Iran

Iran’s Foreign Ministry spokesperson Esmail Baghaei says Tehran’s response to the latest US proposal to end the war was “not excessive.” He says it’s the US that continues to make “unreasonable demands” during negotiations over ending the war and reopening the Strait of Hormuz.

Global currency markets remained broadly stable on Monday despite escalating geopolitical tensions linked to the ongoing conflict involving the United States and Iran. The limited movement in the US dollar came after President Donald Trump rejected Iran’s response to a United States peace proposal, reinforcing concerns that the conflict in the Middle East may persist for an extended period.

At the center of global financial attention is the interaction between geopolitical risk, energy prices, and monetary policy expectations. Rising oil prices, driven by uncertainty in the Strait of Hormuz and broader regional instability, continue to shape inflation expectations across major economies. However, currency markets have shown relative restraint, suggesting that investors are balancing immediate geopolitical risks against expectations of eventual diplomatic stabilization.

The US dollar index, which measures the currency against a basket of major global currencies, remained largely unchanged. At the same time, oil prices rose sharply, reflecting renewed concerns about supply disruptions and prolonged conflict conditions.

Geopolitical Risk and Market Equilibrium

Financial markets are currently operating in a state of tension between short term geopolitical shocks and longer term expectations of resolution. The stability of the US dollar suggests that investors are not fully pricing in a sustained breakdown in global energy flows, despite elevated uncertainty in the Middle East.

The oil market, by contrast, continues to respond rapidly to political developments. The rise in crude prices reflects concerns that prolonged instability could restrict supply routes and tighten global energy availability. This divergence between currency stability and commodity volatility highlights the uneven transmission of geopolitical risk across financial systems.

Market analysts note that expectations of diplomatic engagement between the United States and China remain a key stabilizing factor. Investors increasingly view high level diplomatic meetings as potential mechanisms for de escalation, particularly given the influence both countries exert over global energy and trade systems.

The Role of the United States and China in Market Sentiment

A major factor influencing market behavior is the anticipated summit between President Trump and Chinese President Xi Jinping. The meeting is expected to cover a wide range of strategic issues including energy security, artificial intelligence, nuclear policy, and regional conflicts.

Markets are closely monitoring this engagement because both the United States and China possess significant leverage over geopolitical and economic developments in the Middle East. China’s role as a major energy importer and diplomatic stakeholder in the region gives it potential influence over Iranian policy, while the United States remains the dominant military and financial actor in global markets.

This dual influence creates expectations that broader geopolitical tensions may eventually be moderated through strategic dialogue. As a result, investors are partially pricing in the possibility of containment rather than escalation, which helps explain the relative stability of major currencies.

Inflation Expectations and Central Bank Positioning

Energy price movements remain central to global inflation dynamics. Rising oil prices directly influence transportation costs, production expenses, and consumer prices, creating upward pressure on inflation across both advanced and emerging economies.

In the United States, recent economic data has reinforced expectations that the Federal Reserve will maintain a cautious monetary stance. Strong employment figures combined with persistent inflation risks have reduced expectations of near term interest rate cuts. This has contributed to support for the US dollar, as higher interest rate expectations typically attract capital inflows into dollar denominated assets.

The interaction between monetary policy and geopolitical risk is becoming increasingly complex. Central banks are now required to respond not only to domestic economic indicators but also to external shocks originating from energy markets and international conflicts.

In this environment, currency movements reflect not just economic fundamentals but also expectations regarding central bank behavior under conditions of sustained uncertainty.

Diverging Currency Movements and Global Economic Signals

While the US dollar remained stable, other major currencies exhibited modest weakness. The euro, yen, and British pound all recorded slight declines, reflecting broader caution in global markets.

The movement of the Chinese yuan, which briefly strengthened to its highest level in several years, adds another dimension to the global currency landscape. This reflects both domestic economic data and broader expectations regarding China’s role in global trade and energy markets.

China’s economic performance, particularly in exports and industrial activity, continues to be closely linked to global energy prices and supply chain dynamics. Strong export growth suggests resilience in external demand, even amid geopolitical uncertainty and rising production costs.

These currency movements collectively indicate that global markets are navigating a period of uneven economic signals, where regional conditions and geopolitical developments interact in complex ways.

