Oil gains amid Middle East risks; Japan, S.Korea stocks drop
Oil prices rose on Middle East risks, while Japanese and South Korean stocks fell. Gold rebounded towards $4,140.
Marco Rubio ordered Iran's UN delegation out of the US after talks stalled, Axios reported. The move showed deep distrust between the two countries.
The halt in dialogue and Trump's recent statements mean the possibility of conflict is still very present. Consequently, a geopolitical risk premium is expected to remain built into crude prices, the market most responsive to war headlines. The simultaneous Qatari mediation effort and Trump's assertion that the situation will resolve itself shortly result in two possible outcomes for oil: a political settlement would push prices down, while military engagement would provide price support. Any communication from the Qatari go-betweens or the US administration is likely to cause sharp movements in the crude market; safe-haven flows and broader risk sentiment could move in parallel. The information comes from anonymous sources cited by a single outlet, so independent confirmation or a reaction from Iran will be significant.
The expulsion unfolded against this backdrop of high stakes and fragile diplomacy.
The US demand that Iran's UN mission vacate New York shows the wide distance between the two countries, irrespective of Qatar's persistent compromise attempts and Trump's prediction of a swift conclusion.
Key facts:
Citing an American official and another knowledgeable party, Axios reported that Marco Rubio ordered Iran's UNGA mission out of the US on Monday after talks stalled. The outlet described the step as a rare diplomatic censure revealing deep suspicion between Washington and Tehran, since the push to end the war has stalled.
Among those ordered to leave was Iran's top diplomat, Abbas Araghchi, Rubio's counterpart. Qatar's go-betweens tried to orchestrate a diplomatic opening but got little traction, since neither side was ready to yield. The anonymous US official told Axios the group had overstayed its welcome and, with the General Assembly completed, it was appropriate for them to depart.
Per Axios, the White House was hopeful on Monday morning that the negotiations could advance during the day. By late afternoon it was evident the talks had reached an impasse. That night, acting on Rubio's orders, the US team at the UN directed the Iranian mission to depart New York instantly. The group took a few hours to head to the airport, getting on an early Tuesday flight from New York to Doha.
The other source corroborated the US expelled the group, yet highlighted that Araghchi was already meant to fly to Tehran on Monday night. Axios pointed out the Iranians were set to leave quickly in any case, so the timing and form of the US request are the key meaningful details.
Regional sources informed Axios that Qatar's mediators are continuing their discussions on the compromise framework with each side. On Wednesday, President Donald Trump was asked about reaching a deal with a government he has described as crazy. He replied that an attack is possible, that a choice must be made between going to war or striking a deal, and that the issue will conclude very shortly one way or another.
"Why don't you make like a tree and get out of here!"
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