eases

President Trump signaled he’s prepared to let economic pressure on Iran build rather than launch fresh military strikes to force a reopening of the Strait of Hormuz, even as the Islamic Republic reiterated that the conditions still aren’t in place to allow free passage through the key waterway.

“We are just watching Iran with its huge inflation and the fact they have no money,” Trump told Axios in an interview on Sunday, saying that a US naval blockade of the country was deepening its financial woes. “We are low-keying it.”

The president’s comments mark a shift from his repeated threats to escalate the bombing campaign against Iran and come amid lingering talks between Tehran and Oman to reopen Hormuz. Iran has said it’s nearing a deal, while laying out a list of demands for Washington to meet before shipping can resume — including the lifting of sanctions.

“As long as hostile actions continue, the conditions for ensuring the safety of this waterway are not in place,” Iran’s foreign ministry spokesman Esmail Baghaei told reporters on Monday. “Its reopening is contingent on the US ceasing its illegal actions, lifting the siege and compensating for damages.”

Brent crude rose 1% on Monday to over $84 a barrel, extending a rally of more than 5% over the previous three sessions. The contract is still down since the start of the month.

The Islamic Republic’s economy has taken a hammering from the war, with much of its industrial capacity destroyed, crude exports severely curtailed by a US blockade and central bank data showing year-on-year inflation recently reaching 77%.

The currency, meanwhile, has fallen more than 10% from its prewar level, adding to the economic pressure on Iranians. A depreciation of the rial sparked violent nationwide protests that peaked early this year, leading to a crackdown by authorities that left thousands dead. There have been no signs of the anti-government demonstrations resuming.

Iran reemphasized its determination to continue wielding control over Hormuz in the face of US opposition by naming hard-line former Islamic Revolutionary Guard Corps commander Mohsen Rezaee to its top security post over the weekend. An advocate for full Iranian control over the waterway, he served as military adviser to Iranian Supreme Leader Mojtaba Khamenei and will now head the Supreme National Security Council, which coordinates decisions on the war and negotiations to end it.

Rezaee replaces Mohammad Bagher Zolghadr, a fellow hard-liner who accepted a new position as political adviser to the supreme leader. The appointments were reported by the state-run Islamic Republic News Agency late Sunday.

Over the weekend, Iranian Foreign Minister Abbas Araghchi said a pact with Oman to establish a shipping route through the strait was “very close,” without providing details on the substance. He ruled out direct talks with the US for now, but said the two sides are exchanging messages through intermediaries.

The Strait of Hormuz, through which one-fifth of the world’s oil and liquefied natural gas transited before the war, has become a key sticking point in the negotiations to bring a lasting end to the fighting that began when the US and Israel staged airstrikes on Iran on Feb. 28. Trump has demanded free passage for months.

Tehran’s demands for a full reopening include the US lifting its naval blockade on Iranian ports, the release of frozen assets and compensation for war damage. It has also called for a permanent end to attacks on groups it backs in Lebanon, Iraq, Yemen and Gaza. It’s unclear how strictly Iran will stick to the list of conditions.

Some of the demands will be difficult for the US to meet alone. In Gaza, a proposal by US-backed mediators to disarm Iran-backed Hamas and push Israeli army out of the Palestinian enclave was rejected by Israel’s Prime Minister Benjamin Netanyahu on Sunday.

In Yemen, clashes between the Iran-backed Houthi rebels and forces from the internationally recognized government supported by neighboring Saudi Arabia, have escalated. The Houthis claimed to have struck Saudi Aramco’s Jazan refinery on Sunday, while Saudi authorities reported a fire that was quickly extinguished, with no injuries.

The incident would mark at least the second blaze at the 400,000 barrel-a-day complex in a month. Satellite images in late July showed a tank fire following another claimed Houthi attack.

Sykes writes for Bloomberg.

US announces the temporary easing of oil sanctions for 60 days after Iran agrees to allow international nuclear inspections.

Iran’s top negotiator, Mohammad Bagher Ghalibaf, says an agreement has been reached with the United States to release $12bn in frozen Iranian funds following talks in Switzerland.

The US eased sanctions on Iranian oil for 60 days after Tehran committed to allowing international nuclear inspectors to return to the country during negotiations to end the US-Israel war on Iran.