The Interplay Between Markets and Political Uncertainty

One of the defining characteristics of the current financial environment is the speed at which geopolitical developments translate into market expectations. Currency traders and investors are increasingly sensitive to political signals, particularly those involving energy producing regions and major global powers.

However, despite heightened volatility in oil markets, the US dollar’s stability suggests that investors still view the global financial system as structurally resilient. Rather than anticipating systemic disruption, markets appear to be pricing in cyclical instability followed by eventual stabilization.

This reflects a broader pattern in which financial markets absorb geopolitical shocks through short term volatility without fully abandoning long term confidence in global economic integration.

Analysis

The stability of the US dollar amid escalating geopolitical tensions highlights a critical feature of contemporary global markets. While energy prices and regional conflicts generate significant short term volatility, currency markets remain anchored by expectations of monetary policy stability and eventual diplomatic resolution.

The current environment is characterized by three overlapping dynamics. First, geopolitical risk is elevated due to sustained conflict in the Middle East and uncertainty surrounding diplomatic negotiations. Second, energy markets are highly sensitive to supply disruptions, producing rapid price fluctuations. Third, central bank policy expectations continue to play a stabilizing role in currency valuation.

The anticipated meeting between the United States and China represents a key focal point for market sentiment, as investors look for signals of broader strategic coordination or de escalation. However, the underlying structural tensions in the global system remain unresolved.

Ultimately, the current stability of the dollar should not be interpreted as a sign of reduced risk, but rather as evidence that markets are temporarily balancing competing expectations of conflict, diplomacy, and monetary policy. In such an environment, volatility in commodities and geopolitical headlines may continue, even as major currencies appear relatively stable on the surface.

With information from Reuters.

Iranian foreign ministry spokesman Esmaeil Baqaei says Iran’s latest response to the US had asked for an end to the war, removal of the naval blockade, and release of assets.

The US had dismissed the Iranian response, Baqaei said, as it clings to its ‘unreasonable demands’.

Al Jazeera’s Rosalind Jordan and Almigdad Alruhaid report on the latest developments after US President Donald Trump rejected Iran’s response to the US peace proposal, as negotiations increasingly focus on sanctions, ceasefire guarantees, and control of the Strait of Hormuz.

Here’s TWZ’s weekly carrier tracker monitoring America’s flattop fleet, including deployed Carrier Strike Groups (CSGs) and Amphibious Ready Groups (ARGs), using publicly available open-source information. Check out last week’s map here.

More than 20 U.S. Navy warships, two carrier strike groups among them, are enforcing the blockade of Iran in the U.S. Central Command (CENTCOM) area of responsibility (AOR). To date, CENTCOM has redirected 61 commercial vessels linked to Iran and disabled at least four attempting to run the blockade.

The Navy released new images last week of both CSGs supporting the blockade. The USS George H.W. Bush was conducting flight operations in the Arabian Sea on May 6, and recently spotted with 25 F/A-18E/F Super Hornets, two E-2D Hawkeyes, and three MH-60 Seahawks of Carrier Air Wing 7 visible on the flight deck. Unlike the Abraham Lincoln CSG, also operating in the AOR, George H.W. Bush is not equipped with 5th-generation carrier-based F-35Cs.

The Gerald R. Ford CSG transited the Strait of Gibraltar westbound and is steaming toward Norfolk. The strike group has been deployed for 322 days, as of May 11, and is expected to return home in the coming weeks. The CSG departed Norfolk in June 2025 and was initially supposed to return in January, but its deployment was extended twice to support combat operations in the Caribbean and the Middle East.

Three carriers are now underway training in preparation for future deployments. The Dwight D. Eisenhower CSG, which recently completed a 15-month availability, is working up off the east coast with AIS turned on. The George Washington CSG got underway on May 10, according to ship spotters, leaving port in Yokosuka, Japan, escorted by guided-missile cruiser USS Robert Smalls. The Theodore Roosevelt CSG is “conducting advanced training to bolster strike group readiness and capability” in the Pacific Ocean.

USS Nimitz is anchored off Rio de Janeiro, Brazil, for a five-day liberty port call. Nimitz is circumnavigating South America en route to her new homeport in Norfolk. Originally slated to be decommissioned this year, her service life was recently extended into 2027.

