in southern Lebanon continued on Thursday, according to Lebanese state media quoted by the BBC. At least one of these strikes caused casualties.
By Charles Kennedy for Oilprice.com
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