Iran on Wednesday said a return to war with the United States was unlikely, as growing hopes for a peace deal that would reopen the crucial Strait of Hormuz trade route sent oil prices tumbling.

With fighting paused since an April 8 ceasefire, negotiations to bring an end to the conflict and resume trade through the blockaded waterway have stalled, leaving the global economy shaken by the tumult.

“The possibility of war is low because of the enemy’s weakness, the armed forces are lying in wait with full magazines,” said senior Iranian Revolutionary Guards official Mohammad Akbarzadeh.

The Middle East war erupted in late February with US-Israeli strikes on Iran, spreading swiftly across multiple fronts and engulfing the region.

But hopes of an imminent deal to avoid further hostilities sent benchmark oil contracts falling more than five per cent on Wednesday.

Adding to optimism was an Iranian state TV report that said Washington had committed in a draft framework to lifting its naval blockade on Iran, as well as restoring traffic in the Strait of Hormuz and withdrawing American forces from the Gulf region.

The report cited what it described as an outline of a potential memorandum of understanding, but the White House swiftly blasted it as “a complete fabrication”.

“Nobody should believe what Iranian state media is putting out,” the White House said on X.

A day earlier Iran accused the US of breaching the ceasefire, and warned it was prepared to retaliate following the most serious strikes since the truce took effect.

The US military said it launched “self-defence strikes” targeting Iranian missile sites and mine-laying boats overnight Monday to Tuesday.

Akbarzadeh warned that Iran’s military would turn the area along its coastline “into a graveyard for aggressors”, in quotes carried by the Tasnim News Agency.

Tehran’s intelligence ministry, meanwhile, said the US and Israel were still seeking to overthrow the Islamic Republic and partition Iran, citing evidence of efforts to foment division and carry out sabotage missions.

‘Will there be missiles?’

Iran and the US have been engaged in a war of words for weeks as they try to negotiate a deal, with mediation efforts led by Pakistan.

Neither side appears ready to compromise on the key sticking points, which include the Strait of Hormuz and Iran’s nuclear programme.

On Wednesday, the Revolutionary Guards’ navy insisted that only ships “willing to abide by Iranian order” would be allowed to pass through the waterway.

US Secretary of State Marco Rubio had said on Tuesday that a peace deal remained within reach, but that the Strait of Hormuz would be reopened “one way or the other”.

In a further step towards normalcy for Iranians, authorities partially restored access to the global internet on Tuesday, after a three-month shutdown.

“I do feel better now because I finally can use my favourite applications,” said Hana, a 20-year-old student in Tehran who gave only her first name.

“At the same time, I have this concern that war might resume any minute and just cut me off again from my friends.”

Amir, a 27-year-old software developer in the Iranian capital, also said he feared renewed fighting.

“I feel like nothing is certain yet, even though the ceasefire is still ongoing and there is news of a possible agreement. But the daily question is, will there be missile strikes tonight?”

In a statement marking the start of the Eid al-Azha holiday, Tehran’s supreme leader Ayatollah Mojtaba Khamenei said the US was losing its influence in the Middle East and warned countries to stop hosting bases from which the US could launch attacks.

Dozens dead in Lebanon

On the Lebanon front of the war, Israel launched broad strikes on the country including near the city of Tyre on Wednesday,

In southern Lebanon, Israel carried out strikes on Tuesday that Beirut’s health ministry said killed 31 people, including at least four children.

An AFP correspondent at one strike site near the city of Tyre saw rescue workers removing debris on Wednesday and carrying a white body bag from the rubble, which was strewn with household items like rugs and cushions.

Iran has demanded that any peace accord apply to Lebanon, where an April 17 truce has failed to stop fighting that began when militant group Hezbollah attacked Israel in early March.

Israeli Prime Minister Benjamin Netanyahu on Monday vowed to “crush” Hezbollah, and an Israeli military official told AFP the following day that the country’s forces were expanding their ground operations deeper inside Lebanon.

Hezbollah said its fighters clashed with Israeli forces “at point-blank range” on Wednesday in a strategically significant town north of the Litani River, just beyond an Israeli-declared “yellow line” in south Lebanon where its troops have been operating.

The White House on Wednesday blasted an Iranian state television report about a framework deal with the United States to end the Middle East war as a “complete fabrication.”

The Iranian report cited a draft outline of a memorandum of understanding (MoU) that it said included a US commitment to lift the naval blockade on Iran and withdraw its forces from the Gulf region.

“This report from Iranian controlled media is not true and the MOU they ‘released’ is a complete fabrication. Nobody should believe what Iranian state media is putting out. FACTS MATTER,” the White House said on X as it lashed out at US media for reporting the Iranian claims.

Draft deal eyes Hormuz reopening, troop pullback

Earlier, Iranian state television said a draft framework deal with the United States included a commitment to lift the naval blockade on Iran, restore traffic through the Strait of Hormuz and the US to withdraw its forces from the Gulf region.

Tehran and Washington have in recent days been swapping proposals to end the war, which broke out on February 28 and engulfed the Middle East, while a fragile ceasefire has been in place since April 8.

The report cited what it described as a draft outline of a potential memorandum of understanding, while noting that the text was “still not finalised”.

Iran has since kept a tight control over the strategic Strait of Hormuz, a vital global energy conduit, while the US has imposed a naval blockade on Iranian ports and coasts since April 13.

 “The United States has committed itself to lifting Iran’s naval blockade and to cease harassing ships passing to or from the Islamic Republic of Iran,” the state TV report said.

In return Iran would allow commercial shipping through the Strait of Hormuz to resume as it had before the war within one month, according to the draft.

The draft says Iran would continue to manage shipping lanes, inspect vessels, and impose service fees on ships — measures which have only been imposed since the war.

Iran’s commitments would not apply to military vessels, and Tehran had not agreed “to unconditionally reopen the strait,” it added.

On the withdrawal of US troops from the region, the draft said Washington had given “a commitment to the Islamic Republic of Iran regarding this issue”.

It added that it remained unclear whether the commitment referred only to forces deployed before and during the war, or if it also included existing US military bases in the Gulf.

Following agreement on the framework, Tehran and Washington would enter a 60-day negotiation period, the draft said, without specifying which issues would be discussed.

 “If negotiations reach a final agreement during the 60-day period, this agreement is expected to be approved by a binding resolution of the United Nations Security Council,” it added.

Iranian state television said on Wednesday a draft framework deal with the United States included a commitment to lift the naval blockade on Iran, restore traffic through the Strait of Hormuz and the US to withdraw its forces from the Gulf region.

Tehran and Washington have in recent days been swapping proposals to end the war, which broke out on February 28 and engulfed the Middle East, while a fragile ceasefire has been in place since April 8.

