President Donald Trump said on Wednesday that relations between the United States and Iran were improving following recent discussions in Qatar.
Trump told reporters that efforts toward Iran’s denuclearization were progressing well. He also described the latest meetings as positive, while acknowledging that the final outcome remains uncertain.
U.S. and Iran Hold Separate Talks in Qatar
U.S. and Iranian delegations were expected to participate in separate negotiations with mediators in Qatar.
The discussions followed renewed fighting around the Strait of Hormuz, which briefly raised concerns about the stability of the existing ceasefire.
According to The New York Times, officials from Qatar and Pakistan were set to meet with both sides. The two countries are attempting to help Washington and Tehran reach a lasting agreement.
Witkoff and Kushner Join Diplomatic Efforts
U.S. envoy Steve Witkoff and Jared Kushner were reportedly scheduled to meet Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani.
Their discussions were expected to focus on Iran’s nuclear program, regional security and the future of the Strait of Hormuz.
However, officials from Iran and Qatar indicated that direct high-level talks between U.S. and Iranian representatives would not take place.
Instead, negotiations were expected to continue indirectly through mediators and technical teams.
Trump Reportedly Favors Continued Diplomacy
U.S. officials held positive discussions with Gulf leaders on Tuesday, while technical negotiations continued to advance.
Trump has also received briefings on possible military options. However, reports suggest that he currently prefers to continue diplomatic efforts rather than restart military action.
The president may also allow negotiations to continue beyond the existing 60-day deadline, which is due to expire in August.
White House Seeks to Avoid Another Energy Shock
Deutsche Bank analysts said the White House appeared reluctant to resume military operations.
A renewed conflict could push energy prices higher ahead of the November midterm elections. Higher oil prices could also increase inflation and weaken economic activity.
The more diplomatic tone from Washington has therefore helped reduce some of the geopolitical risk premium in crude oil markets.
Brent Oil Returns Toward Pre-War Levels
Brent crude futures were trading near $72 per barrel.
The global benchmark has returned to around its pre-war level following the framework peace agreement signed by the United States and Iran in June.
Oil prices had previously climbed above $110 per barrel after the joint U.S.-Israeli assault began in late February.
The surge was driven largely by Iran’s effective closure of the Strait of Hormuz, one of the world’s most important energy shipping routes.
Strait of Hormuz Remains a Major Dispute
Despite progress in the wider negotiations, Washington and Tehran remain divided over control of the Strait of Hormuz.
The White House has said that the waterway is open to commercial shipping. However, Iran wants to retain some authority over vessels passing through the strait.
The two sides exchanged retaliatory strikes in the area late last month. Those attacks have since appeared to ease.
Iran Proposes Strait of Hormuz Transit Fees
Iran has also been working with Oman on a proposal to collect payments from ships using the Strait of Hormuz.
U.S. officials reportedly oppose the plan.
The issue could become a major obstacle in negotiations because the strait carries a significant share of global oil and liquefied natural gas supplies.
Nuclear Program and Sanctions Remain Unresolved
The talks must also address Iran’s nuclear activities and the possibility of sanctions relief.
A lasting agreement would likely require compromises on uranium enrichment, international inspections, economic restrictions and regional security.
For now, Trump’s comments suggest that diplomatic efforts are continuing. However, major disagreements remain before the two sides can finalize a broader peace and nuclear agreement.