USS Nimitz (CVN 68) Nimitz-class aircraft carrier and USNS Patuxent (T-AO-201) Henry J. Kaiser-class replenishment oiler along with a Brazilian attack submarine in Rio de Janeiro, Brazil – May 7, 2026 SRC: X-@dmdst12 pic.twitter.com/Qch7agZEDJ

— WarshipCam (@WarshipCam) May 7, 2026

Another Marine Air-Ground Task Force is set to arrive in CENTCOM in the near-term. While the Boxer ARG has not been confirmed in CENTCOM as of publication, an arrival announcement could come as soon as next week. The 11th Marine Expeditionary Unit (MEU) is comprised of a command element, a Ground Combat Element, Battalion Landing Team 3/5, an Aviation Combat Element with two squadrons, Marine Medium Tiltrotor Squadron (VMM) 163 (Reinforced) and Marine Fighter Attack Squadron (VMFA) 122, and a logistics combat element. The approximately 5,000 Marines and Sailors aboard Boxer ARG will join the Tripoli ARG, already on station in the Middle East, and significantly enhance the United States’ expeditionary capabilities in the region.

Note: Positions are general approximations. Non-deployed LHA/LHD amphibious warships are not shown.

Contact the author: ian.ellis-jones@teamrecurrent.io

US president says Tehran’s response to US peace proposal ‘unacceptable’, as the Iranian military warns it is ready if war resumes.

May 10 (UPI) — Imprisoned Iranian Nobel Peace Prize Laureate and human rights activist Narges Mohammadi has had her long prison sentence suspended and is now in a Tehran hospital, her foundation announced Sunday.

Narges, who accepted the Nobel Peace Prize in 2023 while in prison on charges of spreading “propaganda” against Iran’s Islamic regime, was granted a suspension of her 18-year sentence and transferred by ambulance from a hospital in Zanjan to Tehran Pars Hospital where she will be treated by her own medical team, the foundation said.

“On behalf of the Narges Foundation and her family, we thank the international community for their unwavering solidarity,” the group wrote in a social media post.

“However, a suspension is not enough; Narges Mohammadi requires permanent, specialized care,” they added. “We must ensure she never returns to prison to face the 18 years remaining on her sentence.

“Now is the time to demand her unconditional freedom and the dismissal of all charges. No human and women’s rights activists should ever be imprisoned for their peaceful work.”

Mohammadi’s attorney Mostafa Nili said the order suspending her sentence was issued after a determination by Iran’s Legal Medicine Organization that she requires “specialized care outside of prison under the supervision of her own medical team due to multiple illnesses.”

The renowned activist has a history of heart attacks, chest pain, high blood pressure, as well as spinal disc issues, and her detention has been denounced by supporters as a human rights violation.

in a career of human rights advocacy beginning in the 1990s, Mohammadi has been arrested by the Islamic regime 13 times, convicted her five times and sentenced to a total of 31 years in prison and 154 lashes, her backers say.

Official says US president will likely ‘apply pressure’ on China over Beijing’s purchase of Iranian oil amid war.

Donald Trump is set to arrive in Beijing on Wednesday evening to discuss the Iran war and other issues with his Chinese counterpart President Xi Jinping.

White House Principal Deputy Press Secretary Anna Kelly said an opening ceremony and meeting will be on Thursday morning, and the trip will conclude on Friday. The US plans to host the Chinese leader during a reciprocal visit later this year.

Kelly said that this week’s trip would be of “tremendous symbolic significance” and focus on “rebalancing the relationship with China and prioritising reciprocity and fairness to restore American economic independence”.

Trump’s visit, initially scheduled for earlier this year but postponed in March due to the US-Israel war on Iran, comes as the US president struggles to contain the fallout from the war, both at home and abroad.

A senior administration official told news outlets in an anonymous briefing on Sunday that Trump could “apply pressure” to China on Iran in areas such as oil sales and Tehran’s purchase of potential dual-role military-civilian goods.

US Treasury Secretary Scott Bessent last week accused China of “funding” Iran.

“Iran is the largest state sponsor of terrorism, and China has been buying 90 percent of their energy, so they are funding the largest state sponsor of terrorism,” Bessent told Fox News.