The report cited what it described as a draft outline of a potential memorandum of understanding, while noting that the text was “still not finalised”.

Iran has since kept a tight control over the strategic Strait of Hormuz, a vital global energy conduit, while the US has imposed a naval blockade on Iranian ports and coasts since April 13.

“The United States has committed itself to lifting Iran’s naval blockade and to cease harassing ships passing to or from the Islamic Republic of Iran,” the state TV report said.

In return Iran would allow commercial shipping through the Strait of Hormuz to resume as it had before the war within one month, according to the draft.

The draft says Iran would continue to manage shipping lanes, inspect vessels, and impose service fees on ships — measures which have only been imposed since the war.

Iran’s commitments would not apply to military vessels, and Tehran had not agreed “to unconditionally reopen the strait,” it added.

On the withdrawal of US troops from the region, the draft said Washington had given “a commitment to the Islamic Republic of Iran regarding this issue”.

It added that it remained unclear whether the commitment referred only to forces deployed before and during the war, or if it also included existing US military bases in the Gulf.

Following agreement on the framework, Tehran and Washington would enter a 60-day negotiation period, the draft said, without specifying which issues would be discussed.

“If negotiations reach a final agreement during the 60-day period, this agreement is expected to be approved by a binding resolution of the United Nations Security Council,” it added.

Iranian authorities partially restored internet connectivity on Tuesday after an almost three-month shutdown imposed against the backdrop of the war against Israel and the US, said a monitor, a senior official and sources inside the country.

The shutdown left Iranians largely cut off from international networks, with only a domestic intranet working for daily tasks like shopping, ride-hailing and education.

“Live metrics show a partial restoration to internet connectivity in Iran on day 88,” of the shutdown, monitor Netblocks said on X, saying it was “unclear” if this meant a permanent end to the “longest nationwide internet shutdown in modern history”.

Vice President Mohammad Reza Aref said in a post on X that the “first step toward free and regulated access to cyberspace has been taken,” adding that the demands of Iranians “will be fulfilled.”

State news agency IRNA and Fars News Agency said “full international internet connectivity has been restored” for users of fixed broadband services, but this had not been confirmed by internet monitor NetBlocks.

Witnesses inside Iran also told AFP that mobile internet remains cut but home internet with Wi-Fi had been restored, even though VPNs were still needed to access some social media.

“A few minutes ago I could open international websites using my home internet provider,” said a 22-year-old woman from the western city of Kermanshah, asking not to be named.

A user in Tehran said the internet service for his company in Tehran has been restored but “mobile connection remained the same” without any access. Others reported that general access remained extremely patchy.

‘Long way to go’

The shutdown imposed when war erupted on February 28 followed a similar blackout imposed from January 8 as the country was rocked by mass anti-government protests.

Activists said that the January closure was aimed at masking the scale of a crackdown on the protests, which left thousands dead according to rights groups, as well as preventing more demonstrations.

Doug Madory, head of internet analysis at US network monitoring firm Kentik, said the partial restoration needed to be kept “in perspective”.

“Iran has a long way to go to get back to pre-Jan-8 levels of traffic volumes,” he wrote on X.

The shutdown had also caused considerable debate inside Iran with the administration of President Masoud Pezeshkian — regarded as a more moderate figure — impatient to end a measure which was also hugely damaging for the economy.

However Pezeshkian by no means has the final say on such issues.

Yaghoub Rezazadeh, member of Iran’s national security commission at the parliament, told the Hamshahri daily on Monday that the final decision on such issues “rests with the Supreme National Security Council” under hardliner Mohammad Bagher Zolghadr.

Iran’s judiciary earlier on Tuesday suspended a fledging presidential body that had ordered the restoration of the internet.

The Special Headquarters for Organising and Governing the Country’s Cyberspace was formed on May 12 by Pezeshkian.

The body had on Monday reached a decision to “restore the internet” in Iran, according to government spokeswoman Fatemeh Mohajerani, after local media reported that Pezeshkian had decreed the measure.

Supreme leader Mojtaba Khamenei, who has yet to appear in public since his father and predecessor Ali Khamenei was killed at the start of the war, meanwhile is in theory the country’s number one figure.

Some Iranians expressed glee on social media over the restoration of a degree of connectivity.

“YouTube without a VPN!!! Oh my God, am I dreaming?” wrote one on X.

“Hello my dear Twitter,” said another, using the former name for X.

US President Donald Trump is set to hold a rare cabinet meeting at the Camp David presidential retreat on Wednesday as Iran talks near a critical point, a White House official told AFP.

The choice of the secluded retreat in the Maryland mountains, which Trump hardly ever visits, in a break with previous presidents, reflects the sensitive nature of discussions.

The New York Post reported that Iran was set to dominate the meeting, which was expected to be attended by all cabinet members. The economy was also on the agenda, it said.

Trump said on Saturday that a deal with Tehran to end the Middle East war was close but negotiations are still tense, with the US leader warning that strikes on Iran could resume.

Camp David has been the scene of major US-led diplomatic developments in the past, including the 1978 accords between Israel and Egypt under President Jimmy Carter and a failed 2000 Israeli-Palestinian summit under Bill Clinton.

Trump has however been an infrequent visitor.

It will be only the second time that Trump has gone to Camp David in his second term. The first was just days before the United States launched strikes on Iran’s nuclear program in June 2025.

During his first term Trump said he had cancelled a planned summit with Taliban leaders at the retreat following an attack on US forces.

The United States, India, Australia and Japan announced new maritime and critical minerals cooperation on Tuesday, reviving a forum viewed suspiciously by China following questions over the US commitment and disagreement on Iran.

US Secretary of State Marco Rubio took part in the meeting in New Delhi, 10 days after President Donald Trump paid a friendly state visit to China and spoke glowingly of the two powers working together as a “G2” — a concept that the US partners, which view Beijing’s rise warily, fear could shut them out.

Meeting his counterparts in the Indian capital, Rubio said the Quad comprised countries “who share strong values — strong, vibrant democracies” and have “many aligned interests”.

The Quad said in a joint statement members would together mobilise $20 billion in government and private money to strengthen critical mineral supply chains, including by identifying projects in the four countries. It was unclear if that would be entirely new funding.

Critical minerals mark a rare area in which the Trump administration has turned to the more traditional diplomacy of building networks with allies, alarmed at the dominance of China in resources central to the high-end technology sector.

The four powers said they would also work together on two maritime initiatives — one that combines their surveillance capabilities, and another that will provide enhanced real-time information to commercial traffic at sea.

In a first, Australian Foreign Minister Penny Wong said the Quad was cooperating on assisting port development in Fiji — a key island nation in the South Pacific, where China has made a concerted push for greater influence.

