Peace

Israeli attacks killed at least 31 people in southern Lebanon on Friday, including a rescue worker, Lebanon’s official National News Agency said.

VATICAN CITY — The Vatican raised the “need to work tirelessly in favor of peace” in talks Thursday with U.S. Secretary of State Marco Rubio, who came to Rome on a fence-mending visit after President Trump’s criticisms of Pope Leo XIV over the Iran war.

Both the Vatican and the U.S. State Department stressed that Rubio’s meetings with Leo and the Vatican’s top diplomat underscored strong bilateral ties. Those relations, though, have been strained over Trump’s repeated broadsides about Leo’s calls for peace and dialogue to end the U.S.-Israeli war.

Rubio, a practicing Catholic, has often been called on to tone down or explain Trump’s harsh rhetoric. He had an audience first with Leo, which was complicated at the last minute by Trump’s latest criticism of the Chicago-born pope. During a 2½-hour visit, Rubio then met with the Vatican secretary of state, Cardinal Pietro Parolin, who on the eve of his visit had strongly defended Leo and criticized Trump’s attacks.

“Attacking him like that or criticizing what he does seems a bit strange to me, to say the least,” Parolin said Wednesday.

After the meetings, the U.S. State Department said that Rubio and Parolin discussed “ongoing humanitarian efforts in the Western Hemisphere and efforts to achieve a durable peace in the Middle East. The discussion reflected the enduring partnership between the United States and the Holy See in advancing religious freedom.”

In a separate statement about the audience with Leo, U.S. State Department spokesperson Tommy Pigott said that the two discussed the situation in the Middle East and the Western Hemisphere. “The meeting underscored the strong relationship between the United States and the Holy See and their shared commitment to promoting peace and human dignity,” he said.

The Vatican, for its part, said that during Rubio’s meetings with both Leo and Parolin, “the shared commitment to fostering good bilateral relations between the Holy See and the United States of America was reaffirmed.”

It said the two sides exchanged views on the current events “with particular attention to countries marked by war, political tensions, and difficult humanitarian situations, as well as on the need to work tirelessly in favor of peace.”

Rubio also has meetings Friday with Italian Premier Giorgia Meloni and Foreign Minister Antonio Tajani. Those meetings might not be much easier for Washington’s top diplomat, given both have strongly defended Leo against Trump’s attacks and have criticized the Iran war as illegal — drawing the president’s ire.

A mission to smooth ties

The tensions began when Trump lashed out at Leo on social media last month, saying the pope was soft on crime and terrorism for comments about the administration’s immigration policies and deportations as well as the Iran war. Leo then said that God doesn’t listen to the prayers of those who wage war.

Later, Trump posted a social media image appearing to liken himself to Jesus Christ, which was deleted after a backlash. He has refused to apologize to Leo and has sought to explain away the post by saying that he thought the image was a representation of him as a doctor.

Rubio said that Trump’s recent criticisms of Leo were rooted in his opposition to Iran potentially obtaining a nuclear weapon, which he said could be used against millions of Catholics and other Christians.

Leo has never said Iran should obtain nuclear weapons and that the Catholic Church “for years has spoken out against all nuclear weapons, so there is no doubt there.”

“The mission of the church is to preach the Gospel, to preach peace. If someone wants to criticize me for announcing the Gospel, let him do it with the truth,” Leo said late Tuesday, after Trump again accused him of being “OK” with Iran having a nuclear weapon.

By Thursday, tensions seemed to have eased.

Rubio gave Leo a small crystal football paperweight. He acknowledged Leo’s known allegiance to the Chicago White Sox, saying “you’re a baseball guy,” but noted that the football had the seal of the State Department on it.

“What to get someone who has everything?” Rubio joked as he gave Leo the paperweight.

Leo, for his part, gave Rubio a pen apparently made of olive wood — “olive being of course the plant of peace,” Leo said — with his coat of arms on it and a picture book of Vatican artworks.

Trump also has criticized Meloni and other NATO allies for a lack of support for the Iran war, recently announcing plans to withdraw thousands of American troops from Germany in the coming months.

Vatican seen as willing to have dialogue

Giampiero Gramaglia, former head of the ANSA news agency and its onetime Washington correspondent, said that he didn’t expect much to come out of Rubio’s visit for Italian or Vatican relations. He, and other Italian commentators, believe Rubio instead was looking to smooth over relations with the pope for his own political ambitions, as well as the upcoming midterm U.S. congressional elections and 2028 presidential race.

