Pakistan is working with China to restart stalled peace talks between the United States and Iran.
Pakistan is seeking to resume diplomatic negotiations between the U.S. and Iran, an effort reportedly backed by China. The news contributed to a drop in oil prices on Friday, with Brent crude futures falling nearly 4% to $96.78 per barrel. China is eager to see the talks resume because Iranian military actions in the Gulf and the closure of the Strait of Hormuz have impacted Chinese interests. The move comes as the Middle East faces escalating conflict. The administration recently completed 13 consecutive nights of strikes on Iran to protect commercial shipping routes. President Trump said he is considering a "massive attack" on Iran, noting that the country has not yet "received enough pain." He also stated that the U.S. will hold Iran responsible for further attacks by the Houthis in the Red Sea. While markets reacted to the news with a price dip, analysts suggest that geopolitical risks will keep energy markets tight and prices supported through the end of the year.