live Oil prices fall as Iran vows retaliation over U.S. sanctions
Oil prices fell after the U.S. expanded economic sanctions on Iran, as Tehran vowed to retaliate and warned it had tools to respond, raising concer...
Talks with the U.S. should be pursued to secure national interests as long as "threats and unreasonable expectations" are avoided, President Masoud Pezeshkian posted on X on Tuesday (3 February).
“Taking into account demands from friendly regional countries to respond to the U.S. President's suggestion for talks, I instructed the foreign minister to prepare the ground for equitable and fair negotiations, should an atmosphere free of threats and unreasonable expectations arise,” Pezeshkian said.
The comments come amid mounting regional concern that a renewed confrontation between the United States and Iran could destabilise the Middle East.
Speaking at a panel during the World Governments Summit in Dubai, Anwar Gargash, diplomatic adviser to the president of the United Arab Emirates, said the region did not need another crisis and stressed the importance of a diplomatic solution.
“I think the region has gone through various calamitous confrontations. I don’t think we need another one,” Gargash said.
Against this backdrop, U.S. Special Envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi will meet in Istanbul on Friday (6 February) to revive diplomacy over Iran’s long-running nuclear dispute.
A regional diplomat said representatives from countries such as Saudi Arabia and Egypt will also take part, amid fears of a new regional war.
Tensions have been increasing amid a U.S. naval buildup near Iran, following a violent crackdown against anti-government demonstrations last month, the deadliest domestic unrest in Iran since its 1979 revolution.
Trump, who stopped short of carrying out threats to intervene during the crackdown, has since demanded Tehran make nuclear concessions and sent a flotilla to its coast.
He said last week Iran was "seriously talking", while Tehran's top security official Ali Larijani said arrangements for negotiations were under way.
Asked on Monday (1 February) about the prospect of a deal, Trump told reporters at the White House talks were happening.
"We have ships heading to Iran right now, big ones - the biggest and the best - and we have talks going on with Iran and we'll see how it all works out ... if we can work something out, that would be great and if we can't, probably bad things would happen."
Iranian sources told Reuters last week that Trump had demanded three conditions for resumption of talks: Zero enrichment of uranium in Iran, limits on Tehran's ballistic missile programme and ending its support for regional proxies.
Iran has long rejected all three demands as unacceptable infringements of its sovereignty, but two Iranian officials told Reuters its clerical rulers saw the ballistic missile programme, rather than uranium enrichment, as the bigger obstacle.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tehran was considering "the various dimensions and aspects of the talks", adding that "time is of the essence for Iran as it wants the lifting of unjust sanctions sooner".
Türkiye and other regional allies have sought de-escalation.
"Qatar, Saudi Arabia, UAE and Egypt, as well as some other countries, will attend the Istanbul meeting. There will be bilateral, trilateral and other meetings," the diplomat said.
A Turkish ruling-party official told Reuters that Tehran and Washington had agreed to re-focus on diplomacy and possible talks this week, in a potential reprieve for potential U.S. strikes.
Ball in Trump’s court
The Iranian official said diplomacy is ongoing and stressed that talks should resume without preconditions. Iran is ready to show flexibility on uranium enrichment, including handing over 400 kg of highly enriched uranium and accepting zero enrichment under a consortium arrangement.
However, he added, for the start of talks, Tehran wanted U.S. military assets moved away from Iran.
"Now the ball is in Trump's court," he said.
Tehran's regional sway has been weakened by Israel's attacks on its proxies from Hamas in Gaza to Hezbollah in Lebanon, the Houthis in Yemen and militias in Iraq, as well as by the ousting of Iran's close ally, former Syrian President Bashar al-Assad.
In June last year the United States struck Iranian nuclear targets, joining in at the close of a 12-day Israeli bombing campaign. Since then, Tehran has said its uranium enrichment work has stopped.
Recent satellite imagery of two of the targeted sites, Isfahan and Natanz, appears to show some repair work since December, with new roofing over two previously destroyed buildings.
No other rebuilding was visible, according to the imagery provided by Planet Labs and reviewed by Reuters.
Washington-based think tank ISIS said satellite images from late January showed construction work on tunnel entrances at Isfahan that could "indicate a preparation for additional military strikes" as was seen ahead of last year's U.S. strikes.
It could also signal the movement of assets from other facilities, it added.
The United Nations nuclear watchdog, the International Atomic Energy Agency (IAEA), said it has called on Iran repeatedly to find out what happened to the highly enriched uranium stock since the June attacks.
Western countries fear Iran's uranium enrichment could yield material for a warhead. Iran says its nuclear programme is only for electricity generation and other civilian uses.
The Iranian sources said Tehran could ship its highly enriched uranium abroad and pause enrichment in a deal that should also include the lifting of economic sanctions.
Oil prices fell after the U.S. expanded economic sanctions on Iran, as Tehran vowed to retaliate and warned it had tools to respond, raising concerns over potential disruption to regional oil supplies.
Ukraine’s President Volodymyr Zelenskyy said on Monday that Kyiv wants peace but will not surrender to Russia, as foreign leaders joined Independence Day events marking 35 years since Ukraine’s independence.
Only four commodity vessels crossed the Strait of Hormuz on Sunday, following 13 transits a day earlier, as disruptions continue to restrict traffic through the key energy chokepoint.
A newly created pro-government political party has secured a commanding victory in Kazakhstan's snap parliamentary election, according to exit polls, strengthening President Kassym-Jomart Tokayev's influence at a pivotal moment in the country's political transition.
Kyiv has recently received a small number of U.S.-made Patriot interceptors capable of downing Russian ballistic missiles, Ukrainian President Volodymyr Zelenskyy has said. It comes as Britain and France pledged stronger military support for Ukraine.
Türkiye has established four sub-commissions to oversee the implementation of a new legal framework tied to the disarmament of the outlawed Kurdistan Workers’ Party (PKK).
Central Asia is moving beyond experiments with digital assets as governments begin putting new forms of digital money into practice.
Parents in Gaza are being urged to stop their children flying kites after Israel threatened tougher military action over those drifting across the border.
Armenia is “free” to leave the Collective Security Treaty Organisation (CSTO), Kremlin Spokesperson Dmitry Peskov has said. He made the remarks after Armenian Prime Minister Nikol Pashinyan said he would be “very pleased” if the Russian-led military alliance expelled Armenia.
Armenia’s Anti-Corruption Committee has disclosed details of a criminal case involving former President Robert Kocharyan, saying he and five other people - including his son - have been detained as part of a corruption investigation.
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