Iran has accused US President Donald Trump of using “theatrical diplomacy” following Washington’s statement claiming that negotiations between the two countries are nearing completion.
Tehran, however, insisted that no formal negotiations are underway to end the conflict that has dragged on for several months.
The statement was made by the Speaker of the Iranian Parliament and the country’s chief negotiator, Mohammad Bagher Ghalibaf, a few days after Trump claimed that the basic framework of the agreement with Iran had been agreed.
Regional Tensions Continue to Rise
In the same development, Saudi Arabia reportedly increased its level of readiness following intelligence warnings about possible planned attacks by Iranian-backed Iraqi militia groups and the Houthis.
The threat came after the Houthis claimed responsibility for attacking two Saudi oil tankers in the Gulf of Aden. In recent weeks, Saudi Arabia has also been the target of several missile and drone attacks allegedly carried out by armed groups backed by Iran.
The escalating tensions have also affected shipping activity in the world's main trade routes as the number of ships passing through the Strait of Hormuz and Bab el-Mandeb has dropped significantly compared to pre-conflict levels.
Iran Proposes New Restrictions on the Strait of Hormuz
Iranian media reported that a draft agreement being negotiated with Oman proposes that ships with ties to the United States, Israel and countries considered hostile to Tehran are not allowed to use the Strait of Hormuz.
Iran also reportedly plans to impose penalties of up to 20% of the value of cargo on ships that violate the terms of the agreement if the proposal is implemented.
The development has again raised concerns about global oil supply disruptions, thus pushing crude oil prices higher after the market was previously optimistic that the Strait of Hormuz would reopen in the near future.