Iran closed the Strait of Hormuz in response to US-Israeli attacks, restricting passage through a key artery of global energy transport.

China has said that it wants to see the war end and hosted Iranian Foreign Minister Abbas Arraghchi last week. At the same time, Beijing has refused to recognise Washington’s “unilateral” sanctions on Iran’s oil sector.

Disruptions stemming from the war have disrupted the global economy, with Asian states that depend on imports from the Middle East especially hard hit.

Trump could also bring up China’s support for Russia during the talks, along with trade and rare earth minerals, a vital resource for the US tech sector. Business executives from aerospace manufacturer Boeing and a handful of agricultural companies are set to travel with the US delegation.

The anonymous administration official said that no change was expected regarding the US stance on Taiwan, a main sticking point in relations between Washington and Beijing. China considers the self-ruling island a part of its territory, but the US has deep security and economic commitments to Taiwan.

May 10 (UPI) — Energy Secretary Chris Wright said Sunday the Trump administration is “open” to the possibility of suspending the federal tax on gasoline sales as prices spike amid the U.S.-Israeli war against Iran.

Wright said during an appearance on NBC’s Meet the Press he and Trump are “open to all ideas” to lower energy prices, including following the lead of some U.S. states in temporarily shelving taxes on gas at the pump amid the price surge.

“All measures that can be taken to lower the price at the pump and lower the prices for Americans, this administration is in support of,” he said. “We are constantly looking for different ideas.”

Citing previous measures such as releasing oil from the U.S. strategic petroleum reserves and “revising federal regulations on summer gasoline blends to make it easier for American refineries to produce more gasoline,” Wright said the suspension of the 18-cents-per-gallon federal tax on gas is also on the table.

“We are working every day to offset this rise in prices because of a critical conflict in Iran to drive prices down, and we’re open to all such ideas,” he said.

Wright’s comments came as the average national price of a gallon of unleaded gasoline stood at $4.52 per gallon as of Sunday, according to the Automobile Association of America.

U.S. drivers have seen sharp increases in pump prices in recent weeks after Iran blocked the vital Strait of Hormuz waterway connecting Persian Gulf oil and natural gas producers with world markets.

The move came in retaliation to a wave U.S.-Israeli bombing attacks on Iran beginning Feb. 28, which Washington and Tel Aviv claim were necessary to prevent the imminent development of a nuclear weapon by Iran’s rulers.

The price of regular gas last week surged 25 cents for the second consecutive week to $4.55 — $1.40 higher than they were a year ago and marking their highest level since 2022, the AAA reported.

Crude oil prices have dipped below $100 per barrel while a fragile cease-fire between the United States and Iran has been in place and negotiations to reopen the Strait have been ongoing. But with global oil supplies tightening, upwards pressure on pump prices continues.

In a separate appearance on CBS News’ Face the Nation on Sunday, Wright refused to predict were gas prices were heading.

“I don’t know the future of gas prices,” he said while admitting that “gasoline and diesel prices are up, and they will remain up while this conflict’s in place, and then they will come back down.

“And, ultimately, they’ll come back down lower than they were before.”

South Korea says it is investigating an incident on May 4 when two unidentified objects struck a Korean-operated cargo ship in the Strait of Hormuz.
The strike caused a fire and damaged the vessel’s stern.

President Donald Trump has warned that the United States will target any Iranian trying to reach the country’s highly enriched uranium, saying that the nuclear material is under constant surveillance by the US military.

In an interview with the syndicated TV show Full Measure that aired on Sunday, Trump appeared to play down the significance of the uranium, which is believed to be buried under the rubble of nuclear facilities, remaining in Iran for now.

“We’ll get that at some point, whenever we want. We have it surveilled,” Trump said.

“I did a thing called Space Force, and they are watching. If somebody walked in, they can tell you his name, his address, the number of his badge … If anybody got near the place, we will know about it, and we’ll blow them up.”

Iran’s highly enriched uranium is one of the major sticking points between Washington and Tehran in ceasefire negotiations to end the 10-week US-Israel war on Iran.

The US wants Iran to transfer the uranium outside the country and completely shut down its nuclear programme, but Tehran has stressed that it will not give up its right to a domestic enrichment programme.