Israel and Lebanon are scheduled to hold talks in the US as a ceasefire appears to be holding in Lebanon.

So what’s the latest as the conflict enters its 116th day?

Diplomacy

• Iranian Deputy Foreign Minister Kazem Gharibabadi says technical talks with the US have concluded and the next phase “will take place under the supervision of the high-level committee” that includes Ghalibaf, Foreign Minister Abbas Araghchi and US Vice President JD Vance.
• Ghalibaf has hailed “good achievements” in the US-Iran talks and confirmed the release of two tranches of $6bn in frozen funds.
• The US Treasury Department has waived sanctions on the sale of Iranian crude ⁠oil, petrochemicals ⁠and petroleum products until ⁠August 21.
• Omani Foreign Minister Badr Albusaidi reaffirms a commitment for “toll-free passage” in the Strait of Hormuz after talks with Iranian diplomats in Muscat.
• Henry Ensher, a former US ambassador and deputy assistant secretary of state, says the release of frozen Iranian assets and the resumption of maritime traffic in the Strait of Hormuz suggest that Washington and Tehran are both “getting what they want”. “Both sides are very interested to show that, somehow, they’ve gotten the upper hand or at least that they’re not being taken advantage of,” Ensher tells Al Jazeera.

In Iran

• Iranian President Masoud Pezeshkian has called for a “full commitment to agreed obligations”. “The effectiveness of the talks depends on full commitment to the agreed obligations and their precise implementation,” Pezeshkian says.
• Ghalibaf has defended the decision to hold talks with the US, saying Iranian delegates went to Switzerland to end the bloodshed in Lebanon.
• Central Bank of Iran Governor Abdolnaser Hemmati has denied comments by US President Donald Trump that released Iranian funds would be used to buy US farm products. Hemmati tells the Tasnim News Agency that Iran has “no obligation to buy” agricultural products from the US. He says the agreement between the US and Iran on the matter says the first $6bn can be used to buy “basic goods and medicine”.

In the US

• Trump says Iran “will agree” to have weapons inspections and any released Iranian assets will be used to buy US produce.
• Democrats on the Foreign Affairs Committee of the US House of Representatives have accused Trump of granting Iran sanctions relief before making progress on key issues under negotiation, including Tehran’s nuclear programme. “Trump officials repeatedly said sanctions relief would be tied to Iran addressing its nuclear program and terrorist proxies. Neither has been addressed, but the regime has been gifted sweeping sanctions relief it has dreamed of for decades,” they say in a post on X.

In Lebanon

• A ceasefire between Israel and Hezbollah has largely held, even as fear of renewed hostilities has kept displaced people from returning home.
• The United Nations said Sunday marked the first time its peacekeepers have detected no air attacks in Lebanon since March 2, the day the war between Israel and Hezbollah escalated and two days after the US-Israel war on Iran began.
• Mahmoud Qamati, deputy head of Hezbollah’s political council, has warned that the Lebanese group will respond to any violation of the ceasefire by Israel, according to Iran’s Press TV. “Hezbollah remains fully alert with its finger on the trigger, ready to confront any violation by the Israeli regime,” Qamati is quoted as saying.
• Israeli Prime Minister Benjamin Netanyahu, Defence Minister Israel Katz and Chief of the General Staff Eyal Zamir say Israeli troops will continue to occupy southern Lebanon.

• The Israeli military will continue to “act with determination in order to neutralize threats against our soldiers and our citizens” and to demolish infrastructure belonging to Hezbollah, they say in a statement.

• The Israeli military will also continue to “maintain the security zone in southern Lebanon”, they say, referring to the land Israel occupies there, razing buildings and forcibly displacing one million people.
• Israel and Lebanon are to start a new round of direct talks in Washington, DC, on Tuesday.

Published on
22/06/2026 – 8:15 GMT+2

At the time of writing, Brent crude was down 0.91% at $79.12 a barrel, while US West Texas Intermediate (WTI) crude had fallen 0.70% to $75.32 a barrel.

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Lower crude prices reflected broader investor sentiment in early trading after Qatari and Pakistani mediators said the first round of negotiations between the US and Iran aimed at securing a final agreement to end the conflict had concluded with “encouraging progress”.

