Iran’s President Masoud Pezeshkian said the Supreme Leader has given the government “certain powers” to pursue peace talks, hinting at a possible diplomatic opening amid fears of renewed war.

Regional diplomacy is intensifying, with Saudi, Turkish, Pakistani and Qatari officials meeting Iran, while Brent crude fell nearly 10% as investors saw a lower risk of fresh fighting.

Big gaps remain: Iran wants sanctions eased and assets released before reopening the Strait of Hormuz, while the US wants nuclear concessions; analysts say Khamenei’s mandate still has “clear red lines”.

AI generated TEHRAN – Iran President Masoud Pezeshkian said his government has been granted more authority by the country’s supreme leader to pursue peace talks, signalling a potential diplomatic opening as fears grow of renewed conflict with the US and Israel.

“We are striving to resolve the issue through dialogue and, in this regard, the Supreme Leader has also granted certain powers to the government,” the state-run Islamic Republic News Agency cited Pezeshkian as saying on Nov 2.

The Iranian president did not clarify the extent of the new authority bestowed by Mojtaba Khamenei or whether it signals a broader shift in the Islamic Republic’s red lines in indirect negotiations with the US.

Investors nonetheless took his remarks as a sign that a fresh round of fighting between Tehran and Washington could be averted through diplomacy.

Brent crude oil, the global benchmark, extended declines to nearly 10%, and was trading just below US$106 a barrel at 3pm in London.

Regional countries are stepping up diplomatic efforts to prevent a renewal of fighting between the US and Iran after months of relative calm.

Senior officials from Saudi Arabia, Turkey and Pakistan travelled to Tehran last week, while Qatari mediators held talks with Iran in Tehran and Doha over the weekend. Major differences remain between the warring sides.

Tehran wants a US naval blockade of its ports lifted, sanctions eased and frozen assets released before reopening the strategic Strait of Hormuz to maritime shipping. Washington is demanding concessions related to Iran’s nuclear programme.

“Given the sensitivity of the current situation, consultations and deliberations have become highly intensive,” Iran Foreign Minister Abbas Araghchi told IRNA during a visit to Turkmenistan.

“We have presented our terms and plan, and everything depends on Washington’s political rationality,” he said. “If they intend deception and military operations, they will face a response harsher and heavier than before.”For some, the differences are too wide for either the US or Iranian government to bridge without significant concessions.

“There is nothing new here. The Supreme Leader has given the government a narrow negotiating mandate, with clear red lines,” said Ali Vaez, a senior analyst and director of the Iran Project at the International Crisis Group.

“Tehran is willing to negotiate an end to the war, but it wants more than a pause before the next round of hostilities. It seeks a durable peace that restores its deterrence,” he said.

US President Donald Trump has repeatedly said he would resolve the Iran conflict one way or the other, occasionally threatening to resume strikes after the midterm elections.

Khamenei has ordered his top military commanders to prepare for renewed confrontation with the US and Israel and expand Tehran’s options for retaliation, even as his top diplomat signalled progress in diplomatic talks.

That has fuelled fears among Gulf Arab states that a better-prepared Iran could unleash an even more destructive war across the region, leaving them to pick up the pieces.

Axios reported earlier that Trump told Israeli Prime Minister Benjamin Netanyahu that he remains open to allowing more time for a diplomatic solution to the conflict. BLOOMBERG