Several international media reports have said that the uranium remains under nuclear sites that the US bombed in June 2025, but Tehran has not confirmed the location of the nuclear material.

Last month, Trump announced that Iran had agreed to allow Washington to retrieve the uranium and bring it to the US – claims that Tehran quickly dismissed.

Trump told Reuters on April 17 that the US would work with Iran “at a nice leisurely pace, and go down and start excavating with big machinery” to retrieve the uranium stockpile at the sites.

“We’ll bring ⁠it back to the United States,” he added.

Iran’s Foreign Ministry spokesperson Esmaeil Baghaei denied Trump’s claim. “Enriched uranium is as sacred to us as Iranian soil and will not be transferred anywhere under any circumstances,” he said.

Iran is estimated to have more than 400kg (882lb) of uranium enriched at 60 percent purity.

Uranium enrichment is a complex process of isolating and garnering the most radioactive variety – isotope – of the element to produce nuclear fuel.

When enriched to around 90 percent purity, uranium can be used to make nuclear weapons.

In 2015, Iran agreed to a multilateral deal that saw Tehran scale back its nuclear programme and cap its uranium enrichment at 3.67 percent under strict international supervision in exchange for lifting sanctions against its economy.

Trump nixed that agreement – known as the Joint Comprehensive Plan of Action (JCPOA) – and started reimposing sanctions on Iran.

In response, Tehran – which denies seeking a nuclear weapon – began to advance its enrichment programme well beyond the limits set by the JCPOA.

Trump has argued that the ongoing conflict with Iran aims to prevent the country from acquiring a nuclear bomb.

Asked about the rising oil prices due to the war, Trump said: “We cannot let Iran have a nuclear weapon because they’re crazy.”

The average price of one gallon (3.8 litres) of petrol or gasoline in the US has risen to more than $4.50 due to supply issues linked to the Iranian blockade in the Strait of Hormuz, fuelling inflation. It was less than $3 before the war.

Despite the truce that came into effect last month, skirmishes have erupted in the Gulf over the past week as the US continues to enforce a siege on Iranian ports amid Tehran’s Hormuz blockade.

Iranian state-affiliated news outlets reported on Sunday that Iran has delivered its response to the latest US proposal to end the war to Pakistan, which is mediating the talks.

But Trump said the war is not over while reiterating his claim that Iran has been “defeated”.

“They are defeated, but that doesn’t mean they’re done,” the US president said. “We could go in for two more weeks and do every single target. We have certain targets that we wanted, and we’ve done probably 70 percent of them, but we have other targets that we could conceivably hit.”

May 10 (UPI) — Iran has communicated its response Sunday through a mediator to a proposal by the United States to end the war, its state media reports.

The Islamic Republic News Agency reported Sunday that Iran’s response has been sent through Pakistan, which has mediated talks between Iran and the United States. IRNA did not share details about what the response was.

“According to the proposed plan, negotiations at this stage will focus on the issue of ending the war in the region,” IRNA said.

The war has centered on the blockade of the Strait of Hormuz, with U.S. and Iranian forces continuing to exchange fire in the Persian Gulf region as recently as Saturday.

“We will never bow our heads before the enemy, and if talk of dialogue or negotiation arises, it does not mean surrender or retreat,” Iranian president Masoud Pezeshkian posted on social media Sunday. “Rather, the goal is to uphold the rights of the Iranian nation and to defend national interests with resolute strength.”

Mike Waltz, U.S. ambassador to the United Nations, said on Fox News on Sunday that he expects President Donald Trump to remain firm that Iran must abandon its nuclear program.

“We’ll see what the Iranians just came back with overnight in terms of their response to our very clear red line,” Waltz said.

Iran may negotiate on how it uses nuclear facilities, but it will not destroy uranium or allow it to be moved overseas, senior researcher Sultan Al-Khulaifi says.

Tehran, Iran – Skyrocketing inflation is jeopardising food security among households in conflict-hit Iran, new figures show, as diplomatic efforts to end the war launched by the United States and Israel intensify.

“The people must realistically understand the conditions and restrictions of the country,” President Masoud Pezeshkian told a group of officials who gathered on Sunday to discuss rebuilding structures damaged or destroyed in US and Israeli attacks.

“It is natural that there are difficulties and problems in this path, but through people’s cooperation and reliance on national cohesion, problems can be solved,” he was quoted as saying by state media.

