Light at the end of the tunnel

Arrival of Iranian and US delegations in Islamabad bring hope

The arrival in Islamabad, of an Iranian delegation headed by Foreign Minister Abbas Araghchi, and a US delegation headed jointly by presidential confidant Steve Witicoff and son-in-law Jared Kushner, was an indication that the two sides were closing in on a deal, but much will depend on the talks they will hold. Their meeting is uncertain, with Iran having said that no talks with Witcoff and Kushner were scheduled. While the pair are very close to US President Donald Trump, Witicoff having been part of the New York real-estate milieu from which Mr Trump comes, and \Mr Kushner being his son-in-law. Also, both being ardent Zionists, they would have been able to speak for Israel better than the previous delegation leader, Vice-President J.D. Vance. The reason for the change given by the White House is that the last talks did not end in an agreement. Iran has also held back the leader of the previous delegation, Parliament Speaker Bagher Ghalibaf. Mr Araghchi has also got an ‘out\ as the Islamabad visit is part of a three-leg tour.

Perhaps the most salutary reminder of what is at stake, for Pakistan as well as the oil-importing portion of the Global South, came with the weekly fix on \friday, which saw a rise in the price of petrol, as well as diesel. The ceasefire between the two countries has not restored normal traffic to the Strait of Hormuz. Economists might have to prepare a separate category for essentials, for the normal binary of elastic-inelastic does not seem to cover the demand- price relationship of oil. Oil is not merely highly inelastic, it seems unresponsive to price. The problem seems to be that it is not a good in itself, but an enabler. One can reduce one’s demand for sweets, say, but the factory worker must get to office, the grower must move his crop to market, and the student needs light at night.

There is not much more that the government can do, but it must help one combatant or the other realize that it is best to accept that it cannot impose its conditions on the other. Apparently, the USA and Iran have agreed to a moratorium on uranium enrichment, all that remains is an agreement on how long. The fate of already enriched uranium is also to be decided.