US Secretary of State Marco Rubio met with United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi on Wednesday, aiming to reassure Persian Gulf allies about the reliability of a temporary peace deal with Iran. Rubio also plans to visit Kuwait and Bahrain. These visits follow the commencement of talks between the US and Iran in Switzerland regarding a more formal settlement of their nearly four-month conflict.
A representative from the Pakistani Foreign Ministry, a key mediator, stated that the initial round of discussions has concluded, with further negotiations scheduled for next week. Rubio‘s meetings come after a day filled with mutual accusations regarding the progress of the talks. President Donald Trump asserted that Tehran would only be able to use billions of dollars from unfrozen accounts to purchase food and medicine from the US, and that the Islamic Republic had agreed to allow International Atomic Energy Agency inspections at its nuclear sites. Iran disputed both claims, marking the latest instance of conflicting statements from both sides on critical issues at the start of the planned 60-day negotiation period.
War criticism and Strait of Hormuz
These disputes unfold amid increasing criticism of the war in the US, which has led to a sharp rise in global energy prices due to Iran’s closure of the vital Strait of Hormuz. The Republican-led Senate voted on Tuesday to end the conflict, delivering a rare symbolic rebuke of Trump. While the resolution is unlikely to compel the administration to alter its strategy, it highlights the lack of domestic support for the president’s approach.
Trump responded in a social media post, stating that the Senate had chosen to hold an “untimely and foolish vote on the War Powers Act” at a time when he had “Iran on the ropes”, was “ready to topple it”, and was “ready to give us practically everything”. “These senators have just made my job harder, but I will do it one way or another,” he wrote.
Meanwhile, Iran and Oman have announced plans to begin working on an agreement regarding the future management of the Strait of Hormuz, including transit fees. This has raised concerns among traders and shipowners about the potential imposition of tolls. The industry has warned that such fees would violate international maritime law and set a dangerous precedent that could be replicated in other waterways. “No country has the right to impose tariffs or fees on an international waterway,” Rubio stated after arriving in Abu Dhabi on Tuesday. “We expect that to be the case here as well.”
More ships are now passing through the strait with their satellite signals activated, indicating growing confidence in navigating the world’s most crucial energy chokepoint. Oil prices continued to decline on Wednesday, with Brent trading 2% lower at $75.50 a barrel. This marks a decrease from a high of around $125 at the end of April, approaching pre-war levels.
Israel-Hezbollah conflict
Another unresolved issue is Israel’s conflict with Iran-backed Hezbollah in Lebanon, which Iran insists must end for any permanent agreement to be reached. Israel maintains that it needs to keep a military presence in southern Lebanon to protect its northern communities from the militant group, which Iran describes as a violation of the temporary agreement. This week, the fifth round of talks between Israel and Lebanon, mediated by the US, is taking place in Washington.
According to Israel’s ambassador to the UN, Yehiya Laiter, the discussions are complicated by the terms of the agreement between the US and Iran. Israel views the disarmament of Hezbollah and its withdrawal from southern Lebanon as prerequisites for negotiations, the ambassador noted in a written statement. “Let me be clear: Israel will act against both immediate and new threats to its citizens and soldiers,” said Laiter.
Trump‘s remarks on the state of negotiations with Iran highlight his defensive stance on the deal amid criticism, including from defense hawks within his own party. His assertion that the freed funds will be used for US agricultural products may resonate with farmers, a key Republican constituency, ahead of the midterm elections in November.
Source: Bloomberg