5 Updates on US-Iran Peace: Saudi Arabia and Israel Remain Stubborn
The latest developments regarding the peace memorandum of understanding between the United States (US) and Iran continue to unfold amid geopolitical uncertainty in the Middle East. The ceasefire narrative appears to be at a crossroads between hollow global optimism and the reality of a conflict still raging on the ground. Many parties consider the announcement of this political compromise too vague to serve as a guarantee of absolute peace for the world’s future. The dynamics of interests from key Gulf states are proving to trigger a new chapter in the international power struggle.
Saudi Arabia’s Stance
The Saudi Arabian government welcomed the initial agreement between the United States and Iran to end military operations and begin negotiating a permanent peace draft. Riyadh authorities view this diplomatic step as a positive signal to restore stability in the Gulf region, which has been devastated since the war broke out last February. Through an official release from the Ministry of Foreign Affairs, Saudi Arabia also expressed its highest appreciation for the hard work of Pakistan and Qatar, who acted as key mediators. Saudi authorities stressed the importance of restoring security and freedom of navigation in the Strait of Hormuz to normalcy, as it was before the conflict disrupted maritime logistics routes. “The Kingdom hopes that peace can be achieved in a way that enhances regional and global security through a lasting agreement that will consider the security interests of the region’s countries and adhere to the principle of non-intervention in the internal affairs of other states,” wrote the official statement from the Saudi Ministry of Foreign Affairs on platform X.
Strait of Hormuz
On the other hand, Tehran’s negotiating team reportedly succeeded in inserting an unexpected clause into the draft agreement moments before it was announced to the public. Iranian state media, Fars, reported that the country “added a rule regarding the imposition of maritime service fees for every foreign vessel passing through the Strait of Hormuz”. This unilateral move is considered a major diplomatic success for Iran to reassert its logistical influence over the world’s energy route. The text amendment explicitly reinforces the joint sovereignty of Iran and Oman over the strategic waterway. “In the final moments of negotiations, the text of the memorandum of understanding was amended to clearly and explicitly emphasise the issue of Iran-Oman sovereignty over the Strait of Hormuz. The use of the term ‘maritime services’ means that the United States has accepted that fees will be paid to Iran,” wrote the Fars report quoting an internal source.
Israel’s Stubborn Stance
The peace plan initiated by the White House appears to have hit a thick wall due to strong rejection from within the government of its close ally, Israel. Israeli Defence Minister Israel Katz asserted that the Tel Aviv military has absolutely no intention of withdrawing troops from the occupied territories they have controlled during the war. Katz stated that defence forces will maintain their military presence in the security zones of Syria, the Gaza Strip, and Southern Lebanon for an indefinite period. This hardline stance is taken to protect Israeli civilian communities from armed militia threats along the borders. “Prime Minister Benjamin Netanyahu and I are pursuing a clear policy where the military will remain in the security zones in Lebanon, Syria, and Gaza for an indefinite period to protect Israel’s borders and communities from jihadist elements there. We oppose the withdrawal of soldiers from Lebanon—regardless of all current and future pressures,” Katz stressed in his official release.
Instant Global Stock Market Response
Despite being shrouded in political tension, the official confirmation of the peace agreement draft immediately triggered extraordinary euphoria on various world financial trading floors. Stock markets in the Asia-Pacific region reportedly surged sharply, with Japan’s Nikkei 225 index rocketing 5.5% while South Korea’s Kospi index soared 5.7%. The opposite occurred for energy commodities, where Brent crude oil prices reportedly plunged 4.5% to below US$83.40 per barrel. The drop in world oil prices provided fresh air for global central banks, which have been plagued by fears of macro energy inflation over the past few months. “Ships of the World, start your engines. Let the oil flow!” wrote US President Donald Trump on his Truth Social account moments after ordering the lifting of the naval blockade on Iran’s logistics ports.
Fate of Tens of Thousands of Seafarers
Behind the market optimism, humanitarian activists and international seafarer associations greeted the agreement with far greater caution. The closure of the Strait of Hormuz for nearly four months has left at least 20,000 commercial ship crew members from various countries stranded in dire conditions in Gulf waters. The International Maritime Organisation (IMO) stated it will immediately draft a mass evacuation plan for the seafarers trapped since the war erupted on 28 February. However, the process of restoring navigation routes to normal levels is predicted to take months due to the threat of naval mines planted by the Iranian military during the conflict. “Open does not mean like flipping a switch; it is a convergence of assessment by shipowners, charterers, insurers, captains, and crew that a voyage is acceptable. That takes time and evidence: consistent peace where needed, clear and credible threat reduction, reliable communication, and several other factors,” the IMO stated.