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January 1, 1970

President Trump this week extended the US-Israeli cease-fire in the war against Iran with no end date. The US is seeking a long-term peace deal in the Middle East conflict. Trump had set a deadline for Wednesday to resume an air war on Iran if terms on a deal were not reached. But Iran declined to send anyone to the planned talks in Pakistan.
The two sides remain far apart on a number of issues. One of the major sticking points is Iran’s nuclear weapons program. The New York Times reported that Iran has offered to suspend uranium enrichment activities for up to five years. The US wants to push it to 20 years. The talks between the two nations now appear at a standstill.
Though bombs are no longer dropping, the US Navy has blocked all ship traffic in and out of Iran’s ports. And Iran continues a naval blockade of the Strait of Hormuz. That strait is a key water route for global trade. About 25% of the world’s seaborne oil moves through the strait. The strait’s blockade has caused chaos in world energy markets and driven up gas prices at pumps across the globe. That includes prices in the US.
Fatih Birol said Thursday the world is facing “the biggest energy security threat in history.” He's the head of the International Energy Agency (IEA). Birol told CNBC the Hormuz closure has caused the loss of around 13 million barrels per day of oil supply.
Also on Thursday, Trump ordered the US military to “shoot and kill” small boats that are choking the strait. Iranians in boats have been laying mines and firing on other vessels trying to sail through the strait. Trump said US minesweepers were working “at a tripled up level” to clear any mines from the waters. It remains unclear if these actions will have much effect on opening water traffic through the strait.
Reflect: What would shape your thinking when having to choose between continuing a conflict or trying to negotiate peace?
Photo of ships and boats in the Strait of Hormuz from Reuters.