Iran Says US Talks to De-Escalate Tensions Had ‘Good Start’

Hagar Chemali, Former-Director for Syria and Lebanon at the National Security Council, and CEO and Founder of Greenwich Media Strategies warned that strikes can still happen even as diplomatic talks occur.

Iran said it agreed with the US to continue indirect talks to de-escalate tensions and avert a military confrontation, with Tehran describing the first day as positive.

Negotiations, mediated by Oman in its capital Muscat, had a “good start,” Iran’s Foreign Minister Abbas Araghchi told state TV after the talks concluded for the day. He added that he thought the sides “can reach an agreed framework for future talks” if the process continues in the same vein.

Oil prices fell after the comments, with benchmark Brent dropping below $67 a barrel before erasing losses. Crude prices have soared around 12% this year, in large part due to concerns about a new war in the Middle East.

Iran said discussions were limited to nuclear issues, something the Islamic Republic has insisted on, while US officials say they should include Iran’s missiles and Tehran’s support for regional militias.

“The subject of our talks is strictly nuclear, and we are not discussing any other issues with the Americans,” Araghchi said in an interview with state-run IRIB.

US officials have yet to comment on the outcome of Friday’s talks.

The negotiations involved Omani Foreign Minister Badr Albusaidi holding multiple separate meetings with the Iranian delegation led by Araghchi and the US team including special envoy Steve Witkoff and President Donald Trump’s son-in-law Jared Kushner.Iran’s main priorities included “assessing the other side’s goodwill and seriousness,” the state-run Islamic Republic News Agency reported.

Araghchi presented a preliminary plan for “managing the current situation” and advancing negotiations, it added.

Read More: Oil Falls After Iran Says Talks With US Were a Good Start

Some supertanker operators, nervous about the rising US-Iran tensions and potential risks to shipping in the Strait of Hormuz, are speeding their vessels through the chokepoint, Bloomberg has reported.

On Friday, the State Department unveiled new sanctions targeting 15 entities, two individuals and more than a dozen so-called shadow fleet vessels involved in shipping Iranian oil, as the White House continues to pressure Iran despite the ongoing talks.

“Instead of investing in the welfare of its own people and crumbling infrastructure, the Iranian regime continues to fund destabilizing activities around the world and step up its repression inside Iran,” State spokesman Tommy Pigott said in a statement. “The president is committed to driving down the Iranian regime’s illicit oil and petrochemical exports u Trump has threatened Tehran with military strikes if it doesn’t agree to a deal, with Iran warning that any attack would trigger a regional war engulfing Israel and the US.

The US on Friday urged any of its citizens in Iran to leave or stockpile food and water if they’re unable to do so. It’s unclear how many Americans are still in Iran, but the number is probably small.

Trump’s stated objective has morphed from assurances on the safety of Iranian protesters who staged mass anti-government demonstrations in December and January to a broader deal to constrain Tehran’s nuclear and ballistic missile programs.

There’s widespread skepticism among analysts that the two countries can reach a deal.

“Despite some diplomatic progress, US strikes on Iran remain likely,” Gregory Brew and Henning Gloystein, analysts at Eurasia Group, said in a note to clients on Thursday. “Trump’s preference for quick, decisive actions that do not turn into prolonged commitments means the expected US strikes would be intensive, but not prolonged.”

--------

Watch Bloomberg Radio LIVE on YouTube

Weekdays 7am-6pm ET

Follow us on X

Subscribe to our Podcasts:

Bloomberg Daybreak

Bloomberg Surveillance

Bloomberg Intelligence

Balance of Power

Bloomberg Businessweek

Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:

Apple CarPlay

Android Auto

Visit our YouTube channels:

Bloomberg Podcasts

Bloomberg Television

Bloomberg Originals