- Iranian and Omani technical teams met last week in Oman to negotiate a mechanism for safe transit in the Strait of Hormuz
- Process of talks through Pakistani mediation is ongoing
- Both Iran and the US have sent their comments on the recent Iranian proposal
- Tehran’s demands in negotiations with the US include releasing Iranian frozen funds and lifting sanctions
Iran’s foreign ministry says that indirect diplomatic channels with the US remain active despite recent escalations. Iranian and Omani technical teams held meetings in Oman last week to negotiate a dedicated mechanism aimed at securing safe transit through the critical chokepoint of the Strait of Hormuz. Alongside these maritime security talks, Tehran clarified that the broader process of dialogue is traversing a very difficult course through Pakistani mediation, with both the US and Iran having officially exchanged formal comments and counter-proposals regarding recent framework for peace.
Trump issued a warning on Truth Social, declaring that the clock is ticking for Iran and urging the country to move fast to secure a deal or face total devastation. The White House has previously labeled Iran’s proposal, which demands an end to the naval blockade of the Strait of Hormuz, the lifting of broad economic sanctions, release of frozen funds and guarantees against future attacks, as totally unacceptable. US’s own strict parameters demand that Iran surrender its stockpile of highly enriched uranium and accept a multi-decade enrichment moratorium, exposing massive deadlocks that the Pakistani mediators are struggling to bridge.
This stalemate is now starting to weigh on global financial markets. We saw a sharp surge in US Treasury yields on Friday, well past their previous March highs. Market participants price in persistent inflation risks, with risks of the Fed being forced to hike rates at some point. We have now 50% chance of a rate hike expected by year-end
