Iran Supreme Leader Gives Nod For US Peace Talks; Brent Crude Plunges To $106

Possible diplomatic breakthrough between Tehran and Washington triggers sharp sell-off in global oil prices.

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Oil slipped as investors weighed the prospect of easing tensions between the two countries.
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Summary is AI-generated, newsroom-reviewed
  • Iran is open to resolving its standoff with the US through diplomacy, says President Pezeshkian
  • Supreme Leader Khamenei granted the government authority to pursue peace talks with Washington
  • Iran will not back down from US threats and calls for public unity and resilience
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Iranian President Masoud Pezeshkian said Monday that Tehran was open to resolving its standoff with Washington through diplomacy, adding that Supreme Leader Mojtaba Khamenei had given the government “certain authorities” to pursue peace talks.

Iranian state news agency IRNA reported that Pezeshkian had said the government would seek to resolve the crisis through dialogue, offering no details on the scope of the authority granted or the possible terms of negotiations.

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The development points to a potential opening for diplomacy but offers no indication that formal negotiations are underway or that a breakthrough is within reach.

Speaking at a meeting with governors and mayors of major cities, Pezeshkian also said Iran would not back down in the face of threats of war from the United States. 

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He called for public unity and resilience, urging cooperation to overcome what he described as challenges and crises created by Iran's adversaries.
Meanwhile, Iranian Foreign Minister Abbas Araghchi said consultations through intermediaries had become “very intense”, according to state-run IRNA news agency, indicating that diplomatic communication may be gaining momentum.

However, Tehran has also maintained a firm position on the strategically important Strait of Hormuz. Araghchi said its reopening would be conditional on Iran's terms, signalling that maritime access remains an important point of leverage amid the broader confrontation.

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Pezeshkian's statement is significant given that decisions concerning war and negotiations have traditionally remained under the supervision of Iran's Supreme Leader and the Supreme National Security Council.

The latest remarks therefore point to a possible delegation of negotiating responsibilities to the government, rather than a fundamental shift in Iran's decision-making structure.

A US official has indicated that Washington remains open to talks with Tehran, although other options are also being considered. Neither side has publicly outlined the terms or scope of a possible diplomatic engagement.

Meanwhile, Brent crude futures for January 2027 delivery fell $7, or 6.17%, to $106.43 per barrel on Monday, according to real-time market data, as investors weighed the prospect of easing tensions between the two countries.

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