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Trump: US-Iran deal to reopen Strait of Hormuz by Friday

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US President Donald Trump said Monday (Jun 15) that ships were again sailing through the Strait of Hormuz and the key oil conduit would be “completely open” by Friday after Washington and Tehran reached a deal to end the Middle East war.

The restoration of one of the world’s most critical energy chokepoints would be a huge step towards ending months of deadly conflict and economic instability ignited by US-Israeli strikes on Iran in late February.And ships are starting to go, a lot of ships with Oil, out of the Strait of Hormuz,” Trump said, later adding that he did not “think we will need much help” keeping the waterway open.

Iranian television said on Monday evening that three oil tankers and two cargo ships carrying products had crossed through the area which had been under a US naval blockade.

Iran had blockaded the strait since the start of the war, sending oil prices skyrocketing and stoking fears of a sustained inflation shock. The US then prevented transport in and out of Iranian ports.

The peace accord was to be signed Friday in Switzerland, the US, Iran and mediator Pakistan announced.

But a senior US administration official said Trump, Vice President JD Vance and Iran’s parliamentary speaker Mohammad Bagher Ghalibaf had already electronically signed the text.“The president wanted to sign it personally because he wanted to show his … commitment to bring this through to a successful resolution,” the official said.

Asked at the G7 in France when the text will be disclosed, Trump said: “It’s a very powerful document, and I want it to be publicised. So, probably quite soon.

The pact brought a “immediate end” to the war, with talks on a “final agreement” to be reached within two months, Iran’s Deputy Foreign Minister Kazem Gharibabadi said.

His country’s military praised the pact as a victory that had “humiliated” the US and Israel, and President Masoud Pezeshkian termed it “a great achievement” for the region.

But Iranian Foreign Minister Abbas Araghchi took a more cautious line.We have a history of not keeping our promises,” he said. “We have a history of agreements being ripped up. It’s all in our heads.

LEBANON ASKS

Iran’s foreign ministry spokesperson Esmaeil Baqaei said Washington should ensure Israel ceases fighting in Lebanon under the accord.

Early March saw Lebanon drawn into the war after Iran-backed Hezbollah fired missiles into Israel following the killing of Iran’s supreme leader, triggering Israeli raids and a ground invasion.The US should live up to its pledges. Baqaei remarked that “it must make the Zionist regime respect its own in terms of Lebanon.”

Israeli Prime Minister Benjamin Netanyahu said Israeli forces would stay in Lebanon, Syria and Gaza “as long as necessary.”

He said the conflict with Iran had saved Israel from the prospect of “nuclear annihilation” by the Islamic republic. Israeli figures across the political spectrum denounced the pact.

Lebanese President Joseph Aoun said he believed the accord would be a “positive step towards reducing tensions” in a chat with Araghchi.

Lebanese state media later claimed the first death strike since the announcement stating the Israeli airstrike in the south killed one person.

Hezbollah, which hailed Iran for demanding Lebanon be included in the pact, said it had pushed back an Israeli force aiming to “advance” into southern Lebanon.

VAGUE TERMS

Weeks of difficult discussions and fears of renewed hostilities preceded the pact, but important elements remain unclear.

Washington had “pledged” to release frozen Iranian funds overseas and to pay Tehran damages for the conflict, Baqaei claimed.

Iran’s Mehr news agency stated the US would release $12 billion in frozen assets before negotiations.

Tehran would seek the UN Security Council’s ratification after negotiations on a final accord on its nuclear programme, Baqaie said.

That might be controversial, with Washington pushing to terminate Iran’s nuclear ambitions and its stockpile of highly enriched uranium, which is alleged to have been buried by US strikes last year.

Trump told The New York Times that the US was still discussing whether Iran would agree to cease enrichment for 20 years, suggesting he could be willing to settle for 15.

Baqaei said the costs Iran would levy on ships using the Hormuz passage would be for maritime services, not tolls.

Traders wagering the reopening of a route that normally delivers around 20 per cent of the world’s crude will ease strain on energy supply pushed oil prices significantly lower and buoyed global markets.

Oil prices tumbled over 5 percent toward $80 a barrel after surging above $110 soon after the battle began. The Dow established a fresh record, and the Nasdaq soared more than 3 percent.

In Tehran, English instructor Arya, 38, claimed “our people will not return to normal.“They realised Trump wasn’t on their side,” he continued.

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IHC forms larger bench to hear plea against PTI’s Sept 27 protest

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The Islamabad High Court (IHC) has issued a written decision on a petition challenging Pakistan Tehreek-e-Insaf’s (PTI) scheduled September 27 protest and long march, while creating a three-member bigger bench to consider the matter.

The larger bench will comprise IHC Chief Justice Sarfraz Dogar, Justice Azam Khan and Justice Muhammad Asif. The bench is slated to hear the case on September 10.

Chief Justice Sarfraz Dogar issued a three-page written order from the last session and directed the chief secretaries and inspectors general of police of all four provinces to come before the court in person on Thursday.

PTI finalises backup protest plan if Minar-e-Pakistan demonstration is denied permission

The court also summoned the Islamabad chief commissioner, Islamabad IG and deputy commissioner in their personal capacity. The advocate generals of all four provinces and Islamabad have also been asked to assist the court in the proceedings.

