Iran and Pakistan said on Tuesday that talks on a potential interim agreement with the U.S. made "significant progress," following a meeting between Pakistani Interior Minister Mohsin Naqvi and Iranian officials.
The discussions centered on preventing further escalation of the conflict and reopening the Strait of Hormuz, a critical shipping route where oil traffic has plummeted. Al Jazeera reported that only one cargo ship passed through the strait on Monday, the lowest daily volume since May 7. Traffic had previously collapsed after a June memorandum of understanding between Washington and Tehran was abandoned following attacks on oil tankers in the region.
U.S. Treasury Secretary Scott Bessent announced new economic sanctions on Monday, describing them as an "economic attack" targeting Iran’s financial networks. The measures aim to isolate Tehran by cutting off entities facilitating money laundering or other transactions on its behalf. Bessent warned that any party found supporting Iran’s financial system would be barred from the U.S. dollar system, stating that "the clock has just started ticking."
The White House has set a deadline for countries to sever ties with Iran, though no implementation date for the sanctions was specified. The announcement follows a joint U.S.-Israel attack in late February that marked the start of hostilities between Washington and Tehran.
Oil markets reacted to the developments, with Brent crude futures trading 0.5% lower at $91.73 per barrel. Analysts at ING noted that the market remains uncertain about the timeline for commercial partners to comply with the U.S. measures.
Pakistan’s armed forces said the meeting with Iranian officials concluded "in an extremely positive way," while Naqvi described the exchange as "very constructive." The discussions come amid broader regional tensions, including heightened security concerns around the Strait of Hormuz and Israel’s ongoing role in the conflict.
