American Marconi Wireless News - Iran warns deal with US not yet close, despite some progress

World oil prices tumbled on renewed optimism about an agreement, after top US diplomat Marco Rubio suggested a deal could be reached within the day -- but Iran's foreign ministry spokesman responded: "No one can make such a claim."

Meanwhile, Pakistan's Prime Minister Shehbaz Sharif -- whose government is spearheading efforts to mediate a negotiated agreement between the United States and Iran -- met China's President Xi Jinping in Beijing.

US and Iranian forces have observed a ceasefire since April 8 while diplomats push for a negotiated settlement, although Iran has maintained controls on Gulf shipping through the Strait of Hormuz and the US Navy has sought to blockade Iran's ports.

"We thought we might have some news last night, maybe today," US Secretary of State Rubio told reporters during a visit to New Delhi, referring to hopes for a deal.

"We have what I think is a pretty solid thing on the table in terms of their ability to open up the straits, get the straits open," he said.

"We're either going to have a good agreement or we're going to have to deal with it another way. We'd prefer to have a good agreement," he said.

But in Tehran, foreign ministry spokesman Esmaeil Baqaei poured cold water on hopes for a quick final settlement.

- 'Certain fees' -

"It is correct to say that we have reached a conclusion on a large portion of the issues under discussion," he told a weekly news briefing.

"But to say that this means the signing of an agreement is imminent -- no one can make such a claim."

Baqaei stressed that Iran would continue to manage maritime traffic through the Strait of Hormuz by charging service fees -- arguing that this did not amount to Tehran "seeking to collect tolls".

"The services that are provided -- navigational services in addition to the measures necessary to protect the environment of the Strait of Hormuz, the Persian Gulf and the Sea of Oman -- require the collection of certain fees," he said.

Earlier, President Donald Trump had said that he had told his negotiators "not to rush into a deal, in that time is on our side", and warned that the US naval blockade would remain in place until a deal was reached.

A post on Trump's Truth Social read: "If I make a deal with Iran, it will be a good and proper one," adding that: "It isn't even fully negotiated yet."

Israel's Prime Minister Benjamin Netanyahu said Sunday that he and Trump had agreed that "any final agreement with Iran must eliminate the nuclear threat entirely."

- 'Lasting peace' -

Iranian officials have stressed that, despite the long-standing US demand for an end to its uranium enrichment, talks on the issue of Iran's contested nuclear programme have been deferred until after an initial agreement.

The war, which erupted after the United States and Israel attacked the Islamic republic on February 28 and saw Iran respond with missile and drone attacks across the region, drove energy prices higher.

Crude oil remains expensive by recent standards, but prices have see-sawed and Monday's mood of relative optimism caused prices to plunge by almost five percent.

The price of North Sea Brent crude and West Texas Intermediate slipped to $99.00 and $92.10 a barrel respectively.

On Saturday, leaders from Saudi Arabia, the United Arab Emirates, Qatar, Egypt, Jordan and Bahrain, as well as representatives from Turkey and Pakistan, joined a call with Trump to discuss the deal.

The focus of international efforts moved to Beijing on Monday, where Pakistan's Sharif and army chief Asim Munir, who visited Tehran on Saturday, met senior leaders including Xi and Premier Li Qiang.

Speaking to Chinese leaders, Sharif said "the world is passing through a critical moment", Pakistan's state-run PTV channel showed.

"Things are moving in the right direction. I would like to thank China's support to promote peace."

D.Moore--AMWN