Pakistan’s Interior Minister Mohsin Naqvi said Tuesday that Iran and Pakistan have made 'significant progress' in talks aimed at restoring an interim ceasefire between Tehran and Washington, following a meeting in the Iranian capital.
The discussions focused on de-escalating hostilities and reopening the Strait of Hormuz, a critical shipping route where traffic has slowed to its lowest level since May 7. Al Jazeera reported only one commodity vessel traversed the strait on Monday, underscoring regional tensions.
The talks come as the U.S. intensifies pressure on Iran. U.S. Treasury Secretary Scott Bessent announced new economic sanctions targeting Iran’s financial networks, describing the measures as an 'onslaught against Iran's financial connections around the globe.' The sanctions aim to disrupt Tehran’s 'enablers' and remove from the dollar system any entity facilitating money laundering on Iran’s behalf. While the measures have not yet taken effect, the White House has set a timeline for countries to wind down activities with Iran.
Bessent warned that 'the clock has just started ticking' for entities supporting Iran’s financial infrastructure. The announcement follows the collapse of a June memorandum of understanding between the U.S. and Iran, which had sought to halt hostilities and establish a lasting peace agreement.
Oil markets reacted to the developments. Brent crude futures, the global oil benchmark, were last trading at $91.73 per barrel, down 0.5%. Earlier in the session, Brent was reported at $84.92, down 2.69%, while West Texas Intermediate (WTI) crude fell to $79.94, down 2.94%.
ING analysts noted that markets remain uncertain over the timeline for trading partners to reduce ties with Iran, adding that further details are needed to assess the potential impact on global energy flows.
