Oil prices surged as uncertainty grew over shipping routes in the Strait of Hormuz, a critical waterway for global energy supply. Iran claimed it shot down a US MQ-9 Reaper drone over the Strait of Hormuz, raising fears of further military escalation. The Islamic Revolutionary Guard Corps said the drone was brought down by an air defense system operating in the region. Iran also reported intercepting more than thirty US drones since early February, although these claims have not been independently verified.
The situation has prompted increased diplomatic activity in the region as countries seek to prevent broader conflict. An Iraqi politician claimed that Prime Minister Ali al-Zeidi was mediating between Iran and the United States to ease tensions. According to Iranian state media, al-Zeidi reportedly traveled to Washington and then Tehran carrying messages from the US. The politician also said that the Iraqi leader tried to encourage Tehran to show flexibility on disputed issues to open space for renewed negotiations. However, these claims have not been confirmed by official sources in Baghdad, Washington, or Tehran.
Pakistan’s Foreign Minister invited Iran’s foreign minister to visit Pakistan as regional tensions rose. The two ministers discussed regional and international issues, including the situation in occupied East Jerusalem.
Turkey’s foreign minister held talks with his Kuwaiti counterpart to discuss regional developments. Hamas urged mediators to press Israel for a full ceasefire amid its latest military actions in Gaza. The Palestinian group said it had been in contact with mediators and asked them to intervene directly to compel Israel to honor a ceasefire. Hamas warned that the continued offensive was delaying progress on peace negotiations and the next steps in their framework.
Iran’s Foreign Ministry called for global action against Israel over its treatment of Palestinians. The statement coincided with the anniversary of the death of Hamas leader Ismail Haniyeh, who was killed in an explosion in Tehran. Iran reiterated its support for the Palestinian cause and urged international leaders to hold Israel accountable.
The US military has requested creative strategies from troops and analysts to pressure Iran, as traditional military actions have failed. This request comes after President Trump paused new attacks on Iran, signaling a shift toward diplomacy. Iran said it is not currently talking with the US and instead is working with Oman on a temporary safe shipping route through the Strait of Hormuz. Iran’s foreign ministry spokesperson said that an agreement with Oman alone would not reopen the strait, and that the situation depends on ending US aggression. The talks with Oman are ongoing, and Iran said progress has been made after nearly a week of discussions.
Iraq responded to rising shipping risks by offering steep discounts on Basrah crude to buyers. The state oil marketer SOMO provided significant price reductions for August-loading Basrah Medium and Basrah Heavy crude. The move came as tanker traffic through the Strait of Hormuz slowed due to reported attacks on vessels. Despite the risks, some shipments from Iraq continue, including cargoes heading to China.
Iran executed two nationals accused of sharing military coordinates with Israel during the ongoing conflict. Pakistan and Qatar are expected to send emissaries to help facilitate talks between the US and Iran after Trump paused strikes. These diplomatic efforts follow calls from Saudi Arabia, the UAE, and other regional allies to reduce tensions. The upcoming discussions will be handled through intermediaries rather than direct talks between Washington and Tehran.
President Trump is facing pressure to end the Iran war as public support declines ahead of midterm elections. Analysts believe a deal on reopening the Strait of Hormuz may be possible, but broader agreements on Iran’s nuclear program remain difficult.
Turkey condemned Israeli strikes on Gaza and accused Prime Minister Netanyahu of undermining peace efforts. Ankara urged the international community to take a stronger stance against Israel and support peace in the region.
Trump said a deal on the Strait of Hormuz is imminent and confirmed that fresh negotiations with Iran would begin. He announced he shelved a major military strike after regional allies urged restraint, saying Gulf partners preferred diplomacy over conflict.
Meanwhile, two Saudi oil tankers crossed the Bab el-Mandeb Strait, including one carrying 2 million barrels to India. Shipping through the Strait of Hormuz slowed following reported attacks on vessels, increasing concerns over supply disruptions. A tanker was reportedly targeted northeast of Khasab, Oman, with the UK Maritime Trade Operations confirming a maritime security incident. The vessel, believed to be VELOS AMBER, was attempting to transit the southern route of the Strait under US naval cover.
Iran said it is close to reaching an agreement with Oman on a new maritime route through the Strait of Hormuz. Iran said this proposed route is separate from reopening the main shipping corridor, which it says remains affected by tensions with the US.
Trump confirmed that fresh negotiations with Iran will begin after pausing planned strikes. He said regional allies, including Saudi Arabia, the UAE, and Qatar, urged restraint, while Iran denied requesting a delay in any military action.
Oil prices fell more than four percent after Trump paused strikes and announced new talks with Iran. Investors reacted to the easing of geopolitical tensions, reducing concerns over supply disruptions.
IMAGE: Photo: Wikimedia, taken 2012-02-19, Public domain
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