WASHINGTON – Global markets rallied after reports emerged that international mediators proposed 10-day halt in hostilities between US and Iran to create diplomatic space to revive an interim agreement.
A senior Iranian source told a global wire service that the proposal is intended to restart negotiations and reduce escalating regional tensions.
Investor optimism grew on expectations that a de-escalation could pave the way for the reopening of the Strait of Hormuz, one of the world’s most critical energy shipping routes. The prospect of smoother oil flows pushed crude prices down to around $80 per barrel, while the S&P 500 climbed as traders welcomed signs of potential progress.
However, the diplomatic picture remains deeply divided. Reports indicate that Iran has rejected a separate U.S.-backed proposal delivered through Qatari mediators. The reported framework called for a 10-day suspension of U.S. military strikes in exchange for Iran reopening two shipping lanes through the Strait of Hormuz.
Senior Iranian negotiator Mohammad Marandi dismissed the recent proposals, saying, “Don’t even think about it,” reaffirming Tehran’s hardline position. The reported rejection comes just days after Iran’s reported withdrawal from a memorandum of understanding and follows remarks by Deputy Foreign Minister Kazem Gharibabadi, who stated that Tehran would not enter negotiations with Washington under the current circumstances.
Even so, there are signs that diplomatic channels remain active. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said any future talks with the United States would be considered only if they align with Iran’s national interests, while confirming that intermediaries have continued exchanging messages with Tehran in recent days.
The conflicting signals highlight the uncertainty surrounding the latest mediation effort. While financial markets are pricing in the possibility of easing tensions and a reopening of the Strait of Hormuz, Tehran’s public stance suggests that any breakthrough remains far from guaranteed.
Oil prices surge above $90 as US-Iran tensions disrupt Strait of Hormuz flows
