Oil prices experienced volatility following US Vice President JD Vance's comments questioning Israel's actions against Hezbollah, raising concerns about the Middle East peace deal's stability. Brent crude fell 0.65% to $79.33 and WTI crude dropped 0.46% to $75.50.
The US and Iran announced a ceasefire agreement, expected to reopen the Strait of Hormuz and lift a naval blockade. However, on Tehran's streets, citizens express doubt about long-term stability due to unresolved issues like Iran's nuclear program and sanctions.
Iranian Foreign Minister Abbas Araghchi stated that Israel's ongoing operations in Lebanon constitute a violation of the ceasefire between Iran and the US, asserting that a breach on any front is a violation on all fronts. He held the US and Israel responsible for any consequences.
The annual Hajj pilgrimage in Mecca, Saudi Arabia, has officially begun with an estimated 1.5 million foreign pilgrims. This year's Hajj takes place during a ceasefire between the US and Iran, though Saudi Arabia has deployed air defense missiles as a precaution.
As a US-Iran ceasefire MOU nears completion, the release of Iran's frozen assets has become a major sticking point. Iran insists on immediate release upon MOU agreement, while the US links it to conditions like the Strait of Hormuz reopening and nuclear compliance.
Iran-US ceasefire negotiations are shifting from Pakistan to Oman as the preferred neutral venue, dealing a blow to Pakistan's leadership who sought to play peacemaker. Iranian Foreign Minister Abbas Araghchi made three visits to Islamabad in 48 hours, but no US envoys attended and no breakthrough occurred. Oman, which hosted secret 2012-2013 talks leading to the Iran Nuclear Deal, offers proven backchannel diplomacy, geographic relevance to Strait of Hormuz issues, and a reputation for neutrality that Pakistan lacks.
