Iran is not in a good place right now. It is suffering economically under a blockade, its supposed leader has not been seen for months, inflation is out of control, and it has alienated some of its past allies by attacking them. Things are not going well for the current Iranian regime. That does not mean, however, that the current regime is in danger of being replaced. Iran’s best hope is to somehow make a deal to end the blockade and allow money to flow back into the country. Unfortunately, they have very little leverage.
On Thursday, CNBC posted an article about Iran’s latest diplomatic move.
The article reports:
- Iran urged countries to reject U.S. sanctions as Tehran sets conditions for the Strait of Hormuz reopening.
- Iranian Foreign Minister Abbas Araghchi said renewed talks with Washington remain possible if U.S. pressure eases.
- Oil prices dipped on Friday as market participants closely monitored crude flows through Hormuz.
…Iran’s Foreign Ministry on Friday called on “all countries” not to implement U.S. sanctions against Tehran, warning that doing so would represent “complicity” in imposing the “illegal will” of the United States.
The comments were laid out in a two-page letter published via Telegram, as the country set its conditions for reopening the strategically vital Strait of Hormuz and touted the prospect of a return to diplomatic negotiations.
The White House announced an “economic D-Day” campaign against Tehran earlier in the week, threatening countries that do business with the Islamic Republic and shifting its focus from military action to economic pressure after six months of war.
U.S. President Donald Trump made clear on Thursday that Washington is not talking with Iran, telling reporters in the Oval Office: “We don’t want to speak to them. We’re not looking to meet or anything.”
There are conflicting reports as to whether or not the Strait of Hormuz is actually open. However, as I write this on Friday, the price of oil is dropping slightly, generally holding steady at about $82 a barrel. Ideally for the American economy, the price of oil should be between $50 and $60 a barrel.