Iran's foreign minister stated on Wednesday that it would only accept a "fair and comprehensive agreement" with the U.S. in its negotiations to end the Middle East war, as President Donald Trump noted "great progress"? in the process.

Iranian media reported that Abbas Araqchi, the Foreign Minister of Iran, said after meeting China's top diplomat Wang Yi in Beijing: "We will protect our legitimate rights and interests during negotiations." "We will only accept an agreement that is fair and comprehensive."

He didn't directly respond to Trump's earlier offer of a pause to the U.S. operation escorting ships through the Strait of Hormuz. This was made as an incentive for the two parties to reach an agreement.

Since the U.S.-Israeli airstrikes on Iran in February, the strait is virtually closed. This has led to a global energy shortage and the blocking of about 20% world oil supply.

Trump posted on Twitter that "we have mutually agreed" to pause Project Freedom for a period of time while he and the other party finalize and sign an agreement.

Brent crude oil futures dropped 1.2% to $108.60 per barrel following Trump's tweet, after falling 4% the day before. U.S. West Texas Intermediate futures eased by 1.2% to $101.06 a barrel after falling 3.9% in the previous session.

The White House didn't immediately respond to a request for comment about what progress was made or how long this pause would last.

The U.S. Department of State Marco Rubio, along with other senior officials in the administration, said on Tuesday that Iran cannot be allowed to control the traffic through this strait.

Iran has effectively closed off the Strait of Hormuz by threatening to use mines, drones missiles and fast attack craft. The United States responded by blocking Iranian ports and escorting commercial vessels through transit. On Monday, the U.S. Military announced that it had destroyed several small Iranian vessels as well as drones and cruise missiles.

A fragile ceasefire that was agreed on four weeks ago still holds.

TRUMP SAYS IRAQ WANTS PEACE

The war, which has spread from Iran to Lebanon and Gulf and has shook the global economy, has claimed thousands of lives. The head of the International Monetary Fund said on Tuesday that if the war ended immediately, the consequences would take between three and four months.

Trump told reporters at the Oval Office in Washington that Iran's military was reduced to "peashooters", and Tehran wanted peace despite its public sabre rattling.

He said that "great progress has been made towards a complete and final agreement with representatives of Iran" on his Truth Social platform.

As gas prices rise, the conflict also puts pressure on Trump's administration in advance of the crucial midterm elections that will take place in November.

Trump said that the U.S. and Israeli attacks were aimed at eliminating what he called the imminent threats of Iran. He cited its nuclear and missile programs, as well as its support for Hamas and Hezbollah.

Iran called the attacks a violation to its sovereignty, and stated that it has the right to use nuclear technology peacefully, including enrichment. It is a signatory to the Nuclear Non-Proliferation Treaty.

Diplomatic efforts have not yet yielded results. The U.S. government and Iranian officials held a round of face to face peace talks. However, attempts to arrange further meetings failed. Reporting by Bureaus; Writing by Raju Gopikrishnan, Editing by Lincoln Feast.

(source: Reuters)