“We recognise our obligation — our responsibility — to provide real choices, particularly as strategic circumstances in our region are deteriorating,” Wong said.

The Quad in a statement also set a goal of connecting South Pacific islands through undersea cables by the end of the year, integrating them economically to the four democracies rather than China.

Reacting to the meeting, Chinese foreign ministry spokeswoman Mao Ning said that cooperation “should not be directed against any third party”.

“We also do not support exclusive cliques or bloc confrontations,” she told reporters.

Trump has been dismissive of major allies, repeatedly saying they unfairly burden the United States financially.

While Rubio held two Quad meetings last year, including one hour after taking office, Trump declined to commit to a four-way leaders’ summit.

It marked a contrast to his predecessor Joe Biden, who put a priority on alliances and vowed that Quad summits were “here to stay”.

Rubio said the Trump administration wanted the Quad to focus more on deliverables than meetings, and said cooperation was progressing “pretty aggressively”.

Disagreement on Iran

Freedom of navigation has long been Washington’s codeword for opposing China’s assertiveness at sea, a particular concern for Japan.

The Quad ministers said in a joint statement they were “seriously concerned” about the South China Sea and East China Sea and opposed “destabilising or unilateral actions” — a clear reference to Beijing.

The United States has recently pointed to the principle of freedom of navigation as it tries to rally allies to counter Iran, which has exerted control over the strategic Strait of Hormuz in response to the US-Israeli war launched on February 28 and which sent global oil prices spiralling.

No US ally other than Israel has robustly supported the decision to attack Iran, enraging Trump, who has questioned the reliability of US partners he had not consulted beforehand.

Australian Prime Minister Anthony Albanese is one of the few world leaders who has voiced some understanding for the Iran war, citing concerns about Tehran’s disputed nuclear programme. Still, he has not assisted the war effort, and Trump said he was “not happy with Australia”.

Japan and India have historically both maintained cordial relations with Iran, although they grudgingly complied with US sanctions on Iranian oil.

Iranian media said on Tuesday that Tehran’s negotiators were seeking the release of around $24 billion in frozen assets abroad as part of a process aimed at ending the war with the United States.

The report by Tasnim News Agency came as a top Iranian delegation was in Qatar, and after Tehran said it was finalising a 14-point framework for a deal on ending the war, which began with US-Israeli airstrikes against Iran on February 28.

“Iran’s frozen assets are to be released during the course of the negotiations, and this amount is estimated at $24 billion in accordance with the 14-point memorandum of understanding,” Tasnim quoted an unnamed source close to the negotiating team as saying.

Around half of that sum “should be made available at the start of the announcement of the memorandum,” it added.

Tasnim was the only Iranian outlet carrying the report.

Top negotiator Mohammad Bagher Ghalibaf along with Foreign Minister Abbas Araghchi and Central Bank Governor Abdolnaser Hemmati arrived in Qatar on Monday for talks.

On Tuesday, Tasnim said Ghalibaf’s visit to Qatar was “aimed at reaching an understanding on the implementation of Iran’s demand and the method of accessing $12 billion in the first phase,” among other issues.

There is no official figure for the amount of frozen Iranian assets abroad, though Iranian media have recently estimated the total at between $100 billion and $123 billion.

In 2023, $6 billion in frozen Iranian funds held in South Korean banks was transferred to Qatar pending the release of five American citizens detained in Iran.

The funds were never released as relations between Washington and Tehran deteriorated following Hamas’s October 7, 2023 attack on Israel, which triggered the Gaza war.

An explosion damaged a tanker close to its waterline as it sailed off Oman, a marine monitor said Tuesday, as tensions remained high around the blockaded Strait of Hormuz.

“The crew and vessel are safe, although the master reports some bunker fuel has discharged into the sea,” UK Maritime Trade Operations said.

The incident, in the Gulf of Oman about 60 nautical miles east of Muscat, was an “external explosion”, UKMTO added, without detailing the cause of the blast.

Iran has been laying mines in waters nearby as part of its campaign to block Hormuz, which normally carries one-fifth of global oil production.

Hours earlier, US forces launched overnight strikes on missile sites in Iran and on boats that they said were trying to lay mines in Gulf waters.

Iran’s Islamic Revolutionary Guard Corps (IRGC) said on Tuesday that it had shot down a US MQ-9 drone and fired at other American aircraft that entered Iranian airspace, as tensions with Washington remained high despite ongoing peace discussions.

In a statement carried by the IRGC-affiliated Sepah News website, the Guards said US military aircraft had entered Iranian airspace in the Persian Gulf region, prompting Iranian air defence units to respond.

The statement said the IRGC had “identified and shot down an MQ-9 drone” and had also fired upon an RQ-4 drone and an “intruding” F-35 fighter jet.

The statement did not specify when the incidents took place or whether any of the other aircraft were hit.

Iranian state media separately quoted the IRGC as saying it reserved the “legitimate and definite” right to retaliate against any violations of the ceasefire by the United States.

The developments came as negotiations continued on a possible framework to end the months-long conflict.

Separately, Iran’s judiciary announced the execution of a man convicted of spying for Israel’s Mossad intelligence agency.

The judiciary’s Mizan Online website said Gholamreza Khani Shakarab had been executed after the Supreme Court upheld his sentence on charges of “intelligence cooperation and espionage in favour of the Zionist regime”.

Mizan described him as “one of the operational ringleaders of Mossad abroad” who had allegedly attempted to recruit individuals inside Iran for “anti-security actions”.

Iran’s Supreme Leader Ayatollah Mojtaba Khamenei has said that the United States would no longer have a “safe haven” in the Gulf region, warning that regional countries would no longer act as a shield for American military bases.

In a statement posted on his Telegram channel on Tuesday, Khamenei said Gulf states and territories would no longer “serve as a shield” for US forces, adding that Washington would be unable to establish or maintain military bases safely in the region.

“The hands of time do not turn back, and the nations and territories of the region will no longer serve as a shield for American bases. America will no longer have a safe haven for evil or for establishing military bases in the region,” he said.

The remarks come as Tehran and Washington continue discussions on a possible framework to end their three-month-long conflict.

Separately, in a message marking the Hajj season, Ayatollah Mojtaba Khamenei said the “shaky Zionist regime and the cancerous tumour of ‘Israel’ is approaching its final days.”

Mojtaba Khamenei became Iran’s supreme leader in March following the death of his father, Ayatollah Ali Khamenei, who was killed in US-Israeli air strikes.

At the beginning of ​the Quad meeting on Tuesday, Indian Foreign Minister S Jaishankar said Australia, India, Japan and the US need ‌to address “connectivity choke points” and resource concentration.

