Iran’s Leader Gives Government Room to Negotiate With US

Brent crude fell 6% to $106.65 a barrel on Monday. The drop came after Iranian President Masoud Pezeshkian said Supreme Leader Mojtaba Khamenei had given the government “certain authorities” to negotiate with the United States. The announcement raised hopes for diplomacy, though neither side has announced a deal. For oil traders, the shift was sharp: prices had ended October at a six-month high amid fears the war could worsen. ¹

Iranian and Qatari officials have held days of talks aimed at ending the war. A draft proposal is circulating, and another meeting is possible, an official briefed on the discussions told Reuters. Qatar is mediating between Tehran and Washington. Pezeshkian said Iran would try to resolve the problem through dialogue, but insisted the country would not surrender under military pressure. He also promised subsidies and lower prices for basic goods.^1,2 The talks are taking place alongside a US blockade of Iranian ports.

Iran has demanded an end to the blockade and the release of frozen funds. A reported proposal would trade access for UN nuclear inspectors for relief from sanctions. The United States has not accepted Iran’s terms, and Khamenei still needs to approve the proposal. A breakthrough could ease fears about shipping through the Strait of Hormuz, a key oil route. Those fears have grown after attacks on tankers and a drop in global oil stocks.^1,3 The White House must still weigh any proposal Iran accepts.

The White House has signaled it prefers diplomacy, but US Secretary of State Marco Rubio said President Donald Trump had not made a decision while talks continued. Trump said the war would end “very soon, one way or the other.” For now, the clearest market signal is a drop in oil, not a settled peace. The next concrete step is whether Tehran’s leaders approve the proposal and Washington responds. ³