Iranian foreign minister continues indirect talks with US = state media

Despite a rebuke from US President Donald Trump, Iran remains steadfast in its position to reopen the vital Strait of Hormuz only if conditions are met, while senior Iranian military officials have emphasized the country’s readiness to continue fighting.

Iran’s Islamic Revolutionary Guards Corps claimed on Sunday that it had captured a US autonomous submarine.

“Our conditions are clear. Progress towards opening the Strait of Hormuz depends on the fulfillment of these conditions, and we have no intention of withdrawing them,” Iranian Foreign Minister Abbas Araghchi said in a post on his Telegram channel translated by Google.

“During the talks with the mediators, these conditions were fully communicated, explained and detailed, and the mediators also conveyed them to the American side,” he said on the sidelines of the United Nations General Assembly in New York.

President Trump told reporters on Saturday that he rejected Iran’s latest proposed conditions for reopening the Strait of Hormuz, through which about a fifth of the world’s oil supplies passed before the war began. “They made an offer, but I rejected it.”

The Wall Street Journal, citing unnamed U.S. officials, said President Trump has told aides that he expects to resume bombing Iran after the November midterm elections.

Arraguchi had on Friday proposed reopening the strait and resuming nuclear negotiations with the United States within seven days if the Trump administration accepts the terms.

Araghchi said in his latest statement that mediators between the United States and Iran have not yet conveyed a formal response from President Trump to Tehran. “Only a negotiated solution can break this impasse,” he said.

Iranian Foreign Ministry spokesman Esmail Baghai said last week that Tehran’s conditions include an end to U.S. “acts of aggression,” an end to the naval blockade and economic warfare, and the release of Iranian assets.

Iranian military leaders continued to stress their readiness to continue the war that began with U.S. and Israeli airstrikes on the country on February 28.

Iran Student News Agency quoted Amir Khatami, the commander-in-chief of Iran’s armed forces, as saying, “The war is not over.” “We have won, but we must consolidate this victory, and our hard-hit aggressor adversaries must continue to prepare for a hard blow from our beloved Iranian soldiers.”

Meanwhile, the Revolutionary Guards Navy claimed on Sunday that it had captured an American underwater drone in the Strait of Hormuz.

Tasnim news agency cited information from the Revolutionary Guards and reported in a Telegram post that “Revolutionary Guards naval units successfully captured an advanced unmanned underwater vehicle (UUV) belonging to the US terrorist forces.”

The agency described the vehicle as a Remus 600 unmanned underwater vehicle, adding that it had been handed over to military experts for data recovery.

“The Revolutionary Guards Navy categorically declares that the Strait of Hormuz is closed (to unauthorized traffic),” it said.

U.S. Central Command did not immediately respond to CNBC’s emailed request for comment.

The war has severely restricted energy transport from the Middle East, causing oil prices to soar and raising concerns about accelerating global inflation.

However, oil prices recorded a sharp drop this week as Iran and the US held talks on the sidelines of the United Nations General Assembly.

West Texas Intermediate fell 2.3% to close at $92.41 per barrel. Brent, the international benchmark, fell 2.1% to settle at $104.32. U.S. crude oil ended the week 7.9% lower, while Brent crude oil was flat.

WTI is up nearly 61% year-to-date, while Brent crude is up more than 71% over the same period.