Financial Wire

Market Chatter: US-Iran Deal May Take Six Months as Gulf Leaders Warn of Energy Risks

-- Gulf and European leaders see a US-Iran peace deal taking about six months, Bloomberg reported Thursday, citing officials from the regions familiar with the matter.

Leaders are pushing for an immediate reopening of the Strait of Hormuz to restore disrupted energy flows and stabilize global supply chains amid ongoing regional tensions, the report said.

They also warned that failure to reopen the waterway within weeks could trigger a broader food supply crisis.

Officials said energy prices are likely to climb further if the conflict drags on, according to the report.

Gulf countries continue to believe Iran is pursuing nuclear weapons capability, a concern unchanged despite recent US and Israeli military strikes, the report added, citing the sources.

They argue any agreement should prohibit uranium enrichment and restrict Iran's long-range missile capabilities as part of a broader security framework.

At the same time, Gulf leaders broadly oppose renewed military escalation and favor continued diplomatic engagement between the US and Iran to resolve the crisis, according to the report.

The conflict, which began with US and Israeli strikes in late February, has triggered retaliatory attacks by Iran across the region, targeting key energy infrastructure, the report said.

Oil prices have eased since the early April ceasefire but remain over 35% higher since the conflict began, with Brent trading above $99 per barrel on Thursday.

The Strait of Hormuz has remained largely shut, severely limiting exports of oil, liquefied natural gas, aluminum, and fertilizers from Gulf economies.

The US and Iran are considering extending the truce by two weeks, though key sticking points remain, including sanctions relief, nuclear limits, and broader regional conflicts, according to the report.

has reached out to the foreign ministries of Saudi Arabia, Kuwait, Bahrain, Oman, Qatar and the UAE for comments.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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