Gulf countries push for diplomatic exit between US and Iran and fear more destructive war
According to Bloomberg Television, Iran is moving forward with a plan to reopen Hormuz, but analysts are cautious: it is too early to talk about progress.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM BLOOMBERG TELEVISION · 2 MIN
Countries in the Persian Gulf are pressing for a diplomatic solution between the United States and Iran and fear that a new American and Israeli attack will trigger an even more destructive war in the region. The assessment was presented by journalist Onur Ant, from Bloomberg Television, who also acknowledged some diplomatic movement, but urged caution.
According to Ant, the Iranian foreign minister said the day before that progress had been made in implementing a two-day plan to reopen the Strait of Hormuz. He explained that the proposal is an accelerated version of a seven-day plan that Iran presented to the Americans in September and which was categorically rejected by President Donald Trump.
Therefore, in the journalist's assessment, it is too early to say that the movement will result in a breakthrough capable of avoiding a new round of fighting between the US and Iran. He said he would be very cautious in talking about a rupture at this time.
Frustration in the Gulf
Neighbors' reaction, according to Bloomberg Television, mixes concern and frustration with the turn of events. A senior adviser to the UAE president has made clear that Gulf countries feel they are being drawn into a war they have been trying to avoid for months through diplomatic talks.
The sentiment, according to Ant, was repeated at a conference over the weekend in Bahrain. At the time, Egypt's foreign minister stated that, if the war resumes, the second round of fighting could be much more destructive than the first, which took place between February and April.
The risk also comes from the Iranian side. According to the report, Iran's supreme leader, Mustafa Khamenei, ordered his commanders to expand the geographic limits of any retaliation and the list of American and Israeli targets, should the country be attacked again.
What does this mean for the market
The transcript does not contain figures on oil, stock markets or exchange rates. Still, the Strait of Hormuz is at the center of negotiations, and any progress or impasse surrounding its reopening tends to be closely monitored by investors attentive to geopolitical risk in the Middle East.
According to the video's description, Trump ruled out new attacks before Tuesday's US legislative elections. The cut, however, does not indicate what could happen after the vote.
For the region, the picture described by Ant is one of frustration: the Gulf countries do not participate in decisions, but they may bear the costs of a resumption of fighting if the US and Israel decide to attack Iran again.
Automatically translated from Portuguese.