Pezeshkian’s comments came a day after the Statistical Center of Iran (SCI) said Farvardin, the first month of the Persian calendar year that ended on April 20, had an inflation rate of 73.5 percent compared to the same month of the previous year. The SCI also noted that inflation was five percent higher in Farvardin compared to the previous month.

The Central Bank of Iran, which reports figures based on a different method and with different data sets, reported a slightly lower inflation rate of 67 percent for Farvardin compared to a year earlier, and a seven percent monthly increase.

Although not matched, both figures indicate a considerably accelerating pace for general inflation, which has been among the highest in the world over recent years, and is continuously making Iranians poorer.

A Tehran resident told Al Jazeera she could no longer afford some of the items she could just last month.

“And it’s not just me – I think most people in society right now can’t afford many of the things they want,” she said.

Figures from the institutions also showed that food inflation is much higher than headline inflation, meaning that people are increasingly forced to pay an expanding share of their shrinking salaries on basic items.

The SCI reported a staggering 115 percent food inflation rate for the first month of the year, compared to the same period the year before, with several staple items more than tripling in price.

Solid vegetable oil had the highest increase at 375 percent, followed by liquid cooking oil at 308 percent; imported rice at 209 percent; Iranian rice at 173 percent; and chicken at 191 percent. The lowest price hikes were for butter, at 48 percent, followed by infant formula at 71 percent and pasta at 75 percent.

Majid, a young man who works at a liver kebab shop in the capital, said the eatery has increased prices three times in recent months.

“The price of liver has doubled. When we ask suppliers why, they either say there’s a shortage or that sheep are being exported. Honestly, there’s no real oversight,” he said.

The state-run Consumers and Producers Protection Organization said in a directive sent to 31 governors across Iran on Sunday that new price hikes for cooking oil are “illegal” and “must be returned to previous levels”, without saying how officials expected that to happen amid deteriorating economic conditions.

The country’s embattled currency, the rial, has also been registering new all-time lows over the past two weeks. On Sunday afternoon, it stood at about 1.77 million against the US dollar in Tehran’s open market after marginally recovering. The rate was about 830,000 per US dollar a year ago.

Subsidies and ‘enemy plots’

The response from the government has included offering subsidies and coupons, while trying to crack down on acts such as hoarding that are perceived to be contributing to price hikes.

But this has not been accompanied by a clear macroeconomic stabilisation package as the US presses on with a naval blockade of Iranian ports.

As Iranian media reported on Sunday that Tehran had sent an official response to the text for an agreement earlier proposed by the US through mediator Pakistan, Pezeshkian said, “If there is talk of negotiations, it does not mean surrender.”

The government hands out monthly cash subsidies and electronic vouchers to buy essential goods at select stores, which together amount to less than $10 each month per person. Authorities are considering raising the amount, but a hefty budget crunch has made that more difficult.

Pezeshkian and Central Bank chief Abdolnasser Hemmati have said they are aware of the price increases, but have blamed the war that began in late February while coordinating with the judiciary to act against price gauging and hoarding.

A number of lawmakers in Iran’s hardline-dominated parliament, as well as state television hosts and outlets linked to the Islamic Revolutionary Guard Corps (IRGC), have said the price surges are suspicious. They have described the runaway prices as being part of an “economic revenge” campaign by enemies who suffered failures in the military arena.

“I want the people of Iran not to be fooled by the enemy-made price hikes,” a guest on state television’s Ofogh network said on Saturday. “Great things have happened, and great things are ahead. The economic achievements of the war are unrivalled by any other period.”

But some of the economic pain continues to be inflicted as a direct result of a near-total internet shutdown now being imposed by Iranian authorities for a 72nd day.

Numerous officials in the government, internet infrastructure firms, telecommunication companies and other state-linked organisations have emphasised that they are against a tiered internet system that is now being implemented. But they have said they bear no responsibility, since the blackout, which is expected to remain in place until the war ends, is ordered by the Supreme National Security Council.

In the meantime, the combined impact of local mismanagement, Western sanctions, blockade, war and the internet shutdown is squeezing people and businesses hard.

“The startup ecosystem of the country is dead, we are searching for a tombstone for it,” the Guild Association of Internet-based Businesses said in a statement on Saturday.

