US' Blinken considering 'next steps' against Iran, seen delaying JCPOA talks

Quantum Commodity Intelligence - Tensions between the US and Iran ratcheted up several notches last week, making the prospect of a quick resolution in the stand-off between the two countries less likely as Iran's new president is sworn in this week.

The renewed spat started last Wednesday when Iran's supreme leader, Ayatollah Ali Khamenei, called the US "stubborn" over stalled nuclear talks, culminating in Iran being blamed for Thursday's attack on an oil tanker off the coast of Oman.

An attack on the tanker killed two crew members in the Arabian Sea, with fingers firmly pointing at Iran.

"Upon review of the available information, we are confident that Iran conducted this attack, which killed two innocent people, using one-way explosive UAVs, a lethal capability it is increasingly employing throughout the region," said US Secretary of State Antony Blinken in a statement.

The deterioration in relations comes as the Supreme Leader's hardline protege, President-elect Ebrahim Raisi, is poised to be sworn in this week as the head of the country's civilian government.

Raisi has said he wants to return to the 2015 nuclear deal, which saw Iran limit its enrichment of uranium in exchange for the lifting of economic sanctions, while Khamenei has seemingly called for a more adversarial approach in his remarks.

The shadow of Iranian sanctions being lifted has hung over the market since April, including multiple rounds of talks in Vienna generating a number of headlines saying a deal is imminent.

Iran has even made a number of bold claims that a deal was tantalisingly close, or on at least two occasions claimed that sanctions were set to be lifted, sparking sharp price movements in oil markets.

Secretary Blinken had already warned last week that the negotiating process with Iran to revive a 2015 nuclear deal could not go on indefinitely and that the ball is in Tehran's court.

However, the drone attack on the oil tanker makes any further progress on the Joint Comprehensive Plan of Action (JCPOA) extremely tricky.

"There is no justification for this attack, which follows a pattern of attacks and other belligerent behaviour," Secretary Blinken said further on Sunday.

"We are working with our partners to consider our next steps and consulting with governments inside the region and beyond on an appropriate response, which will be forthcoming."