- Oil prices dropped Friday on a report that Pakistan is looking for a way to restart talks between the U.S. and Iran.
- Brent crude, the international benchmark, fell nearly 4% to close at $96.78 a barrel.
- Pakistan's effort to renew U.S.-Iran talks was backed by China, according to three sources.
- Exploratory discussions took place during a visit by Iran's Interior Minister Eskandar Momeni to Islamabad this week.
- Momeni met with Pakistani government leaders and army chief Asim Munir this week.
- Pakistan's Foreign Minister, Ishaq Dar, discussed the new Middle East effort with Chinese officials when he visited China last week.
- China supports the mediation efforts made by Pakistan and other parties, according to a statement from China's foreign ministry.
- The US and Iran signed a memorandum of understanding in June to move towards ending the war after mediation by Pakistan and Qatar.
- Indirect talks yielded no progress, with both sides blaming each other for violations, leading to a resumption of conflict.
- A halt in attacks on Saudi Arabia and other Gulf nations would now be a pre-requisite for any talks to resume, said a Pakistani official.
Oil prices fell nearly 4% to $96.78 a barrel as reports surfaced that Pakistan is attempting to mediate a resumption of U.S.-Iran talks, with China's backing. This initiative follows a series of Iranian military actions that have raised tensions in the Gulf region.
According to three Pakistani sources, the push for renewed discussions was initiated by China, which is concerned about Iran's recent attacks on Gulf states and the closure of the Strait of Hormuz. A Pakistani government official stated, "The Chinese are unhappy because Iran's attacks on other Gulf states and the closure of the Strait of Hormuz are hitting their interests."
Exploratory talks occurred during a visit by Iran's Interior Minister, Eskandar Momeni, to Islamabad, marking his second visit in ten days. Momeni met with Pakistani leaders and army chief Asim Munir, as reported by government statements.5
Despite these efforts, sources caution that significant obstacles remain for any potential talks. The U.S. and Iran had previously signed a memorandum of understanding in June, aiming to end their ongoing conflict, but indirect negotiations have stalled, with both sides blaming each other for violations.
China's foreign ministry expressed support for Pakistan's mediation efforts, stating, "China supports the mediation efforts made by Pakistan and other parties." The ministry emphasized its commitment to restoring peace in the Middle East Gulf region.7
A Pakistani official noted that a halt in attacks on Saudi Arabia and other Gulf nations would be a "pre-requisite for any talks to resume."10
“Brent crude fell nearly 4% to close at $96.78 a barrel, while U.S. crude lost 3% to settle at $89.31. The exploratory push includes visits by Iran's Interior Minister Eskandar Momeni to Islamabad this week, his second within 10 days.”
CNBC
