Kashkari says longer Iran war raises inflation risks

Republican Senator Lindsey Graham said President Donald Trump should “finish the job” in Iran and resume military strikes if Tehran continues to be “provocative.”

Graham told the Financial Times that the United States needed to “open up the strait” and should do “whatever combination of events is necessary to start the flow” of ships.

“Between the blockade, which has been brilliantly executed, and letting Iran know that Kharg Island is in play, hopefully that will create some deterrence,” Graham said, referring to Iran’s oil export hub.

“If it doesn’t, (we need to) just stand up to Iran, don’t let them get away with blackmailing the world,” he added.

Iran’s central bank warned on Sunday that buying foreign currency at high prices could be risky after the rial fell to a record low on the open market, with one US dollar trading at 1.87 million rials.

“If expectations are adjusted, supply increases or the central bank makes targeted intervention, there is a possibility that prices will return and buyers at high rates will suffer losses,” the central bank said.

The rial also weakened to 2.23 million against the euro and 2.58 million against the British pound.

A northbound bulk carrier was attacked by multiple small craft 11 nautical miles west of Sirik, Iran, on Sunday, the United Kingdom Maritime Trade Operations said.

The ship’s master reported all crew were safe and no environmental impact had been reported, UKMTO said.

UKMTO advised vessels to transit with caution and report suspicious activity while authorities investigate.

Three-quarters of US registered voters said the United States is winning the war with Iran, while 26% said Iran was winning, according to the Harvard CAPS-Harris Poll.

The survey was conducted online in the United States from April 23-26 among 2,745 registered voters.

On Iran’s nuclear program, 65% said Iran was rebuilding its nuclear capability after US airstrikes, while 35% said it had lost that capability.

On the blockade, 63% said the United States should continue blockading Iranian ships if Tehran refused to uphold its end of a ceasefire, while 37% said it should not.

A majority also backed key conditions for any future Iran deal, with 79% saying it was essential for Iran to stop supporting Hezbollah and Hamas, 78% saying Iran must stop producing proxies and 72% saying Iran must limit ballistic missile production.

Iran’s latest peace proposal submitted to the United States via Pakistan aims to turn the ceasefire into an end to the war within 30 days through a three-stage plan, Al Jazeera reported, citing sources.

The proposal includes a nonaggression pledge, including from Israel, to prevent a return to war and end fighting across the Middle East, the report said.

In the first phase, the Strait of Hormuz would gradually reopen and the US blockade on Iranian ports would be lifted, while Tehran would take charge of dealing with sea mines, according to Al Jazeera.

The second phase would allow Iran to resume enrichment after a time limit at 3.6% under a “zero-storage principle,” while rejecting the dismantling of nuclear infrastructure or destruction of Iranian facilities.

The plan also calls for the United States and Israel to refrain from attacking Iran and its allies in exchange for Iran refraining from launching strikes, and includes the gradual release of frozen funds as part of sanctions relief.

In the third phase, Tehran proposed strategic dialogue with Arab neighbors and a regional security system covering the Middle East, the report said.