Iran, US Harden Stances as Pakistan Says Deal Is Near

Pakistan’s defense minister said the US and Iran are “close to some sort of arrangement” over the Strait of Hormuz despite toughened positions in stalled talks. Any progress on Hormuz is likely to affect regional security perceptions and, by extension, oil supply risk premia. The news is modestly negative overall given the underlying tension, but potentially improves the odds of de-escalation.

Analysis

Pakistan’s defense minister said the US and Iran are “close to some sort of arrangement” over the Strait of Hormuz despite toughened positions in stalled talks. Any progress on Hormuz is likely to affect regional security perceptions and, by extension, oil supply risk premia. The news is modestly negative overall given the underlying tension, but potentially improves the odds of de-escalation.