Diplomatic hopes over US-Iran deal fade as midterms approach
Oil prices tumbled on Monday over US-Iran deal hopes, but the deadlock remained unbroken as the US midterm elections approached.
US forces struck Iran's Qeshm Island on Monday, officials told the Wall Street Journal, as Tehran reported blasts and midterm voting neared.
American forces struck Iran's Qeshm Island on Monday, US officials told the Wall Street Journal. Iranian state media, for its part, reported multiple blasts on the island, which lies close to the Strait of Hormuz.
Officials, cited by the BBC, said the strikes were a response to Iran's Islamic Revolutionary Guard Corps (IRGC) opening fire on a US aircraft. They landed on the eve of the midterm elections, part of a war that started on February 28.
Monday's operation was, per the Journal, the newest in a run of limited strikes over recent weeks. According to one official, Washington kept the campaign quiet so it would not signal a return to major combat.
Speaking to CNN, three US officials called the action defensive and said it was intended to safeguard US assets. Others told the Journal the purpose was to limit Iranian attacks on commercial shipping. The IRGC, meanwhile, said it had seized two US drones south of Qeshm.
The biggest island in the Persian Gulf, Qeshm is said to hold anti-ship missiles, mines and drones inside underground tunnels.
Last week the Journal reported that Adm. Brad Cooper, who heads CENTCOM, presented Trump with military options on Iran. The report added that Trump may yet choose not to act.
Asked earlier by reporters whether significant strikes would restart once the vote was over, Trump answered no. He told Fox News as well that Pickaxe Mountain, an underground nuclear site south of Natanz, was a target the US could hit.
Negotiations are still going on through intermediaries, with Qatar at the helm. Iran's foreign minister, Abbas Araghchi, called them very intensive. Tehran says its plan, set out in seven steps, could be in force within two days.
Vice President JD Vance struck an optimistic note.
“The president and I both feel really good about the prospect of potentially coming to a negotiated settlement,” he said.
He went on to say that the Iranians are unpredictable and that Trump is keeping both military and non-military options open.
Crude prices moved up modestly following the reports. Brent crude advanced 0.67% on the day to $105.48 a barrel, while West Texas Intermediate (WTI) added 0.73% to reach $97.16.
The rebound does little to make up for Monday's slide of more than 6%, which followed headlines about peace. Brent is now trading slightly above the $105 forecast that Goldman Sachs raised.
Control of Congress is also at stake in Tuesday's vote. The World Gold Council has contended that a Democratic Congress might restrict funding for the war, one more factor shaping Washington's next move on Iran.
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Oil prices tumbled on Monday over US-Iran deal hopes, but the deadlock remained unbroken as the US midterm elections approached.
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