“We have to address issues like supply chain resilience, connectivity choke points, manufacturing and resource concentration and gaps in critical infrastructure,” he said.

The meeting between the countries’ top diplomats — Australia’s Penny Wong, India’s Jaishankar, Japan’s Toshimitsu Motegi and US Secretary of State Marco ​Rubio — is the third such gathering since September 2024.

The meeting is expected to last less than an hour ​and will be followed by statements from the four countries’ diplomats.

The Quad meeting comes as the US ⁠and Iran have circled around a possible deal to end their three-month conflict and reopen the Strait of Hormuz.

The countries share ​concerns about China’s growing power and Rubio — who arrived in India on Saturday for a four-day visit aimed at shoring up ​relations with New Delhi — has stressed the importance of maintaining a “free and open Indo-Pacific.”

“Our goal collectively over the last year has been to turn this from a forum in which we meet and talk about problems to one where we actually do something about it,” Rubio said in his ​opening statement.

Rubio recently said the US would like the Quad to take “concrete actions” on issues like maritime security and critical minerals, ​adding that diplomats would work toward a leaders’ meeting later this year.

“I don’t have a date on that yet, but hopefully this year ‌we’ll find ⁠a time for all four leaders to get together,” Rubio said.

Tokyo is especially eager to diversify its supplies of critical minerals after Beijing stopped shipments of some materials used in aerospace, defence and chip-making industries to Japan following a diplomatic dispute.

The closure by Tehran of the crucial waterway has upended energy markets and disrupted the global economy, an issue that is likely to feature prominently ​in Quad discussions.

Previous Quad meetings ​have put forward initiatives to maintain “the ⁠free and open maritime order” in the Indo-Pacific by improving information gathering on what is happening in their waters.

Last week, a Japanese foreign ministry official said Japan expected the US-Israeli war on ​Iran to be raised, along with tensions in the East China Sea and South China ​Sea, where China’s ⁠heightened military presence in disputed waters has escalated tensions with Tokyo, the Philippines and other countries.

Beijing has criticised the Quad as a Cold War-style construct aimed at containing its development.

India, too, has territorial disputes with China, though Modi had signalled a willingness to improve ties with ⁠Beijing amid ​his tensions with Trump.

New Delhi has pressed for a Trump visit to ​India, a trip that would likely be tied to a Quad summit.

Analysts have questioned whether a lack of leader-level engagement has downgraded the Quad’s importance.

The US and Iran are ‌discussing a plan to open the Strait of Hormuz about 30 ​days after the two ​countries reach a deal to ⁠end hostilities, the Nikkei newspaper reported on Monday, citing a ​Middle East diplomatic source.

Iran would proceed to clear mines from the ​strait during a 30-day window ​following an agreement, after which ships ‌from ⁠all countries would be able to navigate freely and safely, and Iran would stop collecting ​transit ​fees, Nikkei ⁠said.

The ceasefire agreed in early April would ​be extended for 60 ​days, ⁠with the plan to hold talks on Iran’s nuclear programme ⁠during ​the two-month pause, ​the report added.

Brent crude futures rose over 2% in Asian trade on Tuesday after the US military carried out strikes in Iran, keeping markets on edge ​as a deal to end the war and open up the Strait of Hormuz remained ‌elusive.

Brent futures were up $1.98, or 2.1%, to $98.12 a barrel as of 0405 GMT, after settling 7% lower in the previous session.

US West Texas Intermediate crude was at $91.79 a barrel, up slightly from Monday’s last traded price but down $4.81, or 5%, from Friday’s close.

There was no settlement on Monday due to the ​US Memorial Day holiday.

While both contracts fell during the overnight session on hopes of a peace ​deal, the US strikes in southern Iran and Israeli attacks on Hezbollah have boosted Brent ⁠prices and widened the spread with WTI, said Michael McCarthy, CEO of online trading platform Moomoo Australia.

Tehran has effectively halted nearly all non-Iranian shipping into and out of the Gulf via the Strait of Hormuz since the war began, choking ​off about a fifth of global oil and liquefied natural gas flows.

Nikkei reported, citing a Middle East diplomatic source, that Iran would clear mines from the strait within a 30‑day window under the agreement, after which vessels from all countries could ​navigate freely and safely, ​with Tehran also ending ⁠transit fee collection.

“Traders are betting heavily that a breakthrough will finally free up the long-paralysed tankers stuck in and around the Strait of Hormuz,” said Tim Waterer, chief ​market analyst at KCM Trade.

US President Donald Trump on Monday repeated his demand that Iran hand over its ⁠enriched uranium ​so it could be destroyed.

“It’s a sharp reminder that the deal ​could still collapse at the eleventh hour, much like the five previous attempts before it,” said Tony Sycamore, a market analyst at IG.

US Secretary of State Marco Rubio said on Tuesday that negotiating a deal with Iran could “take a few days,” quashing hopes for an imminent end to the conflict ​a day after US forces conducted what Washington called defensive strikes in southern Iran.

Describing the strikes against targets including boats attempting to lay mines ‌and missile launch sites, Rubio said the Strait of Hormuz has to be open “one way or the other.”

“The straits have to be open; they’re going to be open one way or the other, so they need to be open,” Rubio told reporters on his plane in India’s Jaipur.

Despite a ceasefire in place since early April, US Central Command said in a statement on Monday it had carried ​out fresh strikes designed “to protect our troops from threats posed by Iranian forces.”

Iran said on Monday it had downed a “hostile” stealth drone using a new air ​defence system, Iranian news agencies reported, without saying where it had come from.

The US attacks came as Iran’s top negotiator and its ⁠foreign minister were in Doha for talks with Qatar’s prime minister on a potential deal with the US to end the three-month-old war, an official briefed on the visit ​said.

Rubio told reporters in New Delhi earlier that the US would give diplomacy every chance to succeed before considering whether to deal with Iran in “another way”.

He said there was ​a “pretty solid thing on the table,” referring to talks over reopening the strait and a “very real, significant, time-limited negotiation on the nuclear matter.”

In a lengthy post on Truth Social on Monday, US President Donald Trump said talks with Iran were going “nicely”, but warned of fresh attacks if they failed.

It “will only be a Great Deal for all, or no Deal at all,” he wrote.

Doha talks

The official briefed on the Iranians’ Doha visit told Reuters the discussions focused on the Strait of Hormuz and Iran’s stockpile of highly enriched uranium, while Iran’s central bank governor attended to discuss the potential release of frozen Iranian funds as part of a final deal.

Iranian foreign ministry spokesperson Esmaeil Baghaei said earlier that nuclear issues would only be negotiated after the framework accord was agreed.

