Iran Begins Reviewing U.S. War-Ending Proposal… Oil Prices Plunge, Stock Markets Rebound

(Seoul=News) Iran announced on the 6th (local time) that it is reviewing the proposal presented by the United States to end the war with Iran. The response is drawing attention as it came shortly after U.S. President Donald Trump threatened to resume airstrikes.

A senior Iranian government official said that day, "We are carefully examining the war-ending proposal put forward by the United States," hinting at the possibility of negotiations. However, he did not mention the specific timing of negotiations or whether the proposal would be accepted. President Trump had previously warned that he would resume military operations if Iran did not come to the negotiating table.

Nevertheless, military tensions continue. U.S. fighter jets attacked and disabled an Iranian-flagged oil tanker that day, while the Israeli military struck targets near Beirut, Lebanon. Even amid the hard-line standoff between the two sides, moves to seek a diplomatic exit are simultaneously underway.

When reports of possible war-ending negotiations emerged, international financial markets reacted immediately. International oil prices fell sharply that day, and major stock markets all turned to gains. The development is interpreted as bringing a sense of relief to markets that had been gripped by risk-aversion sentiment due to the escalating Middle East situation.

Meanwhile, as U.S. sanctions and maritime blockades against Iran take full effect, Iran's economy is reportedly under serious pressure. The Iranian government maintains its position that it "can endure the pain of sanctions," but observers point out that with the export channels for crude oil—its main export—virtually blocked, damage to the overall economy will be inevitable.

Experts analyzed that this economic pressure lies behind Iran's decision to begin reviewing the war-ending proposal. They assess that the Trump administration's military and economic pressure strategy is having a certain degree of effect in bringing Iran to the negotiating table.