Oil prices rise as US-Iran uncertainty and shipping attacks raise supply concerns

WASHINGTON: US President Donald Trump has claimed that Washington has control over Iran’s financial resources as the conflict between the United States and Iran continues. In an interview, Trump said the US was effectively acting as a banker for Iran. He claimed Washington had control over a large amount of Iranian money. Trump also described Iran’s economic situation as extremely difficult. He alleged that the country was facing very high inflation and that its currency had lost much of its value. The US president further claimed that Iran was struggling to pay its soldiers and suggested that the economic pressure could become increasingly difficult for Tehran to sustain. Trump outlined several possible approaches toward Iran. He said Washington could maintain the current economic pressure, launch further military action or rely more heavily on financial measures. He said his main objective in the conflict was to prevent Iran from acquiring a nuclear weapon. Trump also claimed that US military action had stopped Tehran from obtaining such a capability. Qatar urges reopening of Strait of Hormuz Meanwhile, Qatar said talks between Iran and Oman on arrangements for reopening the Strait of Hormuz had reached an advanced stage. Qatari Foreign Ministry spokesman Majed Al-Ansari said the negotiations had reached a critical point. He expressed hope that the strategically important waterway would reopen as soon as possible. Qatar said it supports diplomatic efforts aimed at reducing tensions and resolving the dispute. Iran and Oman have been discussing legal and technical arrangements for the resumption of maritime traffic through the strait. Shipping activity in the area has been disrupted following the military confrontation between Iran and the United States. Tehran has linked the reopening of the waterway to the resolution of disputes surrounding what it describes as US violations of a June memorandum of understanding. Araghchi says US sought negotiations Iranian Foreign Minister Abbas Araghchi has claimed that Washington eventually sought negotiations with Tehran after initially demanding Iran’s unconditional surrender. Speaking during a televised press conference, Araghchi said the US had initially taken a hard-line position but later sought talks. He claimed that the change demonstrated Iran’s ability to withstand military and political pressure. Araghchi also said Iran had surprised countries around the world by resisting the United States. The Iranian foreign minister said Washington had support from Israel and several Western countries during the conflict. He also discussed the situation with German Foreign Minister Johann Wadephul during a telephone conversation. According to Iranian state media, Araghchi told his German counterpart that the insecurity in the Strait of Hormuz was the result of US and Israeli military actions against Iran. He briefed Wadephul on Iran’s discussions with Oman regarding the creation of a safe route for maritime traffic through the strategic waterway. The two officials also discussed bilateral relations and wider regional and international developments. Araghchi called on the international community to hold Washington accountable for what he described as the security and economic consequences of the disruption in the Strait of Hormuz. He maintained that lasting security in the waterway would require an end to what Tehran considers US military aggression, maritime restrictions and violations of previous commitments.

TEHRAN: Iran has described its relationship with Pakistan as increasingly important, saying Islamabad has played a significant role as a mediator since the outbreak of the regional conflict. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the two neighbouring countries were maintaining close diplomatic contacts. He also confirmed that Iranian Foreign Minister Abbas Araghchi and Parliament Speaker Mohammad Bagher Ghalibaf had been invited to visit Islamabad. Baghaei said the two officials would travel to Pakistan at a suitable time. He did not announce a specific date for the visit. He described reciprocal visits between the two countries as a natural part of their growing bilateral relationship. The Iranian official also played down concerns that the recently signed defence agreement between Pakistan, Saudi Arabia and Turkiye was aimed at Tehran. Pakistan, Saudi Arabia and Turkiye signed the Makkah Joint Defence Agreement on August 7. The agreement seeks to strengthen collective defence cooperation and provides for a joint response if any member comes under attack. Baghaei said Tehran did not consider the agreement a direct threat to Iran. He said regional countries were increasingly seeking security arrangements based on their own regional realities rather than relying entirely on external powers. He maintained that regional cooperation could contribute to stability if such arrangements remained inclusive and focused on preventing conflict. Baghaei also said Iran was not prepared to resume direct negotiations with the United States while Tehran believed Washington was violating an interim agreement. The Iranian government has also linked the reopening of the Strait of Hormuz to a number of demands. These include compensation for damage caused during the conflict and an end to the US naval blockade of Iranian ports. Meanwhile, Iran and Oman are continuing discussions on arrangements for commercial shipping through the Strait of Hormuz. Baghaei said the talks were progressing in a constructive manner. He said the two sides had reached an understanding on a proposed map for shipping traffic and were working on several technical details. According to the Iranian official, the proposed arrangement would establish mechanisms for safer maritime movement. It would also address environmental protection and maritime crimes. He stressed that the discussions with Oman were focused on ensuring safe international shipping and were separate from broader political disputes. Baghaei nevertheless reiterated that Tehran would not allow the full reopening of the strategic waterway unless its conditions concerning Washington were addressed. In a separate development, Iran has appointed former Islamic Revolutionary Guard Corps commander Mohsen Rezaei to a senior position in the Supreme National Security Council. Rezaei has replaced Mohammad Baqer Zolqadr as secretary of the body responsible for coordinating Iran’s security and foreign policy. No official reason was immediately given for the change. It also remains unclear whether the appointment will lead to any major shift in Iran’s security policy. Rezaei, 71, commanded the Revolutionary Guards from 1981 to 1997. He later served for more than two decades as secretary of Iran’s Expediency Discernment Council and also held the position of vice president for economic affairs. Iran’s Supreme National Security Council brings together senior military, intelligence and government officials. It is formally chaired by the president, while the supreme leader retains ultimate authority over major state matters. A separate decree appointed Rezaei as the supreme leader’s representative on the council. Zolqadr was instead named as a political adviser. The developments come as Iran faces heightened regional tensions and continues efforts to manage its relations with neighbouring countries and major international powers.