San Francisco Frontiers - Rubio in Bahrain as US-Iran diplomacy ramps up

With diplomacy in full swing, Brent crude fell to its lowest price since the start of the war in February, which has crippled global oil supplies flowing from the crude-rich Middle East.

President Donald Trump met with NATO chief Mark Rutte at the White House on Wednesday and said the United States was "doing great" in negotiations with Iran.

Trump also asked Congress for nearly $88 billion in supplemental funding, mostly to cover the spiralling cost of the war, just a day after Congress called on him to end the conflict unless lawmakers explicitly authorise military action.

Rubio is on a regional tour to reassure the Gulf states, which were targeted by Tehran's missiles and drones during the conflict and saw their crucial oil and gas shipments effectively cut off by an Iranian blockade of the Strait of Hormuz.

Tehran has emerged emboldened from the war, vowing not to relinquish control of the vital waterway and going so far as to call its initial deal with Washington to stop the fighting "a declaration of America's defeat".

Iran slammed NATO on Thursday after Rutte noted its support for the United States, with foreign ministry spokesman Esmaeil Baqaei accusing the transatlantic bloc of "complicity" in the "unlawful war".

During a visit to Kuwait City, Rubio said Washington would be on the same page as Gulf states as it wrangles with Iran over a permanent settlement to the conflict.

"We're going to be completely aligned with our partners in the Gulf," he said, adding that the United States would "engage them on conversations about every decision that's made with regards to this negotiation."

Rubio is due to attend a Gulf Cooperation Council meeting in Bahrain on Thursday after sitting down with the leaders of Kuwait and the United Arab Emirates on Wednesday.

The initial US-Iran deal, which sets out a 60-day negotiating process aimed at reaching a long-term agreement, failed to address Gulf nations' long-standing concerns about Iran's missile program and regional proxies.

But Rubio insisted Washington was "not going to do anything that undermines the security of our allies".

- At odds on Hormuz -

Tehran, however, has already portrayed the deal as a victory.

Its top negotiator Mohammad Bagher Ghalibaf said on Wednesday that the agreement, reached with the help of Pakistani mediation, was "the result of the resistance and authority of the brave Iranian nation".

"That is why the Islamabad Memorandum of Understanding became a declaration of America's defeat," he said.

Rubio and Pakistan said technical talks between the United States and Iran were expected to resume in the coming days following a first round in Switzerland.

Rubio also insisted on Wednesday that the United States was committed to preserving the pre-war status quo of toll-free navigation in the Strait of Hormuz, which carries a substantial proportion of global oil and gas shipments.

"I know of no country on the planet that supports tolling or fees for the use of the strait," he said in Kuwait.

In Washington, Trump said imposing any fees on shipping would be "unacceptable".

Iran, however, has repeatedly said it intends to retain control over the strait, along with Oman, and charge what it calls maritime service fees for crossing it.

Qatar's prime minister, meanwhile, travelled to Oman to initiate talks on the strait between the Gulf states, Iraq and Iran, a diplomat told AFP.

The diplomat said Gulf countries would push for no-charge freedom of navigation, while Iran was expected to ask for an environmental and security service fee.

Speaking to AFP on condition of anonymity, another diplomat said separate talks on reconciliation between Gulf countries and Iran were expected to be held in Saudi Arabia, though they did not specify a date.

- Fighting in Lebanon -

Iran's Ghalibaf reiterated Wednesday that peace in Lebanon, which was drawn into the war when Tehran-backed Hezbollah launched attacks on Israel, was a fundamental pillar of reaching a definitive agreement with the United States.

"For us, the ceasefire in Lebanon has been and is as important as the ceasefire in Iran," he said.

The violence in Lebanon has ebbed in recent days but Hezbollah accused Israel of a "blatant" truce violation on Wednesday after an Israeli drone strike on a vehicle killed two people in southern Lebanon.

The Israeli military said it targeted "two armed Hezbollah terrorists" and vowed to "continue to operate to remove immediate threats."

Under US pressure, Lebanese officials began direct talks in April with Israel in Washington, with Lebanese authorities seeking to separate the negotiations from the US-Iran deal.

Q.Nelson--SFF