Trump has said his key aim in the war is to prevent Iran from developing a nuclear weapon ​with its highly enriched uranium.

Tehran has ​consistently denied it has plans to do ⁠that.

Since the US and Israel launched strikes on Iran on February 28, only a few dozen vessels have been passing through the ⁠Strait of Hormuz ​compared with 125 to 140 daily previously.

The stand-off has caused a spike in oil prices and driven ​up the costs of fuel, fertiliser and food.

In early Asian trade on Tuesday, US West Texas Intermediate crude was up slightly from Monday’s last traded price but down 5.5% from Friday’s close.

US forces on Monday conducted strikes in southern Iran against targets including boats attempting to lay mines and missile launch sites, in what it described as defensive actions.

The strikes ​came as Iran’s top negotiator and its foreign minister were in Doha for talks with Qatar’s prime minister on a potential deal with the US to end the three-month-old war, an official briefed on ‌the visit said on Monday, after Washington and Tehran played down hopes for an imminent breakthrough.

US Secretary of State Marco Rubio told reporters in New Delhi earlier that the US would give diplomacy every chance to succeed before considering whether to deal with Iran in “another way”.

There was a “pretty solid thing on the table in terms of their ability to open up the strait (of Hormuz), get the strait open, enter into a very real, significant, time-limited negotiation on the nuclear matter, and hopefully we can pull it off,” Rubio said.

In a lengthy ​post on Truth Social on Monday, US President Donald Trump said talks with Iran were going “nicely”, but warned of fresh attacks if they failed.

It “will only be a Great Deal for all, or no Deal at ​all,” he wrote.

Hours later, US Central Command said in a statement it had carried out fresh strikes designed “to protect our troops from threats posed by Iranian forces.”

“US Central ⁠Command continues to defend our forces while using restraint during the ongoing ceasefire,” said Navy Captain Tim Hawkins, a Central Command spokesperson.

Also on Monday, Iran said it had downed a “hostile” stealth drone using a new air defence system, Iranian news ​agencies reported, without saying where it had come from.

“This is a sign from us that no more stealth drones can penetrate the skies of the Persian Gulf,” Fars quoted unnamed officials as saying.

In another indication of the region’s tensions, radical ​Israeli regime leader Benjamin Netanyahu said on Monday that Israel would intensify strikes against the anti-Israel Hezbollah group in Lebanon.

Israel’s military soon thereafter said it was attacking Hezbollah infrastructure in Lebanon’s eastern Bekaa Valley and other areas.

Israel and Lebanon agreed to a ceasefire in mid-April, but Israel has continued air strikes in Lebanon, killing thousands, including women and children.

The official briefed on the Iranians’ Doha visit told Reuters the discussions focused on the Strait of Hormuz and Iran’s stockpile of highly enriched uranium, while ​Iran’s central bank governor attended to discuss the potential release of frozen Iranian funds as part of a final deal.

Iranian foreign ministry spokesperson Esmaeil Baghaei said earlier that nuclear issues would only be negotiated after the framework accord was ​agreed.

Trump has said his key aim in the war is to prevent Iran from developing a nuclear weapon with its highly enriched uranium.

Tehran has consistently denied it has plans to do that.

Trump pushes Abraham Accords

In his Truth Social post, Trump also called ‌on more Arab ⁠and Muslim states to sign up to the Abraham Accords, brokered during his first term in office and aimed at normalising ties between those states and Israel.

He said Saudi Arabia and Qatar should immediately sign and Pakistan, Egypt, Jordan and Turkey should follow suit, calling his request mandatory.

Netanyahu’s office did not respond to a request for comment.

A Pakistani source familiar with the matter said that the statement reflected an attempt to use the Iran diplomacy for a wider push around the accords — but that the two issues were “not interlinked and cannot be made so.”

Others saw the suggestion as aimed at making an Iran deal more palatable to sceptics.

“Trump is trying to sell an Iran deal as an Abraham Accords sequel: good for Israel, good ​for the region, tough enough for Washington,” said Ali Vaez, ​Iran project director at the International Crisis Group.

“But ⁠he is trading one fantasy for another — from forcing Iran to surrender to pretending a fragile deal can anchor a new Middle East order.”

Iran deal sticking points

Baghaei said the potential Iran deal contained no specific details on management of the Strait of Hormuz, through which about a fifth of the world’s oil and liquefied natural gas usually flows.

Iran will not charge ​tolls for ships to pass through, but there will be a cost for services offered, such as navigation and steps to protect the environment, he said, under a ​protocol to be agreed with Oman, ⁠which lies on the opposite shore of the waterway.

Citing a Middle East diplomatic source, Japan’s Nikkei newspaper reported the US and Iran were discussing a plan to open the strait about 30 days after reaching a deal to end hostilities.

Iran would then clear mines from the strait during a 30-day window, after which ships from all countries could navigate freely and safely, Nikkei reported.

Since the US and Israel launched strikes on Iran on February 28, only a few dozen vessels have been passing through the Strait of ⁠Hormuz compared with ​125 to 140 daily previously.

Iran’s state TV said on Monday that 32 vessels and five oil tankers passed through the strait in the past ​24 hours with the authorisation of Iran’s Revolutionary Guards naval forces.

The standoff has caused a spike in oil prices and driven up the costs of fuel, fertiliser and food.

On Monday, oil prices fell more than 4% to two-week lows amid optimism that a deal might come soon.

Saudi Arabia has reaffirmed that it will not recognise Israel without the establishment of an independent Palestinian state, according to reports by CNN and Al Arabiya.

The reports said Saudi officials rejected calls by US President Donald Trump to join the Abraham Accords unless clear and irreversible steps are taken towards Palestinian statehood.

According to CNN, Saudi officials stressed that Riyadh’s position on Palestine had not changed and that normalisation with Israel remained conditional on the creation of an independent Palestinian state.

Saudi leadership also made it clear that there had been no shift in policy regarding the Palestinian issue, Al Arabiya reported.

The reports come after Trump urged Middle Eastern countries to join the Abraham Accords following a possible agreement with Iran.

According to CNN, Trump recently used social media to encourage Muslim and Arab countries to establish ties with Israel and become part of the Abraham Accords framework.

However, sources cited by the US broadcaster said Trump did not present participation in the accords as a formal condition linked to a potential deal with Iran during recent discussions with regional leaders.

The report added that regional leaders did not immediately respond to the proposal.

CNN, citing regional sources, said some countries could still consider joining the Abraham Accords, but any such move may include conditions related to Israeli actions in Gaza, the occupied West Bank and Lebanon.

Rashid Al Mohannadi, an expert affiliated with the Middle East Council on Global Affairs, said the Abraham Accords had improved bilateral ties between Israel and Gulf Arab states but had failed to address the issue of Palestinian statehood.