A fragile ceasefire in the US-Israel war on Iran is coming under growing strain as several Gulf countries have reported drone attacks.

Qatar said on Sunday that a drone struck a cargo ship in Qatari waters, sparking a fire, while Kuwait and the United Arab Emirates said they repelled drone attacks.

Though no Gulf country reported casualties in the latest attacks, they have put pressure on the fragile ceasefire, which took effect on April 8.

Qatar’s Ministry of Defence said the freighter had been arriving in the country’s waters from the UAE capital, Abu Dhabi, and was hit by a drone northeast of the port of Mesaieed.

“The vessel continued its journey toward Mesaieed Port after the fire was brought under control,” the ministry said.

The United Kingdom Maritime Trade Operations (UKMTO) said a bulk carrier reported being struck by an “unknown projectile”, and a small fire had been extinguished, but there were no casualties from the incident. “There is no reported environmental impact,” it said.

Kuwait’s Defence Ministry said a “number of hostile drones” were detected in the country’s airspace at dawn. In a post on X, a spokesperson said the drones were dealt with “in accordance with established procedures”, but did not specify where the drones were launched from.

The UAE Defence Ministry said two Iranian drones were intercepted.

“UAE air defence systems successfully engaged two UAVs launched from Iran,” the ministry said in a statement on X.

Ceasefire tested

The Trump administration has said the truce is still in effect, but a naval battle has been taking place in the Gulf region, with Iran restricting traffic through the Strait of Hormuz, a strategic waterway through which a fifth of traded oil transited before the war, and the United States imposing a blockade of Iranian ports.

Several attacks have been reported on ships in the Gulf and the countries in the region over the past week.

On Friday, the US struck two Iranian oil tankers, saying they were trying to breach its blockade of Iran’s ports.

On Tuesday, the UAE said it came under attack from Iranian missiles and drones for the second day in a row. Iran’s Islamic Revolutionary Guard Corps (IRGC), however, denied the claim.

The IRGC Navy on Sunday reiterated its warning that any attack on Iranian oil tankers or commercial vessels would be met with a “heavy assault” on one of the bases in the region used by US forces and enemy ships.

The spokesperson for the Iranian parliament’s foreign policy and security committee, Ebrahim Rezaei, said Tehran’s “restraint is over”.

“Any aggression against our vessels will be met with a heavy and decisive Iranian response against American vessels and bases,” Rezaei wrote on X.

“The clock is ticking against the Americans’ interests; it is to their benefit not to act foolishly and sink themselves deeper into the quagmire they have fallen into. The best course is to surrender and concede concessions. You must get used to the new regional order,” he added.

Talks to end the war

While the truce remains in effect, President Donald Trump has repeatedly threatened to resume the US bombardment if Iran does not accept a deal which includes reopening the Strait of Hormuz and rolling back its nuclear programme.

Iran is still mulling its response to a 14-point proposal by Washington, with Iranian frozen assets and war reparations among other main sticking points.

In a meeting with US Secretary of State Marc Rubio on Saturday, Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani pushed for all parties to respond to the ongoing mediation efforts and to reach an agreement for lasting peace.

Qatar’s prime minister also held a phone call with Iran’s Foreign Minister Abbas Araghchi, the Qatari foreign ministry reported on Sunday.

Sheikh Mohammed told Araghchi that Iran’s use of the Strait of Hormuz as a “pressure card” would only deepen the crisis in the Gulf, and said all parties in the conflict should respond to mediation efforts to end the war.

Reporting from Tehran, Al Jazeera’s Tohid Assadi said when it comes to diplomatic engagement, it seems that the US and Iran want the content of any negotiations to remain private.

Meanwhile, there is a mixture of different sentiments among Iranian citizens, he noted.

“Since the early days of the war, people have gathered to show their sense of nationalism and support for the political establishment,” he said.

“But we also know that there is a sense of frustration, especially when it comes to soaring prices and economic difficulties,” he added.

At a meeting on the reconstruction after damage caused by the war, President Masoud Pezeshkian said negotiations with the US on ending the war do not mean Iran is surrendering.

“The goal is to realise the rights of the Iranian people and defend national interests with authority,” he said.

