Iran Reaches 'Understanding' With US on Nuclear Talks, Easing Tensions and Driving Down Oil Prices

Iran announced on the 17th (local time) that it had reached an "understanding" with the United States on the principles of nuclear negotiations.
Abbas Araghchi, Iran's foreign minister, said there had been "good progress" in talks with the United States in Geneva, Switzerland. However, he cautioned that the two sides were only at the stage of understanding each other's positions, making it difficult to reach a formal agreement in the near term.
According to the Financial Times (FT) and other foreign media, Araghchi stated, "We have ultimately reached a comprehensive understanding on certain principles that will guide future negotiations and help draft the wording of a potential agreement." He added, "We hope to reach an agreement soon and are prepared to devote sufficient time to achieve this."
Araghchi also noted, "However, once we begin drafting the text, it will become more difficult," predicting that conflicts could arise over detailed issues.
A US government official likewise said there were still many details to be discussed, but assessed that "there has been progress."
The official said, "Iran has agreed to come back within two weeks with detailed proposals that reconcile issues conflicting with our offer."
As signs emerged that tensions between the two countries were easing, Brent Crude Oil, the global benchmark, plunged more than 2%, falling to 67.18 dollars per barrel.
The United States and Iran held several rounds of indirect talks last year and at one point were optimistic about reaching a deal.
However, the negotiations collapsed after Israel attacked Iran for 12 days, just two days before the sixth round of US-Iran talks scheduled for June last year. At that time, the United States also supported Israel's airstrikes on Iranian nuclear facilities.
The latest round of talks came after President Donald Trump again warned Iran that it would have to face the "consequences" if it failed to reach an agreement.
Following the talks brokered by Oman, Araghchi did not present a specific timetable for future meetings, but said both sides would each prepare draft texts of a provisional agreement and then exchange them.
Earlier, President Trump had stepped up military pressure on Iran, including sending two aircraft carrier strike groups to waters near the country.


dympna@fnnews.com Song Kyung-jae Reporter