The ongoing peace talks between America and Iran in Pakistan’s capital Islamabad have completely failed. This diplomatic failure is likely to have a direct impact on global trade. On Sunday, US Vice President JD Vance officially confirmed that an agreement could not be reached between the two countries. The main root of the dispute is Iran’s nuclear program and control of the Strait of Hormuz. Immediately after this failure, the rhetoric between the two countries has intensified and Iran has imposed a trade embargo that has created a stir in the international market.
Recovery of 2 million dollars from each ship
After peace talks remained inconclusive, Iran has announced to tighten its grip on the Strait of Hormuz, one of the world’s most important oil and gas trading routes. Haji Babai, Deputy Speaker of the Iranian Parliament, has clearly claimed that the strait is now completely under Iran’s control. Under this, Iran has decided that now only 10 ships will be allowed to pass through this route every day.
The matter has not stopped at just limiting the numbers, Iran has also fixed a huge fee of 2 million dollars (about Rs 19 crore) on every commercial ship passing through here. The movement of less than a dozen ships and such huge fees means that the cost of freight transportation in the global market is going to increase exponentially.
Why did Islamabad talks fail?
There is a deep abyss of mistrust behind this entire diplomatic impasse. Iranian Parliament Speaker Mohammad Bagher Ghalibaf issued his first official statement after the failure of talks in Islamabad. He clarified that the American delegation completely failed to win the trust of the Iranian side.
According to Ghalibaf, Iran had participated in this conversation with full positive intentions and willingness. However, citing the bitter experiences of the last two wars, he said that in the current circumstances it has become very difficult for Iran to trust the other side (America). Due to this lack of trust, hopes of ceasefire and peace agreement were dashed.
Big threat to global supply chain
This unilateral decision of Iran has caused deep concern in the Arab countries and the global business community. Sultan Al Jaber, head of the United Arab Emirates (UAE) government oil company ADNOC, has completely rejected Iran’s claims. Expressing strong objection, he has said that Iran does not have a monopoly on the Hormuz route and it cannot close or control it as per its wish. Sultan Al Jaber warned the international community that the entire world would have to suffer the consequences of any obstruction in this important sea route.
He clarified that this step of Iran will not only severely disrupt the global supply chain of crude oil and gas, but will also create a deep crisis in the supply of essential food items and life-saving health services. The ADNOC chief warned that this decision of Iran could set a very dangerous example which the international community would never accept. The world economy is not in a position to absorb such a shock, hence it is extremely important to prevent such disruptions in the global interest.
Also read- After the US-Iran ceasefire, the condition of the world fell from the sky, like a date stuck, there was panic for crude oil!