Caught between rising inflation and slowing growth, the United States Federal Reserve, the European Central Bank and the Bank of England are keeping interest rates and borrowing costs steady.

That’s despite rising energy bills, fuel and food costs squeezing businesses and households worldwide.

The International Monetary Fund is warning of a global slowdown, and no one knows how long the energy shock set off by the US-Israel war on Iran will last.

The impact will be felt hardest in emerging markets and developing nations. Central banks face a tough choice: fight rising prices or support a weakening economy.

Satellite images have captured a suspected oil slick spanning dozens of square kilometres near Iran’s Kharg Island, the country’s main oil export hub. Despite fears of a disaster, environmental observers say the slick is shrinking.

US-Iran ceasefire holds as Tehran warns Washington against attacks on tankers and Israel kills 24 people in Lebanon.

Longtime Donald Trump supporter Tucker Carlson has broken with the president on some key issues, becoming one of the country’s staunchest critics of the US relationship with Israel. Carlson is engaging with voices he once criticised, like The New York Times, and his rising popularity has fueled speculation in Washington, DC that he could try to ride that momentum all the way to the White House.

Contributors:
Wajahat Ali – Cohost, Democracy-ish Podcast
Briahna Joy Gray – Host, Bad Faith Podcast
Ana Kasparian – Executive producer and host, The Young Turks
Jude Russo – Managing editor, The American Conservative

On our radar

In the United Kingdom, days after a knife attack in north London left two Jewish men in hospital, much of the country’s political and media class settled on a narrative that anti-genocide protests and the only Jewish leader in British politics, Zack Polanksi, were to blame. Meenakshi Ravi dissects the media coverage.

Greater Israel: How a fringe settler fantasy went mainstream

Israel’s settler movement has moved from the fringes to having influence over key Israeli institutions, including the media, where a constellation of voices is pushing for Israel to conquer new territory. The Listening Post‘s Tariq Nafi reports on the rapid normalisation of the idea of a “Greater Israel”.

Featuring:
Ben Reiff – Deputy editor, +972 Magazine
Maya Rosen – Assistant editor, Jewish Currents

Iran’s presence at the tournament has been shrouded in uncertainty since the US and Israel launched a war on the country in February.

Iran’s football federation has said the men’s national team will take part in the 2026 World Cup that begins in June, but demanded that joint hosts the United States, Mexico and Canada agree to its conditions amid the Middle East war.

The call on Saturday comes after Canada refused entry to the federation’s chief last month before the FIFA Congress because of his alleged links to the Islamic Revolutionary Guard Corps (IRGC), the ideological arm of Iran’s military, which it designated as a “terrorist group” in 2024.

Iran’s presence at the tournament, which will take place between June 11 and July 19, has been shrouded in uncertainty since the US and Israel launched a war on the Middle East country in February.

“We will definitely participate in the 2026 World Cup, but the hosts must take our concerns into account,” the Iranian federation said on its official website.

“We will participate in the World Cup tournament, but without any retreat from our beliefs, culture, and convictions.”

The Iranian football federation (FFIRI) President Mehdi Taj told state TV on Friday that Tehran has 10 conditions for attending the global spectacle, seeking assurances over the country’s treatment.

The conditions include visas being granted and respect for the national team staff, the team’s flag and its national anthem during the tournament, as well as demands for high security at airports, hotels and routes to the stadiums where they will play.

US Secretary of State Marco Rubio has insisted that Iran’s footballers would be welcome at the tournament.

But he warned that the US may yet bar entry to members of the Iranian delegation with ties to the IRGC, which it also designates as a terrorist organisation.

“All players and technical staff, especially those who have served their military service in the Islamic Revolutionary Guard Corps or IRGC, such as Mehdi Taremi and Ehsan Hajsafi, should be granted visas without any problems,” said Iranian football chief Taj.

FIFA chief Gianni Infantino has reiterated that Iran will play their World Cup games in the US as scheduled.

Iran, who are due to be based in Tucson, Arizona, during the World Cup, face New Zealand, Belgium and Egypt in Group G.

The Iranians open their World Cup campaign against New Zealand in Los Angeles on June 15.

“No external power can deprive Iran of its participation in a cup to which it has qualified with merit,” the Iranian federation said on Saturday.