Iran’s respect key to resolving war: Trump
US President Donald Trump said “respect” from Iran would be key to sustaining peace after the end of the Iran-Israel war, expressing optimism about fully reopening the Strait of Hormuz to create “an oil gusher”.
“As long as they respect us, I don’t want to use the word fear because that’s an inappropriate word, but as long as they respect us, we’re not going to have any trouble,” Trump told reporters at his Oval Office on Monday.
Iran effectively closed the Strait after the US and Israel attacked on February 28, causing fuel prices to skyrocket far beyond the region. The interim agreement to end the war was supposed to reopen the channel. Dozens of ships passed through it over the weekend, even though the main route is still mined and closed.
The lead negotiator of the Iranian delegation, Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, insisted on Monday that the Strait of Hormuz will be managed by Iran, but following international laws.
“Hopefully we can activate the strait again, in terms of passage, and bring prosperity back to the regional and global economy,” he told Iranian state media on the plane on his way back from Switzerland.
Ghalibaf and the Foreign Minister, Abbas Araghchi, arrived on Monday night in Oman, where they met with the country’s Foreign Minister Badr al Busaidi to discuss the peace efforts and ensure safe navigation in the Strait of Hormuz.
The US Treasury issued a 60-day licence on Monday, waiving sanctions on Iranian oil as part of the interim agreement. Notably, the license allows Iranian oil to be imported into the US, which has not imported significant amounts of Iranian oil since the 1990s.
Tanker traffic continued to pick up through the Strait of Hormuz. According to data and analytics firm Kpler, there were 71 confirmed transits over the weekend, with a peak of 35 crossings on Saturday. Before the war, 100 to 130 vessels passed through the strait each day.
Ships have been avoiding the central route to steer clear of mines, choosing instead to use the smaller northern route, which goes through Iranian waters, and the southern route, which goes through Omani waters.
In the markets, Brent crude oil fell 3.2 per cent to $77.52 per barrel, closer to its roughly $70 price from before the war. Benchmark US crude oil fell 2.6 per cent to $73.86 per barrel.
President has heralded the peace talks with Iran as a win for US farmers, saying that the unfreezing of sanctioned Iranian money will be tied to that country buying American-grown corn, soybeans and wheat.
“These are things that are desperately needed by Iran,” Trump posted on social media. “This is a humanitarian crisis, and I feel it is necessary to help.”
But Iran is unlikely to start buying a vast amount of US farm products.
“I don’t expect that trade would be very large in the short run,” said Joseph Glauber, a research fellow emeritus at the International Food Policy Research Institute.
Glauber noted that Iran was “unlikely” to abandon its other trade partners on food for America. He said Iran’s major suppliers include Brazil, India, Turkiye, the European Union, Canada, Australia and Argentina and that Trump’s demand to buy from the US would “create some hard feelings with some of our competitors.
