Rubio says US will find 'another path' if Iran deal fails

The United States will have a good deal with Iran or deal with the country "in another way", Secretary of State Marco Rubio said on Monday (25), as Washington played down hopes of an imminent breakthrough in the three-month-old war.

Rubio told reporters in New Delhi that the US would give diplomacy every chance of success before exploring "alternatives", after US President Donald Trump said on Sunday (24) that he had instructed his representatives not to rush into any deal with Iran.

There was "something pretty solid on the table in terms of their ability to open the strait, get the strait opened, get into a very real, meaningful, time-bound negotiation on the nuclear issue, and hopefully we can get that done," Rubio said.

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A day earlier, Trump wrote on Truth Social that the U.S. blockade of Iranian ships in the Strait of Hormuz would "remain in full force until an agreement is reached, certified and signed."

He added: "Both sides must remain calm and do everything right."

There was no immediate response from the Iranian government. But Tasnim news agency, linked to Iran's Revolutionary Guards, said the US was still obstructing parts of a possible deal, including Tehran's demand for the release of frozen funds.

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Oil prices fell 6% on Monday, hitting two-week lows, as optimism grew that the United States and Iran were moving closer to a peace deal.

On Saturday (23), Trump raised expectations of an imminent agreement by stating that Washington and Tehran had "largely negotiated" a memorandum of understanding on a peace deal that would reopen the Strait of Hormuz.

Before the conflict, this important waterway transported one-fifth of global oil and liquefied natural gas shipments.

The two sides remain at odds on several difficult issues, including Iran's nuclear ambitions, Israel's war in Lebanon against the Iran-backed Hezbollah militia, and Tehran's demands for the lifting of sanctions and the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks.

Critical Points
A senior Trump administration official described what he said were the latest contours of the issues under negotiation. Speaking on condition of anonymity, the official said Iran had agreed "in principle" to open the Strait of Hormuz in exchange for the United States lifting the naval blockade and to dispose of Tehran's highly enriched uranium.

The US understood that Iran's Supreme Leader Ayatollah Mojtaba Khamenei had endorsed the general outline of the agreement, he added. There was no immediate confirmation from Iran or clarification on what an agreement "in principle" meant.

The American official said that Washington anticipated, first of all, the reopening of the strait and the lifting of the American naval blockade. Negotiating the details of nuclear measures would take longer.

The official refuted suggestions that Iran would not have agreed to part with its stockpile of enriched uranium.

"The question is how," said the official.

A second senior administration official said on Sunday that the proposed framework would give negotiators 60 days to reach a final agreement.

Iranian sources told Reuters that in future steps, "workable formulas" could be found to resolve the dispute over its stockpile of highly enriched uranium, including dilution of the material under the supervision of the UN nuclear agency.

Iran has long denied US and Israeli accusations that it is seeking to develop nuclear weapons and claims it has the right to enrich uranium for civilian purposes, even though the purity achieved far exceeds that needed for power generation.

Trump, whose popularity has been hit by the impact of the war on US energy prices, and who has faced congressional efforts to restrict his war powers, has repeatedly emphasized the possibility of a deal to end the conflict that began between the US and Israel on February 28.

A fragile ceasefire has been held since early April. The president countered criticism of his handling of the negotiations and his willingness to reach an agreement with Iran.

"If I make a deal with Iran, it will be a good and proper deal... So don't listen to the losers who criticize something they know nothing about," Trump posted on Sunday.

Any agreement that reinforces the current ceasefire, however fragile, will bring relief to markets but will not immediately resolve the global energy crisis, which has driven up the costs of fuel, fertilizer and food.

Joint US-Israeli bombings killed thousands of people in Iran before being suspended in early April.

Israel also killed thousands of people and forced hundreds of thousands from their homes in Lebanon, a country it invaded in pursuit of the militant group Hezbollah. Iranian attacks against Israel and neighboring Persian Gulf countries have caused dozens of deaths.

Why is the Strait of Hormuz so important to the world economy?

Source: CNN