Iran War Day 209: Lack of Diplomatic Progress Roils Markets

The Iran War State of the Union: POLITICO reports that the White House is preparing a 90-day export ban on diesel. Photo by Brendan Smialowski-Pool/Getty Images Markets opened sharply down and oil prices up Thursday on inconclusive reports about diplomacy to end the Iraq War. Multiple outlets reported communication Wednesday between the Iranian and American delegations at the UN General Assembly in New York, during which Iran gave its conditions for the opening of the Strait of Hormuz, but the extent of the talks remained unclear. U.S. Special Envoy Steve Witkoff claimed on X that the discussions were conducted through mediators, as did the Iranian Ministry of Foreign Affairs spokesman Esmaeil Baghaei, but Middle East Eye reported a direct meeting between the American special envoy and Araghchi, citing a Gulf official and Iranian state media. Per Baghaei, the lifting of the naval blockade and sanctions remained preconditions for the reopening of the strait. Subscribe Today Get daily emails in your inbox Markets expressed pessimism about a diplomatic breakthrough. Dow Jones Industrial Average opened at 51,415.75, down nearly 100 points from the previous day’s close. Brent crude oil opened at $103 per barrel. AAA reported a national average price of $4.48 per gallon of regular gas and $6.51 per gallon of diesel. POLITICO reported that the Trump administration is preparing a 90-day export ban on diesel, which has hit record high prices in the past week, to ease short-term supply. Iran’s President Masoud Pezeshkian used his Wednesday speech at the UN to condemn American “terrorism,” showing pictures of the dead from the American bombing of a school in Minab and the late Ayatollah Ali Khamenei. Trump gave his speech at the assembly Tuesday, when he threatened to “annihilate” Iran.