Speaking to CNN, he said one of the original aims of the accords was to halt annexation efforts in the West Bank, but developments on the ground suggested the opposite, with Israeli actions in the territory continuing.

The Abraham Accords, brokered during Trump’s previous administration, led to the normalisation of relations between Israel and several Arab countries, including the United Arab Emirates and Bahrain.

Mexican President Claudia ​Sheinbaum said on Monday her government agreed to allow ‌the Iranian national football team to stay in Mexico during the World Cup, adding that the United States did not want ​to host the team.

Sheinbaum said football’s governing body FIFA ​approached her government after the US said it ⁠did not want Iran’s squad to stay in the ​country throughout the tournament, despite Iran playing all three of ​its group matches there.

“We have no reason to deny them the possibility of staying in Mexico,” Sheinbaum said during her daily press conference.

The ​White House and the State Department did not immediately ​respond to a request for comment.

Mehdi Taj, head of Iran’s football ‌federation, ⁠said on Saturday the team’s base would be moved from Arizona to the Mexican border city of Tijuana during the tournament.

Taj added that the move would help avoid visa-related complications ​and that the ​squad would ⁠be able to travel directly to Mexico aboard Iran Air flights.

The Iranian team’s participation in ​the June 11-July 19 tournament had been ​in question ⁠since the U.S. and Israel attacked Iran in late February.

Iran will play its first two Group G matches in Los ⁠Angeles against ​New Zealand on June 15 ​and Belgium on June 21, before facing Egypt in Seattle on June 26.

A high-level Iranian delegation that includes the country’s top negotiator and central bank chief was in Doha on Monday to discuss an agreement with the US and the release of frozen funds, a source briefed on the matter told AFP.

“Iran’s Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi arrived in Doha earlier today for talks on ongoing diplomatic efforts to end the conflict,” the source said, requesting anonymity to discuss sensitive matters.

The visit will focus, the source added, “on issues relating to the Strait and highly enriched uranium. The Central Bank governor is part of the delegation to discuss the issue of frozen funds, which is addressed in the MoU as part of an eventual final deal”.

Iran’s official news agency IRNA confirmed the visit, saying: “This trip comes as part of the diplomatic process.”

Other media in Iran including Tasnim and Fars news agencies said the delegation included Iranian Foreign Minister Abbas Araghchi as well as Central Bank Governor Abdolnaser Hemmati.

According to Fars, Washington agreed to release part of Tehran’s funds frozen abroad under international sanctions and to end its naval blockade of ships travelling to and from Iranian ports in exchange for ending the Hormuz blockade.

In 2023, $6 billion of frozen Iranian funds from South Korean banks were parked in Qatar pending the release of five American citizens held by Iran.

The funds were never released as ties soured between Washington and Tehran after Hamas’s October 7, 2023, attack on Israel.

Pakistan has so far been a main mediator in the peace talks between the United States and Iran.

The talks, ongoing since a ceasefire came into force on April 8, aim to comprehensively end the war and fully reopen the Strait of Hormuz.

In recent weeks, Qatar, which has mediated between Iran and the United States in the past, appears to have played a growing role in pushing for talks.

Earlier this month, Sheikh Mohammed bin Abdulrahman Al Thani held meetings with top US diplomat Marco Rubio and Vice President JD Vance in the United States to push for diplomacy.

Iran launched waves of missile and drones against Gulf states including Qatar in response to US and Israeli strikes on the Islamic Republic that began on February 28.

Its blockade of the Strait of Hormuz, through which about a fifth of the world’s oil and natural gas usually passes, has also halted crucial maritime exports for the energy-rich Gulf, including Qatar’s LNG exports, straining their economies.

US President Donald Trump said on Monday that he has asked countries, including Qatar, Saudi Arabia, Pakistan, Egypt, Jordan ​and Turkey, to join the Abraham Accords en masse to normalise relations ‌with Israel as part of an agreement with Iran.

Trump said he spoke on Saturday to leaders of those countries, as well as the United Arab Emirates and Bahrain, which have already signed the accords, a set of agreements ​to normalise relations with Israel.

“I am mandatorily requesting that all Countries immediately sign ​the Abraham Accords, and that, if Iran signs its Agreement with me, ⁠as President of the United States of America, it would be an Honor to have ​them also be part of this unparalleled World Coalition,” Trump wrote in a post on ​Truth Social.

He cited “all the work done by the United States to try and pull this very complex puzzle together.”

Trump said those countries would be honoured to have Iran as part of the accords once ​a deal to end the war is reached.

Israeli Prime Minister Benjamin Netanyahu’s office did ​not immediately respond to a request for comment on Trump’s post.

Trump said one or two of the countries ‌he ⁠spoke with may have a reason for not joining, but most should be “ready, willing, and able to make this Settlement with Iran a far more Historic Event than it would, otherwise, be.”

Trump also said negotiations with Iran were “proceeding nicely” but gave no indication a deal ​was imminent.

Trump has repeatedly ​said he wants to ⁠expand the accords that he brokered during his first term in the White House.

The United Arab Emirates and Bahrain signed during ​Trump’s first term in 2020, breaking a longstanding taboo to become ​the first Arab ⁠states to recognise Israel in a quarter century. Morocco and Sudan followed suit.

Trump had been upbeat about prospects that regional heavyweight Saudi Arabia would finally join the accords after a ⁠ceasefire went ​into effect in Gaza last year, but Riyadh has ​shown no willingness to move ahead.

Egypt and Jordan have already established relations with Israel.

US Secretary of State Marco Rubio said a deal to end the war with Iran could materialise on Monday, as President Donald Trump tempered expectations.

The United States and Iran have observed a ceasefire since April 8 while mediators push for a negotiated settlement, although Iran has imposed controls on Gulf shipping and the US has blockaded Iran’s ports.

“We thought we might have some news last night, maybe today, I wouldn’t read too much into it,” Rubio said in New Delhi, referring to the potential agreement.

“We have what I think is a pretty solid thing on the table in terms of their ability to open up the straits, get the straits open,” he told reporters in the Indian capital, where he has been on an official visit.

Rubio’s remarks come after Trump said Sunday that he had told his negotiators not to “rush” the deal, while both Washington and Tehran signalled progress towards an agreement.

“I have informed my representatives not to rush into a deal in that time is on our side,” a Truth Social posted to the US president’s official account said Sunday.

“The Blockade will remain in full force and effect until an agreement is reached, certified and signed.”

In a separate post to Trump’s Truth Social, it read that the deal “has been largely negotiated, subject to finalisation between the United States of America, the Islamic Republic of Iran and the various other Countries.”