The petition was submitted by a businessman who contended that PTI’s intended demonstration could disrupt citizens and economic activity in Islamabad. His counsel informed the court that legislation governing protests in the capital already exists and highlighted concerns about the likely use of government resources during the planned mobilisation.

During the previous session, the petitioner’s lawyer also referred to PTI’s 2024 protest and brought relevant remarks and newspaper reports before the court. He suggested that protests should not be utilized to exert pressure on governmental institutions and judges.

The court remarked that the subject was of substantial importance and, in view of its sensitivity, issued a notice to the Attorney General for Pakistan for help in the case. The court then determined that the dispute should be heard by a larger bench.

The plea came after PTI organized a September 27 rally and long march towards Islamabad. The party has said the mobilisation is focused at getting access to party founder Imran Khan for his family and personal doctors, as well as raising concerns regarding his legal and prison-related affairs.

The IHC has fixed the subject for further hearing on September 10, when the summoned officials are likely to appear before the three-member bigger bench.

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Iran says it caught US underwater drone in Strait of Hormuz

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Iran’s Revolutionary Guards said on Tuesday it has captured a U.S. uncrewed submarine at the entrance to the Strait of Hormuz, offering a rare insight at how underwater drones are being ​used in military operations.

Iranian state media reported the craft was a Dive-LD, a ​large autonomous underwater vehicle made by California defense firm Anduril. The 19-foot (5.8-metre) ⁠submersible can carry out duties like mine countermeasures, seabed mapping, intelligence collection and the ​inspection of undersea infrastructure such as cables and pipelines, the business has said. “We detained one ​of the most advanced, clever and unmanned submarines of the terrorist American army near the entrance to the Strait of Hormuz. This submersible is equipped with the latest technologies,” the Revolutionary Guards Navy said ​in a statement broadcast by Iranian state media.

In response, a Pentagon spokesperson revealed a ​underwater drone had “malfunctioned more than a day ago.” “It was surveying regional seas in support of ongoing operations. ‌The ⁠defective drone was an earlier model that neither collected sensitive data nor carried any classified sonar or radar technology,” the spokesperson stated.

Anduril confirmed the loss of one of its vessels, but minimized the seriousness of the incident. “Dive-LD is an attritable autonomous system, meaning it ​is built from the ​outset to operate ⁠in perilous conditions where loss of the vehicle is a predicted possibility,” a company representative stated.

The U.S. Navy is spending extensively in ​unmanned naval systems, including undersea and surface vehicles, as it seeks ​cheaper ways ⁠to monitor broad expanses of ocean, gather intelligence and track hostile ships and submarines without putting troops at danger.

According to Anduril’s website, Dive-LD can operate for up to 10 days ⁠without returning ​to base and is meant to dive to depths ​of as much as 6,000 metres (19,700 ft). Dive-LD units cost roughly $2.5 million each, U.S. military news site DefenseScoop ​reported in 2024.

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Dollar wobbles, oil’s dash to $100 chills sentiment, Yen stands big

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The Japanese yen was pinned near its best level since February on Wednesday, leaving the dollar on the ‌defensive as traders grappled with oil prices heading toward $100 a barrel amid an expanding war in the Middle East.

Iranian-backed Houthis in Yemen attacked several Saudi cities, drawing a U.S. partner further into a battle that has dragged on for more than six months, as U.S. forces struck multiple Iranian oil tankers and Iran threatened a U.S. station in Jordan.

Brent crude futures rose by more than 1.48% to $99.37 a barrel, weighing on global markets ahead of a U.S. inflation data on Friday that will set the stage for central bank meetings next week in the U.S. and Japan.

The currency market nudged the dollar down a touch in response, though some analysts said that was due to the yen’s swift rally over the past week.

The euro held constant at $1.1631 while the pound was last bought at $1.3546. ​The dollar index, measuring the U.S. currency against a basket of six major rivals, was at 98.15, near its lowest level in nearly two weeks.

OCBC strategists said the current increase keeps Fed policy implications from higher energy prices in focus, especially after last week’s robust U.S. payrolls report reignited expectations of another rate hike. “Higher oil and rates should help limit USD fall for now but we anticipate a more dramatic move will await confirmation from the impending inflation data,” they said in a note.

The yen has been under focus after its 4% surge in September that has altered the math for the popular carry trade in which investors borrow in yen at a low cost and invest in other currencies and assets yielding better interest.

The yen was stronger at 153.65 per dollar, close to the seven-month peak of 152.89 struck on Tuesday. The surge has been broad-based with the Japanese currency strengthening against the euro and sterling as well as favorite carry-trade targets such as the Mexican peso and Turkish lira.

The increase has been fueled by expectations of quicker tightening by the Bank of Japan and the return of offshore cash by Japanese investors and pressure from Washington for a higher yen.

Traders broadly expect the BOJ to hike rates by 25 basis points at its September 17-18 meeting but the rise will rest on if Governor Kazuo Ueda delivers hawkish comments and the wild card will be the Federal Reserve.Aninda Mitra, head of Asia macro and investment strategy at BNY Investments, stated “Much will depend on how the market prices in the Fed’s path of interest rates too.We estimate the Yen’s “fair value” to be in the 140’s and a further move to that area should not be a total surprise following what has clearly been an overshoot to the side of excessive Yen weakness.”

The Australian dollar gained 0.12% to $0.7225, just below a four-month high set in the previous session, in Pacific trade. The New Zealand dollar was up 0.16% at $0.5862.

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