finance
US-Iran Ceasefire Takes Effect
Prospects for a negotiated end to the month-old U.S.-Iran conflict diminished after Tehran delivered what officials called an unacceptable counterproposal to a U.S. ceasefire offer. Oil prices rose sharply on the news while European and U.S. stock futures fell. Energy Secretary warned that military action to reopen the Strait of Hormuz could resume within days if talks fail.
May 12, 1:15 AM·3m read2 sources
FO
news.ycombinator.comAudio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Hopes for a swift resolution to the U.S.-Iran conflict faded Sunday after Tehran responded to a U.S. ceasefire proposal by insisting that talks address the war on all fronts, including Lebanon. The month-old truce is now on life support and unbelievably weak, one official told reporters.
Oil prices climbed in response with U.S. crude futures rising 2.7 percent to nearly $98 a barrel and Brent crude reaching $104. European stocks were set to open lower while U.S. equity futures also declined. Gold prices fell as investors weighed the risk of a prolonged energy crisis.
naval blockade. Nuclear issues would be discussed during a 30-day window but Tehran rejected demands to dismantle its nuclear facilities and suspend uranium enrichment for 20 years. Iran also sought the release of its frozen funds abroad. The pause in military escort operations known as Project Freedom was intended to allow time for negotiations.
A few commercial ships had successfully transited the strait under U.S. destroyer protection before the effort was halted less than two days later. Officials said the pause followed an Iranian request to pursue a deal instead. Energy Secretary told CBS News that if no clear path to a negotiated settlement emerges in the coming days the U.S. will return to military methods to reopen the strait.
The operation to clear the waterway is described as a multi-day challenge rather than a short endeavor. stock futures tied to the Dow Jones industrial average fell 0.40 percent while S&P 500 and Nasdaq futures also declined. The U.S. dollar strengthened modestly against the euro and yen.
