Did Qatar's mediation work? The US and Iran are allegedly considering a new mediation plan, and Tehran responds “now the ball is on America's side”

The Zhitong Finance App learned that, according to an informed diplomat, Iran and the US are reviewing the latest plan proposed by the mediator to bridge differences and avoid a new round of all-out war.

The diplomat, who requested anonymity due to sensitive topics, said that Qatar's mediating representative flew to Tehran on Monday to hold further talks with Iranian officials, and returned late that night. The diplomat said that the talks held in Iran's capital had a positive atmosphere.

Speaker of the Iranian Parliament and senior representative for negotiations with the US Mohammed Bahr Ghalibaf told Iran's Fars News Agency that Iran has “made a strong and rational response” to the US. He added: “Now that the ball is on America's side, it is up to the US to avoid war.” At the same time, Ghalibaf reiterated that Iran is ready to respond violently to any attack by the US and Israel.

The latest diplomatic effort comes after weeks of escalating tension — Iran has stepped up its crackdown on ships around the Strait of Hormuz, while US President Donald Trump has hinted that after Tuesday's midterm elections (the Republican Party is expected to lose a large number of seats in Congress to the Democratic Party), he may order a new round of bombing of the Islamic Republic of Iran.

Israeli Prime Minister Benjamin Netanyahu has repeatedly emphasized Iran's need for “regime change” in recent weeks. There were reports last Sunday that he was pressuring Trump to attack Iran immediately after the vote was over.

According to several US media reports, the US side carried out an attack on Iran's Qeshm Island targets located within the strait during the night.

Related reports quoted US officials, who did not wish to be named, as saying that these were limited military operations aimed at ensuring the safe passage of ships through waterways; at least one of these actions was in response to the Islamic Revolutionary Guard Corps of Iran firing on an American fighter plane.

The US side has yet to publicly announce these attacks.

Although oil prices have soared over the past month due to heightened tension — further damaging Trump's political reputation among the American public — oil prices fell by about 10% on Monday due to signs that the White House was willing to allow more time for a diplomatic settlement.

As of press release on Tuesday, Brent crude was up about 1% to $105.70 a barrel, but is still far below last week's closing price of nearly $118.

In his closing statement before the midterm elections, Trump told reporters: “They want to reach an agreement; this is possible.” He added that the drop in oil prices was due to “the fact that things seem to be progressing very smoothly”.

When a reporter asked him loudly if the military strike would resume after the election, Trump responded by saying, “No.”

Earlier on Monday, Iranian President Masood Pezzahizyan said that Supreme Leader Mujtaba Khamenei had granted his government more powers to advance peace negotiations.

Iran's official Islamic Republic news agency quoted Pezzahizyan as saying, “We are trying to resolve the issue through dialogue. The Supreme Leader has also granted certain powers to the government in this regard.”

The Iranian president did not explain the scope of the new powers devolved by Khamenei, nor did he indicate whether this meant a greater shift in the Islamic Republic's strategy.

Trump has said many times that he will resolve the Iranian conflict by “reaching an agreement” or “resuming large-scale attacks” in the short term. The war began in late February, when the US and Israel began bombing Iranian targets and assassinated a number of senior officials, including former Supreme Leader Ali Khamenei, during the attack.

US officials initially said the war would last no longer than four to six weeks, but Iran's continued resistance made Trump even more depressed. The war caused chaos in the Gulf region, including counterattacks against US allies such as the United Arab Emirates, Saudi Arabia, and Qatar. By attacking ships, Iran once actually blocked the Strait of Hormuz and boosted the prices of oil and liquefied natural gas.

Rising fuel costs — US diesel hit a record and the average price of gasoline topping $4 per gallon — prompted Americans to turn their opposition to the conflict.

After the cease-fire in early April, there were still occasional exchanges of fire between the two sides, but the intensity was far lower than in the first phase of the war. In June, the two sides reached a so-called “Memorandum of Understanding” aimed at leading to formal peace, but the document broke down within about two weeks.

Following his statement on Monday, Trump wrote on social media: “Oil prices fell like a cliff, falling nearly $10 per barrel, a record because the market believes the US and Iran will not go to war.”

Trump's Vice President JD Vance also echoed this more dovish argument on Monday.

He told reporters: “We have had many good conversations with Iran. The President and I are both quite optimistic about the prospects for a negotiated settlement. Of course, Iranians' behavior has always been elusive.”

It appears that major differences between the warring parties remain. Tehran demands that the US lift the maritime blockade against Iranian ports, promise to ease sanctions and unfreeze frozen assets; Washington demands that Iran make concessions on its nuclear program.

Iranian Foreign Minister Abbas Alagzi said during his visit to Turkmenistan: “Consultations and deliberations have been highly intensive. We have put forward our own conditions and plans; everything depends on Washington's political rationality. If they intend to deceive and use force, they will face a fiercer and heavier response than ever before.”

Ali Waez, head of the Iran Program at the International Crisis Group, pointed out that the key to Iran's strategy is to reach an agreement that will ensure that the US and Israel will not launch attacks in the future.

He said, “Tehran is willing to negotiate an end to the war, but what it wants is more than a suspension until the next round of hostilities. It is seeking a lasting peace to restore its deterrent power.”

Khamenei has ordered his senior military commanders to prepare for a restart of confrontation with the US and Israel, and expand Tehran's options for retaliation. This makes the Gulf Arab countries worried: once a more prepared Iran takes action, it may launch a more destructive war within the region, and the Gulf countries will eventually bear the impact.