Reuters with an update on talks, will be of interest to the oil traders.
essential issues remain to be negotiated, the top Iranian negotiator said on Thursday
“We achieved good, tangible progress on the different issues …. we are closer than ever to an agreement but there are still essential issues under negotiations,” Iranian Deputy Foreign Minister Abbas Araqchi was quoted as telling Al Jazeera television.
Once the agreement is renegotiated Iranian oil should return to markets within months. Still a ways off though.
Background to this is
The US withdrew from the agreement in 2018
Iran and six world powers have now been negotiating in Vienna since April
There’s a sequencing problem in Iran nuclear negotiations.
Iran says that once the US returns to the agreement and lifts sanctions, it will eliminate its nuclear stockpile. The US wants Iran to go first. Negotiators are trying to work out something where they act at the same time.
Yellen seems to be indicating that Iran needs to go first and they say that’s a non-started because it was the US that left the agreement, not them. So the US should come back into compliance first.
I don’t think this is what’s giving the latest lift to oil, which is up 38-cents to $66.60 — which is highest since May 18.
There are positive indications on an Iran nuclear deal, something that could add 2 million barrels per day to global oil supply.
A fourth round of negotiations began today in Vienna and both sides sound optimistic.
Here’s what a senior State Dept official said in a media briefing yesterday:
Let me just start by saying that there’s been a lot of reporting about whether this is the final round, whether this is the decisive one, whether a deal needs to be reached in the coming weeks. And I would simply say that we feel that the last three rounds have helped to crystallize the choices that need to be made to – by Iran and by the United States in order to come back into a compliance-for-compliance return – well, returning to mutual compliance with the JCPOA. We think that those – that it’s a pretty clear set of choices that needs to be made, because we’re not inventing something new. It is written in the JCPOA. And if Iran makes the political decision that it genuinely wants to return to the JCPOA as the JCPOA was negotiated, then it could be done relatively quickly and implementation could be relatively swift.
It seems to me that the old nuclear agreement is on the table. Iran took that deal before and so I don’t know why they wouldn’t take it again.
The official said that from the US side, there is no hesitation:
White House officials on Sunday denied Iranian state media reports that the US has reached an agreement with Iran to lift economic sanctions against the country, saying that there is still much to be negotiated over the coming weeks.
“There is no deal now,” national security adviser Jake Sullivan said Sunday on ABC News’ “This Week,” adding that “there’s still fair distance to travel to close the remaining gaps.”