Reports of US-Iran peace plan ease market fears but uncertainty remains
Oil prices fell and stock markets rose on Wednesday morning, as reports of a possible US peace proposal to Iran fuelled hopes of a swift resolution to the war. The optimism may prove short-lived, however, amid conflicting reports about negotiations between the two countries.
On Tuesday evening, several media outlets reported on potential talks between the United States and Iran. Washington is said to have presented a 15-point plan aimed at ending the conflict. At the same time, the Iranian authorities reportedly proposed to the United Nations Security Council that the Strait of Hormuz be reopened to "non-hostile vessels".
Under the reported plan, the US demands that Iran fully dismantle its nuclear weapons programme. The authorities would also be required to hand over their entire stockpile of enriched uranium to the International Atomic Energy Agency and commit to never developing nuclear weapons in the future.
The proposal also includes a one-month ceasefire. In addition, Iran would have to stop arming and financing regional militias such as Hezbollah and Hamas. Limits would also be imposed on the number and range of missiles the country could possess, according to media reports citing the text.
The reopening of the Strait of Hormuz is a key condition. In return, Iran would secure the lifting of international sanctions and receive support in developing its civilian nuclear energy programme. The plan does not include provisions for regime change.
Oil prices fell on international markets on Wednesday morning. A barrel of US oil dropped by just over 3 per cent to 89 dollars, while Brent crude, the benchmark for Middle Eastern oil, declined by 4 per cent to 100 dollars a barrel. Stock markets in Asia and Europe also rose following the reports.
Tehran denies
However, analysts caution that the decline in prices may be short-lived as long as uncertainty persists. According to Axios, Iranian negotiators have already agreed to certain elements of the proposal. And US president Donald Trump has said Iran is "desperate" for a deal.
Iranian officials, however, have denied that any talks with the United States are under way. A spokesperson for Iran's main military command even accused Washington of "negotiating with itself" in a public statement on Wednesday morning.
The US is also reinforcing its military presence in the region. The Pentagon has ordered about 2,000 soldiers from the Army’s 82nd Airborne Division to deploy to the Middle East, according to the New York Times, bringing the total number of US ground troops sent to the region to nearly 7,000 since the conflict began.
A protest in London © PHOTO HENRY NICHOLLS / AFP
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