Gaps persist over agreement to end war, oil markets on edge due to uncertainty

Officials from the United States and Iran held indirect, low-level technical talks in Doha on Wednesday with third-party mediators, confirmed by diplomats and media outlets, as the two sides remain far apart on core provisions of their initial war-ending framework.

The closed-door session featured no face-to-face contact between US and Iranian delegations, according to Xinhua News Agency. Anonymous diplomatic sources said officials from Qatar and Pakistan mediated the technical negotiations covering at least three working groups focusing on nuclear issues, diplomatic affairs, financing matters and the unfreezing of Iran's overseas assets.

The diplomatic push came after Iranian Parliament Speaker Mohammad Bagher Ghalibaf said Tehran prioritizes diplomatic solutions, while emphasizing that preconditions must be met before final negotiations with Washington can resume.

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"We are pursuing dialogue, but if the dialogue is not implemented, we are also prepared for war and will respond accordingly," Ghalibaf, who also serves as Iran's chief negotiator, said in a state television interview on Tuesday.

Reuters reported earlier that mediators would likely act as intermediaries to relay official messages between Washington and Tehran during the closed-door consultations.

Iran and the US agreed to an interim deal in June that calls for Tehran to dilute its stockpile of enriched uranium. In return, the pact also waives US oil sanctions on Iran, calls for free traffic through the Strait of Hormuz and gives each side 60 days to hammer out broader agreements.

They have held indirect negotiations before. However, the two previous rounds collapsed and preceded the 12-day war Israel launched against Iran last year and this year's war, launched jointly by the US and Israel on Feb 28.

The Strait of Hormuz has faced severe disruption amid ongoing clashes, triggering mounting global energy market jitters. Last week, amid attempts to reopen Oman's territorial waters for shipping from the Gulf, reciprocal cross-border strikes heightened fears of renewed negotiation breakdowns.

Iranian state television reported on Wednesday that a commercial vessel ran aground in the strait after failing to follow Iran's designated navigation route.

Oil prices edged higher on Wednesday, while Asian equities fluctuated in early trade, weighed by uncertainties over diplomatic progress and vital Hormuz shipping accessibility.

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"Unless there is a fresh understanding between Washington and Tehran, the market may wait and watch for sustained peace and quiet before crude resumes bearish momentum," Vandana Hari, founder of oil market analysis provider Vanda Insights, told Reuters.

In Tehran, giant portraits of late supreme leader Ali Khamenei have been installed at the city's Grand Mosalla. Iran is ramping up preparations for his state funeral on Saturday, with the leader's remains lying in state at the sprawling religious complex.

The ceremonies are expected to draw between 15 and 20 million mourners, according to officials, which would make it the biggest state funeral in the country's history.

Agencies contributed to this story.

Contact the writers at cuihaipei@chinadaily.com.cn