Iran’s Tasnim news agency said Sunday its information was that key clauses of a possible agreement remained “unresolved at this time,” including the issue of frozen Iranian assets.

The war, which erupted after the United States and Israel attacked the Islamic Republic on February 28 and saw Iran respond with missile and drone attacks across the region, has caused fluctuations in the market.

But the hint of optimism caused oil prices to plunge close to five per cent on Monday.

The price of North Sea Brent crude and West Texas Intermediate slipped to $99.41 and $92.49 a barrel, respectively.

Nuclear issue

Rubio told The New York Times that an agreement with Iran had gained regional support, but a nuclear deal couldn’t be achieved “in 72 hours on the back of a napkin.”

“Right now, we have seven or eight countries in the region that are endorsing this approach, and we’re prepared to move forward on this approach,” he said.

Earlier, Rubio had said a bargain could be struck to end the regional war as early as Sunday, but Trump again reined in expectations.

A post on Trump’s Truth Social read: “If I make a deal with Iran, it will be a good and proper one,” adding that “It isn’t even fully negotiated yet.”

Israel’s Prime Minister Benjamin Netanyahu said Sunday that he and Trump had agreed that “any final agreement with Iran must eliminate the nuclear threat entirely.”

‘Lasting peace’

Iranian officials confirmed the existence of a draft agreement but stressed that — despite the long-standing US demand for an end to its uranium enrichment — talks on the issue of Iran’s contested nuclear programme have been deferred for 60 days after any deal.

Iranian President Masoud Pezeshkian told state television that Tehran was “still prepared to assure the world that we are not seeking nuclear weapons,” but it was unclear if this promise would be enshrined in the text of the deal.

According to Iran’s Fars news agency, “sanctions on oil, gas, petrochemicals and their derivatives would be temporarily lifted during the negotiation period so that Iran can freely sell its products.”

Leaders from Saudi Arabia, the United Arab Emirates, Qatar, Egypt, Jordan and Bahrain, as well as representatives from Turkey and Pakistan, joined a call with Trump to discuss the deal on Saturday.

Pakistan, which mediated historic face-to-face negotiations between US and Iranian delegations in April, hopes to host another round of talks “very soon,” Prime Minister Shehbaz Sharif said.

He said Pakistan’s Chief of Army Staff and Chief of Defence Forces Field Marshal Syed Asim Munir, who visited Tehran on Friday and Saturday, also joined the call, which moved “ongoing peace efforts forward.”

‘Back into chaos’

Israel’s military continued to pound what it says are Hezbollah targets in southern and eastern Lebanon, despite an April 17 ceasefire — broken by both sides.

Iran-backed Hezbollah pulled Lebanon into the war by attacking Israel, starting on March 2, after US-Israeli strikes killed Iran’s supreme leader.

Rubio on Sunday accused Hezbollah of trying to plunge Lebanon “back into chaos” and condemned the group’s “reckless” call to overthrow Lebanon’s “democratically elected government.”

Iran and the US appear closer than in recent months to a potential understanding that could ease tensions in the Middle East and reduce pressure around the Strait of Hormuz, but major disputes remain unresolved, according to a report by The New York Times.

While both Washington and Tehran have signalled progress, the two sides are presenting sharply different accounts of what has been agreed — particularly on Iran’s nuclear programme, sanctions relief, and the future of maritime security in the Gulf.

Nuclear programme

At the centre of the talks is Iran’s nuclear programme, especially its stockpile of highly enriched uranium.

US officials cited in the report said there is a preliminary understanding that Iran would eventually dispose of its stockpile of near weapons-grade material, though the mechanism remains under negotiation.

Iranian officials, however, have pushed back, saying no final agreement has been reached and that nuclear issues will continue to be discussed over the coming weeks.

The question of whether Iran must halt enrichment entirely also remains unresolved, with US officials suggesting it could be deferred to later negotiations.

Strait of Hormuz

The Strait of Hormuz remains another key sticking point.

Iranian officials reportedly indicated Tehran could allow shipping to pass freely without transit fees if US restrictions are lifted.

However, US President Donald Trump has said existing measures, including a naval blockade targeting Iranian-linked vessels, will remain in place until a final agreement is reached.

The disagreement underscores broader uncertainty over how maritime rules would be enforced in one of the world’s most critical energy corridors.

Frozen assets

Sanctions relief is also a major point of contention, with Iranian officials suggesting the deal could eventually unlock around $25 billion in frozen overseas assets.

US officials, however, say no commitment has been made at this stage, with any release contingent on Iran meeting nuclear-related conditions.

Iran-backed groups

The report also highlights uncertainty over Iran’s regional role.

Iranian officials reportedly suggest that the proposed framework could include a wider ceasefire involving Tehran-backed groups such as Hezbollah, but US officials have not confirmed any such arrangement.

Israeli Prime Minister Benjamin Netanyahu has indicated that Israel would continue to act independently on security threats in Lebanon regardless of any US-Iran understanding.

Missile programme

Another unresolved issue is Iran’s ballistic missile programme, which appears to be excluded from the current draft framework.

US officials say missiles are not part of the ongoing discussions, despite concerns from Israel and Gulf states that they remain a major regional threat.

Analysts warn that while the emerging outline of a deal may reduce immediate tensions, the number of unresolved issues means any agreement would likely remain fragile and open to future escalation.

Iran on Monday said it was not seeking to impose tolls on ships passing through the strategic Strait of Hormuz, but noted that fees could apply for navigational and environmental protection services in the area.

Speaking at a press briefing, Iranian Foreign Ministry spokesman Esmaeil Baghaei said the management and security of the waterway rested with the countries bordering the Strait of Hormuz.

“The services that are provided — navigational services in addition to the measures necessary to protect the environment of the Strait of Hormuz, the Persian Gulf and the Sea of Oman — require the collection of certain fees,” Baghaei said.

However, he stressed that Tehran was “not seeking to collect tolls” from vessels transiting the key shipping route.

Baghaei added that Iran was coordinating with neighbouring countries bordering the Strait of Hormuz to ensure security in the area and safeguard their interests.

Iran on Monday said Tehran and Washington had made progress in talks aimed at ending the war, but warned that a final agreement was not yet within reach.

Speaking at a weekly media briefing, Iranian Foreign Ministry spokesman Esmaeil Baghaei said the two sides had “reached a conclusion on a large portion of the issues under discussion,” signalling movement in negotiations between the longtime rivals.

However, Baghaei pushed back against suggestions that a breakthrough deal was imminent.

“To say that this means the signing of an agreement is imminent — no one can make such a claim,” he said, while also accusing Washington of shifting its positions during the negotiations.

