Iran Officially Declares No Negotiations, Warns Third Parties Against Joining Conflict as Oil Prices Face Potential Turbulence

Deep News
03/20

Iran's Islamic Republic News Agency (IRNA) reported on Friday, March 20, that Ibrahim Rezaei, spokesperson for the Iranian Parliament's National Security and Foreign Policy Committee, clearly stated that Iran currently has no plans to engage in negotiations with the United States. He characterized recent rumors about a ceasefire or talks as deliberate disinformation spread by the U.S. to control energy prices.

This statement directly responds to recent market speculation about the possibility of diplomatic mediation, particularly against the backdrop of sharp oil price fluctuations due to escalating conflict. The official Iranian position demonstrates a refusal to compromise, further reducing the likelihood of easing tensions through negotiations in the short term.

During Friday's Asian trading session, U.S. crude oil prices trended lower, currently trading near $93.15 per barrel, down approximately 2.5% for the day, yet still significantly higher than pre-conflict levels.

Rezaei emphasized that the security situation at Iran's key oil export hub, Kharg Island, remains stable, and Iranian oil export activities continue normally. As the main port for Iranian crude oil shipments, handling about 90% of the country's crude exports, Kharg Island had been a focus of market concerns that attacks on Iranian energy facilities could disrupt exports. The latest official statement aims to stabilize market expectations and curb excessive panic-driven oil price increases.

In light of recent attacks, these remarks also indirectly demonstrate Iran's defensive capabilities and confidence in protecting its domestic energy infrastructure.

Rezaei claimed that Iran's recent military actions have achieved significant results, inflicting "more decisive" blows on the enemy, primarily referring to U.S.-Israeli forces. While he did not provide details on specific operations, this statement, combined with retaliatory strikes over recent weeks targeting Qatari LNG facilities, Saudi Red Sea ports, and UAE natural gas infrastructure, reflects Iran's belief that its counterattacks have effectively weakened the adversary's energy and military advantages, enhancing its own deterrence in the conflict.

Rezaei issued a stern warning: should any country, in any form, allow Iran's adversaries to use its territory or military bases, that country will be considered a direct participant in the conflict and become a target for Iranian strikes. This warning is directed at nations potentially providing logistical support or bases to the U.S. and Israel, covering Middle Eastern neighbors and potentially broader regions, aiming to prevent third-party involvement and escalation of the conflict.

Although G7 nations had previously committed to stabilizing the Strait of Hormuz, most adopted a cautious stance. Iran's statement further increases deterrence pressure on potential allies.

The U.S.-Israel conflict with Iran has persisted for nearly three weeks, with hostilities rapidly expanding from military targets to energy infrastructure. Iranian retaliatory actions have severely impacted Qatar's LNG production capacity and contributed to volatile high oil prices.

Former President Trump publicly warned Israel against further attacks on energy targets and refused to deploy additional ground troops, revealing apparent coordination fissures between the U.S. and Israel. The Iranian parliament's firm stance comes as oil prices retreat and diplomatic rumors intensify, indicating Tehran's unwillingness to back down. The conflict may be entering a more prolonged phase of attrition, with global energy markets and inflation expectations facing continued high uncertainty.

The latest statements from the Iranian parliamentary committee spokesperson overall present a combination of firmness and restraint: on one hand, firmly denying any possibility of negotiations and claiming decisive results from military actions; on the other, emphasizing the stability of key export facilities to calm oil markets.

The severe warning to third parties against providing bases or territory essentially draws a "red line," aiming to contain the internationalization of the conflict. At this stage, Iran's strategy appears to maintain strategic initiative through precise retaliation and diplomatic isolation, while avoiding a full-scale, uncontrolled energy war.

Markets should remain vigilant: if third parties maintain neutrality, the conflict may continue as high-intensity, low-level attrition; however, should base usage or new intervention occur, energy prices and geopolitical risks could sharply amplify.

At 10:20 Beijing Time, U.S. crude oil futures were reported at $93.10 per barrel.

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