Iranian rial recovers after US talks announced in Oman

Fars News Agency said the vessel was intercepted by the Islamic Revolutionary Guard Corps (IRGC) Navy and that six individuals were arrested. It did not specify the nationality of the tanker or those detained. Fars added that 100,000 liters of smuggled fuel were discovered during the inspection of the tanker.

The reported seizure follows an operation last month in which the IRGC detained two foreign tankers allegedly carrying over three million liters of smuggled diesel fuel. Those vessels, intercepted by the IRGC’s Second Naval District, were said to be systematically involved in fuel trafficking and were being moved to the port of Bushehr under judicial orders.

The IRGC regularly announces such actions, saying they are part of efforts to combat fuel smuggling in the Persian Gulf, a vital maritime route through which a significant share of global oil shipments passes.

Iran has previously seized tankers over alleged maritime violations or as retaliatory measures.

In April 2023, the Iranian Navy detained the Advantage Sweet, a Marshall Islands-flagged tanker, in the Gulf of Oman, citing a collision with an Iranian vessel.

In January, Iran seized the St. Nikolas, also Marshall Islands-flagged, in response to a US confiscation of Iranian oil the previous year.

Tensions between Iran and the United States have flared in recent years over a series of maritime incidents in the region, often involving oil shipments and sanctions enforcement.

As indirect talks with the US loom, an Iranian lawmaker said on Tuesday that no system can be toppled by force, warning against a perceived "surrender or war" ultimatum.

“Negotiations with the enemy will begin on Saturday. He (Trump) has said either surrender or war and bloodshed. The enemy is pinning its hopes on internal factors and its agents, otherwise no system has fallen or will fall with bombs and missiles,” lawmaker Salar Velayatmadar said in parliament.

The Kremlin said on Tuesday that Russia supports both direct and indirect talks between Iran and the US over Tehran's nuclear program, as they could lead to a de-escalation of tensions between the two sides.

In a call with reporters, Kremlin spokesman Dmitry Peskov again voiced Russia's support for a diplomatic and political settlement.

The rial, which hit a record low of 1,050,000 per US dollar last month, bounced back to about 960,000 rials on Tuesday amid growing anticipation of renewed diplomacy between Tehran and Washington.

Iranian government spokesperson Fatemeh Mohajerani confirmed on Tuesday that the talks will be held indirectly, mediated by Oman’s Foreign Minister Badr bin Hamad Al Busaidi. “In the negotiation, what is important for the people and the national interests will be our focus,” she said.

The Iranian delegation will be led by Foreign Minister Abbas Araghchi, while the US side will be represented by Donald Trump’s Mideast envoy, Steve Witkoff, according to Iranian and US media reports.

While US President Donald Trump has said the talks will be direct and at a senior level, Iranian state-affiliated media said otherwise.

Nournews, a site close to Iran’s Supreme National Security Council, described Trump’s comments as part of a “psychological operation” meant to shift blame and shape public perception.

The rial’s gains follow a period of sharp decline, triggered by the absence of negotiations, ongoing US sanctions and Trump's 'maximum pressure' policy on Iran, and escalating regional tensions fueled by Iran's allies.

Inflation in food and other essentials has soared, with local producers citing rising packaging and transport costs as major drivers. Over one third of Iranians now live below the poverty line in the midst of the worst economic crisis since the founding of the Islamic Republic in 1979.

Iran’s currency has halved in value since President Masoud Pezeshkian took office in August.

Policies pursued by US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu are pushing Iran towards developing nuclear weapons, according to Mohammadreza Sabbaghian, a member of the Iranian parliament.

Sabbaghian also warned Iranian diplomats to not be deceived by what he described as Trump's "Carrot and stick" approach, and that Trumps ear is to the mouth of the Israeli prime minister.

"Diplomats, decision-makers, remember: in foreign relations, a wise person isn't fooled twice by the same trick. Mr. Pezeshkian,don't be swayed by Trump's empty promises or intimidated by his threats; he's clearly listening to Netanyahu and the Zionists. The solution to our economic problems lies within our own country."

He added that, “Diplomats, understand this: the United States objects to our defense and missile capabilities... It opposes our nuclear technology and enrichment... Recognize that America's fundamental issue is with our system's independence and our unyielding leadership. Why fail to grasp this? Don't be fooled."