A memorandum of understanding signed last week includes a commitment to reach a final agreement within 60 days, an end to fighting on “all fronts” – including in Lebanon – and the reopening of the Strait of Hormuz.

Markets mixed as analysts monitor US-Iran negotiations

Meanwhile, Asian stocks were mixed on Monday, with markets in Japan and South Korea trading higher, while US futures traded lower.

Tokyo’s Nikkei 225 jumped 1.6% to 72,364.82 after reaching a new all-time high of 72,831.73 during intraday trading, helped by technology stocks fuelled by enthusiasm over the global artificial intelligence boom.

Japan’s SoftBank Group, the multinational investment holding company with a strong AI focus, rose 2.4%, while chip equipment maker Tokyo Electron gained 2.3%.

South Korea’s Kospi added 0.4% to 9,084.37 and was trading near record highs, led by AI-related shares. Memory chip maker SK Hynix surged 4.7%.

“We’re seeing another strong market today,” Neil Newman, managing director and head of strategy at Astris Advisory Japan, said. He cautioned that the Japanese market was “probably getting a little stretched” from an investor’s point of view, “especially with what’s going on in the Middle East”.

Hong Kong’s Hang Seng fell 1% to 23,690.86, while the Shanghai Composite Index edged 0.2% higher to 4,098.01.

Additional sources • AP

The Foreign Office has lifted its no-go travel warning after Iran and the US signed a deal

A travel expert has provided an update on journeys to and from the Gulf region following the US and Iran reaching an agreement to cease hostilities between the two nations. Speaking outside the Foreign, Commonwealth & Development Office (FCDO), Simon Calder confirmed that travel insurance was ‘once again valid’ after both the Iranian and American presidents put pen to paper on a deal to end the conflict.

This prompted the FCDO to lift its advice against travelling to several Gulf States. Nevertheless, it cautioned that the ‘situation remains unpredictable’ amid ongoing regional tensions.

Mr Calder stated that those wishing to visit the region could now do so ‘with some confidence’. He said: “I’m at the Foreign Office which has just changed its advice for travellers going to the Gulf region, in particular Dubai, which last year was visited by 1.4 million British travellers.

“As from now, the no-go warning which prevailed for the whole of the UAE, including Dubai and Abu Dhabi, as well as to the countries of Qatar, Bahrain and Kuwait, has been lifted. The Foreign Office still warns that you need to be ready for trouble to resume at any time, but it means that travel insurance is once again valid and anybody planning a trip to the UAE or Qatar or elsewhere in the region can do so with some confidence.

“The immediate effect, I think, is going to be a big marketing campaign by the giant airlines: Emirates of Dubai, Etihad of Abu Dhabi, and Qatar Airways based in Doha. They will be wanting to get people to both connect through their hubs, but also to take summer holidays. Be warned, it is extremely hot with average daily highs around 40°C.”

Not only do millions of holidaymakers head to the Gulf states, but countless others use them as a stopover for journeys to Asia and Australia. That meant the tourism industry took a particularly severe blow when the US and Israel launched strikes on Iran in late February.

The FCDO decision means tourists can now return without putting their travel insurance at risk. But that doesn’t mean flights will restart straight away.

Virgin Atlantic halted flights until winter 2027 after the conflict began, and a spokesperson confirmed on Thursday that this ‘remains the case’.

British Airways announced earlier in June that it wouldn’t restart flights to the UAE until October 2026. Emirates has maintained flights to and from the region throughout the hostilities.

Mr Calder continued: “The immediate effect, I think, is going to be a big marketing campaign by the giant airlines: Emirates of Dubai, Etihad of Abu Dhabi, and Qatar Airways based in Doha. They will be wanting to get people to both connect through their hubs, but also to take summer holidays. Be warned, it is extremely hot with average daily highs around 40°C.”

“But it means that anybody who’s planning to travel perhaps to Asia or to Australia now will be able to travel with confidence through one of the Gulf hubs. In addition, I imagine that airfares will fall because the Asian carriers will not be able to command such a premium.

“Stand by for some really good holiday offers, but I personally won’t be seeing you on the beach in Dubai until about November.”

The U.S. dollar edged lower, as investors tracked shifting developments around a potential Iran deal and the resulting moves in oil prices, which influenced inflation expectations and safe-haven demand.

The dollar index (DXY), which measures the greenback against a