On Monday, US President Donald Trump said the war with Iran is "militarily effectively over." He made the remark at the White House, after meeting Qatar's Prime Minister, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani.
Trump also said the current situation will continue for now.
This means sanctions on Iran and the US naval blockade in the Strait of Hormuz will stay in place.
The Strait of Hormuz is a sea route in the Middle East.
For you, this matters because conflict in the Middle East can move oil prices.
Oil prices can affect fuel and transport costs, which many families feel.
Key points
- Trump says the Iran war is "militarily effectively over."
- Sanctions and the US naval blockade on Iran will continue for now.
- Trump says Qatar and Saudi Arabia want a peaceful solution.
- Oil prices fell sharply on Monday.
Did Trump rule out new strikes on Iran?
Not completely. Trump said Qatar and Saudi Arabia would rather see a peaceful solution.
But he added that the US is "ready to go anytime we want."
On Sunday, Trump told CNN that strikes were "highly unlikely" if talks move forward.
He said it depends on whether Iran signs a very strong agreement.
Why are the nuclear talks still difficult?
Qatar, which is a key mediator along with Pakistan, passed an Iranian proposal on its nuclear programme to the US on November 5.
Trump said Iran cannot have a nuclear weapon, and he called this point non-negotiable.
Trump also claimed that Iran's manufacturing capability is about 85 per cent gone.
Meanwhile, US Secretary of State Marco Rubio said on Sunday that the two sides were not close to a breakthrough.
He called some of Tehran's demands "simply unacceptable."
So what does this mean for oil and daily costs?
Oil prices dropped sharply on Monday. US crude fell 3.98 dollars to 86.85 dollars a barrel.
Brent fell 5.75 dollars to 92.57 dollars a barrel. A barrel is the standard unit used to price oil.
Graphic: News Anek, from the facts in this report
If you watch your monthly budget, this news is worth following.
Prices can rise or fall with every new development in the region.
For now, talks are continuing. No final agreement has been announced, and Trump said, "We'll see where it goes."
Sources
- Hindustan Times: Trump says Saudi Arabia and Qatar want peaceful solution to Iran war, but doesn’t rule out US strikes: ‘We’re ready to go’
- thedailyjagran.com: Iran War 'Militarily Effectively Over', But Hormuz Standoff To Continue, Trump Announces After Meeting Qatar PM
- Bastille Post: Trump says 'positive momentum' toward ending US-Iran conflict after talks with Qatari PM
