NEW YORK, September 24: Iran has said it remains open to diplomacy to end its months-long war with the United States, even as Tehran and Washington continue to differ sharply over the terms of a settlement. The diplomatic signal helped ease oil prices on Thursday after crude had jumped more than 4% in the previous session amid renewed concerns over the conflict and shipping through the Strait of Hormuz.
Iran Says Diplomacy Must Continue
A senior Iranian official told Reuters that Iran and the United States remain far apart on how to end the conflict, but said diplomatic efforts should continue.
The comments followed Iranian President Masoud Pezeshkian’s address to the United Nations General Assembly, where he rejected U.S. pressure and said Iran would not surrender, while also leaving the door open to negotiations.
Pezeshkian criticised what he described as a “bullying mentality” from Washington. That characterisation is Iran’s stated position; U.S. officials have argued that their military and economic pressure is aimed at preventing Iran from obtaining nuclear weapons and protecting regional security.
First Shuttle Talks in Months Held at UN
U.S. and Iranian representatives have recently resumed indirect contacts on the sidelines of the UN General Assembly in New York.
Iranian Foreign Minister Abbas Araqchi and U.S. envoys Steve Witkoff and Jared Kushner communicated through mediators, including Qatar, in what Reuters described as the first shuttle talks between the two sides in months.
President Donald Trump said the discussions with mediators had been productive, while Iranian officials said Tehran had communicated its conditions for reviving diplomacy. Neither side has announced a final agreement or major concession.
Oil Prices Edge Lower on Diplomatic Hopes
Oil prices moved lower on Thursday as traders reacted to the renewed possibility of negotiations.
Brent crude futures fell around 94 cents, or 0.9%, to $102.13 per barrel, while West Texas Intermediate declined about 59 cents, or 0.7%, to $91.56 per barrel.
The decline came after oil prices had risen sharply in the previous session amid concerns that the conflict could further disrupt supplies and shipping in the Gulf.
Strait of Hormuz Remains Central to Talks
The Strait of Hormuz, one of the world’s most important energy shipping routes, remains a central issue in negotiations.
A senior Iranian official earlier told Reuters that Tehran could reopen the waterway within seven days if the United States eases military pressure and lifts its blockade on Iranian ports.
Iran has also indicated that reopening the strait would depend on its conditions being met, while Washington has continued to press for unrestricted commercial navigation.
Before the conflict, roughly one-fifth of global oil and liquefied natural gas supplies passed through the Strait of Hormuz.
Trump Says Settlement Still Possible
Trump has said he believes an agreement with Iran can eventually be reached, although he has also warned of further military action if negotiations fail.
In remarks during the UN General Assembly, Trump said Washington would not allow Iran to obtain nuclear weapons and maintained that the United States had several options if diplomacy did not produce a settlement.
Iran, meanwhile, has said its nuclear programme is intended for peaceful purposes and has rejected demands it views as surrendering its sovereign rights.
Tehran and Washington Still Far Apart
Despite the renewed talks, officials from both sides have indicated that significant disagreements remain.
Issues include Iran’s nuclear programme, U.S. sanctions and military pressure, the reopening of the Strait of Hormuz, regional security arrangements and the terms of any ceasefire or broader peace agreement.
The latest diplomatic contacts have nevertheless raised hopes that the two sides may be able to prevent further escalation after months of fighting and disruption to global energy markets.
Energy Markets Watching Talks Closely
Oil traders are closely monitoring whether the diplomatic process leads to greater shipping flows through the Gulf and a reduction in military activity.
Saudi Arabia has also been restoring export capacity after attacks on its energy infrastructure, adding to expectations that more supply could reach global markets if regional tensions ease.
For now, oil prices remain highly sensitive to developments in the U.S.-Iran talks, the Strait of Hormuz and the wider Middle East conflict.
source – Reuters / Associated Press / United Nations
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