Baghaei said conclusions ‌have been reached on many topics ​discussed in a ​potential memorandum of understanding ⁠with the US, ​but this does ​not mean Tehran is close to signing an ​agreement.

The spokesman added that Iran’s current focus in the talks is securing an end to the war, rather than discussing nuclear-related issues.

He warned that changes in the positions of US officials were complicating prospects for a final agreement.

Prime Minister Shehbaz Sharif on Monday appreciated the support of Chinese leadership in promoting peace and achieving the US-Iran ceasefire, informed his counterpart Li Qiang that a lot of ground had already been covered, and the situation was moving in the right direction for the restoration of peace in the region.

“We hope and pray to Allah Almighty that peace will be restored. A lot of ground has already been covered. Things are moving in the right direction,” the prime minister said in his opening remarks during the meeting with Premier Li Qiang at the Great Hall of the People, during his five-day official visit to China.

The prime minister, who was earlier accorded a guard of honour, thanked President Xi Jinping and the Chinese leadership for their great support to Pakistan in promoting peace and achieving a ceasefire, assuring President Xi’s four-point agenda would be fully endorsed.

He also mentioned the five-point support programme for the ceasefire, announced after Deputy Premier Ishaq Dar’s meeting with Chinese Foreign Minister Wang Yi.

He said that the world was passing through a very critical moment amid a crisis in the Gulf, and Pakistan had played a very sincere role in mediating between the United States and Iran.

Referred to Field Marshal Asim Munir’s visit to Iran, who was also present in the meeting, said that he had played a very important role, going back and forth with the Iranian leadership and American leadership, along with Deputy Prime Minister Ishaq Dar and his counterparts, not only in Iran but also in the Gulf countries.

“I think we have to really be together so that the world at large is at peace and business as usual starts again, because this crisis has hit not only the economies in the region — including Pakistan, which is a net importer of oil and oil products — but the global community,” Prime Minister Shehbaz said.

Expressing his gratitude to Premier Li for the invitation, he said it was always a great pleasure to visit China, as each time new changes and major developments were witnessed.

He also expressed deepest condolences on the tragic gas explosion at the coal mine in Shanxi, causing deaths and injuries, conveying full solidarity to the victims and their families.

The prime minister said that both countries were celebrating 75 years of “glorious” friendship and diplomatic relations established by their founding fathers, who laid a strong foundation and an edifice between the two countries.

Both countries were trying to take that legacy forward on this great journey towards promoting our relations.

In his remarks, Premier Li said that Pakistan had maintained close communication and coordination, safeguarded common interests, and injected positive energy into regional peace.

He said during his meeting with Prime Minister Shehbaz later in the day, President Xi Jinping would provide strategic guidance for further deepening bilateral relations.

“China is ready to work with Pakistan to pursue greater solidarity, carry forward traditional friendship, firmly support each other, and keep expanding practical cooperation to deliver more results in building a community with a shared future for the two countries,” he added.

The United States will either have a good agreement with Iran or deal with the country “another way,” Secretary of State Marco Rubio said ​on Monday, as Washington played down hopes for an imminent breakthrough in the three-month-old war.

Rubio told reporters in New Delhi that the US would give diplomacy every chance to ‌succeed before exploring “alternatives”, after President Donald Trump said on Sunday he had told his representatives not to rush into any Iran deal.

There was a “pretty solid thing on the table in terms of their ability to open up the Strait, get the Strait open, enter into a very real, significant, time-limited negotiation on the nuclear matter, and hopefully we can pull it off,” Rubio said.

A day earlier, Trump wrote on Truth Social that the US blockade on Iranian ​ships in the Strait of Hormuz would “remain in full force and effect until an agreement is reached, certified, and signed”.

He added, “Both sides must take their time and get it ​right.”

There was no immediate response from Iran’s government.

But the Tasnim news agency, linked to Iran’s Revolutionary Guards, said the US was still obstructing parts ⁠of a potential deal, including Tehran’s demand for the release of frozen funds.

Oil prices fell 6% to two-week lows on Monday, as optimism grew that the United States and Iran were moving ​closer to a peace deal.

Trump raised expectations of an imminent deal on Saturday when he said Washington and Tehran had “largely negotiated“ a memorandum of understanding on a peace agreement that would reopen the Strait ​of Hormuz.

Before the conflict, the critical waterway had carried a fifth of global shipments of oil and liquefied natural gas.

The two sides remain at odds on several difficult issues, such as Iran’s nuclear ambitions, Israel’s war in Lebanon with the anti-Israel Hezbollah group and Tehran’s demands for the lifting of sanctions and the release of tens of billions of dollars of Iranian oil revenues frozen in foreign banks.

Sticking points

A senior Trump administration official outlined what he said ​were the latest contours of issues being negotiated.

Speaking on the condition of anonymity, the official said Iran had agreed “in principle” to open the Strait of Hormuz, in exchange for the United States ​lifting its naval blockade, and to dispose of Tehran’s highly enriched uranium.

The US understood Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had endorsed the broad template of the deal, he added.

There was no immediate confirmation from Iran or ‌elaboration on ⁠what an “in principle” agreement meant.

The US official said Washington envisioned first reopening the strait and lifting the US naval blockade.

Negotiating the details of the nuclear measures would take more time.

The official pushed back on suggestions that Iran had not accepted disposing of its stockpiled enriched uranium.

“It’s a question about how,” the official said.

A second senior administration official said on Sunday the proposed framework would give negotiators 60 days to reach a final deal.

Iranian sources had told Reuters that in future stages, “feasible formulas” could be found to resolve the dispute over its highly enriched uranium stockpile, including diluting the material under ​the supervision of the UN nuclear watchdog.

Iran has ​long denied US and Israeli accusations that it ⁠is pursuing nuclear weapons and says it has a right to enrich uranium for civilian purposes, although the purity it has achieved far exceeds that needed for power generation.

Trump, whose approval rating has been hit by the war’s impact on US energy prices, and who has faced congressional efforts to curb ​his war powers, has repeatedly played up the prospect of a deal to end the conflict started by the US and Israel on February ​28.

A tenuous ceasefire has held ⁠since early April.

The president hit back at critics of his handling of the negotiations and his willingness to compromise with Iran.

“If I make a deal with Iran, it will be a good and proper one … So don’t listen to the losers, who are critical about something they know nothing about,” Trump posted on Sunday.

Any deal reinforcing the current fragile ceasefire would bring relief to markets but not immediately defuse a ⁠global energy crisis, ​which has driven up costs of fuel, fertiliser and food.

The US-Israeli bombing of Iran killed thousands of people in ​Iran before it was suspended in early April.

Israel has also killed thousands more and driven hundreds of thousands from their homes in Lebanon, which it invaded in pursuit of the anti-Israel Hezbollah group.