What’s happened: President Trump announced on Monday that the US and Iran “have had over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities.”
- As a result he was, “postponing any and all military strikes against Iranian power plants and energy infrastructure for a five day period.”
- In a CNBC interview and comments to reporters, Trump said Iran would abandon its nuclear weapons ambitions, stop uranium enrichment, hand over its 60% enriched uranium stocks, and reopen the Strait of Hormuz under joint control; he described this as“great for Israel.”
- Later Prime Minister Netanyahu responded saying that he had spoken to Trump who “believes there is an opportunity to leverage the tremendous achievements we have reached alongside the US military to realise the goals of the war through an agreement” which Netanyahu clarified “will safeguard our vital interests.”
- Netanyahu added that Israel was continuing to strike in both Iran and Lebanon. “We are smashing the missile programme and the nuclear programme, and we continue to deal severe blows to Hezbollah.”
- There are conflicting reports whether these ‘talks’ are directly between US envoy Witkoff and the Iranian Foreign Minister Araghchi, who is acting on behalf of the new Supreme Leader Mojtaba Khamenei. Or alternatively that these talks are indirect and being mediated by diplomats from Egypt, Turkey and Pakistan.
- In any event the Iranian’s have reportedly rejected all of Trump’s claims. Foreign Ministry spokesman Esmaeil Baqaei, denied direct or indirect contacts, saying Trump backed off due to fears of attacks on regional power grids, and that they have ignored messages passed on via third parties.
Context: The timing of Trump’s announcement just as the markets opened in the US, was seen as a deliberate move to calm the financial markets and step the rise in the price of oil. The ploy seemingly worked, as oil prices dropped 13% below $100 a barrel. Trump also backed waiving Iranian oil sanctions to ease global supply and cut costs.
- As ever with Trump it is unclear if these are genuine negotiations, or merely an effort to calm financial markets and buy more time.
- Israel was apparently made aware of the diplomatic efforts in advance and has been reassured by the Americans that any deal will meet with their shared war objectives.
- Israel is confident that it has substantially damaged and degraded Iran’s ballistic missile programme, and future production capacity. Israel can also claim it has set the conditions for a potential regime change, even though there are currently no indications that this is imminent. The biggest issue that could be solved though renewed negotiations is the diluting or removal of Iran’s stockpile of highly enriched uranium.
- The US are signalling that they are interested in engaging with the Speaker of Iranian Parliament Mohammad Ghalibaf, who is considered to be closest to the new Supreme Leader and one of the key decision makers. This in contrast to Foreign Minister Araghchi, who has been derisorily described as a ‘fax machine’ (an antiquated form of relaying messages).
- Veteran Israeli analyst Ehud Yaari suggests that the Iranians appear serious, and that their opening position includes:
- Suspending their missile development programme for five years
- Reducing their enrichment of uranium
- Discussing the status of the 450 kg of enriched uranium at 60 per cent
- Agreeing to inspections and oversight by the IAEA over their remaining centrifuges
- Ending the funding of regional proxies, including Hezbollah and Hamas
- Official messages emanating from Iran from senior IRGC commanders, suggest the Islamic Republic remain committed to continuing their missile attacks on Israel and the region.
- Israel’s current stance balances optimism over their achievement in the war so far and inherent scepticism over trusting any agreement with Iranian under its current leadership
- Netanyahu has recalled former minister and trusted adviser Ron Dermer to lead Israel’s dialogue with the US. This builds on his visit last week to Saudi Arabia to reportedly discuss a potential agreement with Lebanon.
- In the meantime attacks continue. Iran continues to fire ballistic missiles towards southern, central and northern Israel, whilst Hezbollah continue to attack northern Israel. Yesterday saw five hours of continuous bombardment from Lebanon.
- Overall, the IDF has so far struck more than 3,000 regime targets and overnight the IAF engaged more than 50 sites, including missile sites. Yesterday, the IDF struck regime targets, including a Islamic Revolutionary Guard intelligence headquarters, a central intelligence headquarters, ammunition warehouses, and air defence systems.
Looking ahead: Reports suggest that efforts are underway to set up a direct call possibly later today between the Parliament Speaker Ghalibaf and a senior US official, possibly Vice President Vance.
- Trump’s new self-declared deadline of five days will expire at the end of this week, whereby it should be clearer if the war will indeed come to an end and under what conditions.
- There are further suggestions that Pakistan will host and mediate talks between the Iranians and US officials in Islamabad this weekend.
- Meanwhile, five thousand US Marines are also on their way to the region, with reports suggesting they could be used in a potential ground operation to secure critical energy sites.
- It is assumed that any US deal will be binding on Israel too, but not clear if it will include the fighting in Lebanon.