“I doubt Rubio has the role of conciliator for Trump,” he told Italy’s Foreign Press Association. “I have the perception that Rubio’s mission is more about himself” and his political ambitions as a prominent Catholic Republican.

The Rev. Antonio Spadaro, undersecretary in the Vatican’s culture office, said that Rubio’s mission wasn’t to “convert” the pope to Trump’s side. Rather, Washington “has come to acknowledge — implicitly but legibly — that (Leo’s) voice carries weight in the world that cannot simply be dismissed.”

“The situation created by President Trump’s remarks required a high-level, direct intervention, conducted in the proper language of diplomacy: a semantic corrective to a narrative of frontal conflict with the church,” he wrote in an essay this week.

Cuba is also on the agenda

Rubio said that topics other than the Iran war were on the agenda for the Vatican visit, including Cuba. The Holy See is particularly concerned about the Trump administration’s threats of potential military action there following its January ouster of Venezuelan President Nicolás Maduro.

Trump has said frequently that Cuba could be “next,” and even suggested that once the Iran war is over, naval assets deployed in the Middle East could return to the United States by way of Cuba.

Rubio is the son of Cuban immigrants and a longtime Cuba hawk.

“We gave Cuba $6 million of humanitarian aid, but obviously they won’t let us distribute it,” Rubio said. “We distributed it through the church. We’d like to do more.”

Winfield and Lee write for the Associated Press. Lee reported from Washington.

May 6 (UPI) — Global oil prices fell sharply and financial markets rallied Wednesday after U.S. President Donald Trump paused a military operation to reopen the Hormuz Strait to commercial shipping to give advanced peace talks with Iran a chance to deliver “a complete and final deal.”

Falls in Brent crude of more than $10 a barrel to $99, American crude by $13 to $92 a barrel and rallies in Asian stock markets overnight that fed into Europe when bourses opened there failed to feed through to U.S. gas prices, which jumped 5 cents a gallon to their highest level of the war.

AAA motor club figures showed a national average of $4.54 for a gallon of petrol and $5.67 for diesel, meaning drivers were paying 53% and 51% more than before the war started on Feb. 28, with the caveat that fuel price adjustments normally lag crude oil price movements by several days.

The White House believes a draft one-page, 14-point memorandum of understanding to end the war and create a structure for more in-depth nuclear talks could succeed in breaking the deadlock, two U.S. officials and two other sources said.

An Iranian foreign ministry spokesman confirmed to CNBC that Iran was in receipt of the U.S. proposal and was “evaluating it.”

The Trump administration anticipates Iran will give its response with regard to the most critical elements of the plan in the next two days and although nothing has been finalized it was being seen as significant because it was the closest the sides had been to a deal since the beginning of the war.

However, Trump also appeared ambivalent, saying Wednesday it was “perhaps” too big of a stretch to believe Iran would take the deal and threatening to order the U.S. military to restart its airborne offensive against the country if it didn’t.

Analysts said investor confidence was boosted mainly by the fact the cease-fire was holding and signs that the economy was nowhere near as badly affected by the war as feared.

“This helped oil prices to come back down again and ease fears about a renewed escalation, with investors a bit more hopeful that an extended stagflationary shock would be avoided,” Deutsche Bank wrote in a note.

It added that investor confidence was also bolstered by new U.S. economic data showing among other positive indicators, that job vacancies declined less than anticipated in March, saying the numbers “cemented the case that the conflict’s wider economic impact was still fairly muted.”

“This helped oil prices to come back down again and ease fears about a renewed escalation, with investors a bit more hopeful that an extended stagflationary shock would be avoided,” they added.

Hopes were also riding on the possibility China would prevail on visiting Iranian foreign minister Abbas Araghchi to persuade Iran to uphold the current truce with the United States, so as not to throw a wrench into Trump’s visit to Beijing on May 14, the first by any U.S. president in almost a decade.

China is one of Iran’s largest customers for its oil exports.

May 3 (UPI) — Iran said on Sunday that it is reviewing the United States’ response to its most recent peace proposal, a 14-point plan that was reviewed by President Donald Trump on Saturday night.

The response was delivered to Iranian negotiators on Sunday, Iranian state media outlets PressTV and Tasnim reported, with officials clarifying some reports on the plan they said have been incorrect.

The 14-point plan is entirely focused on bringing an end to the two-month-old conflict, with no provisions about nuclear materials or other weapons, Esmaeil Baghaei, spokesperson for Iran’s foreign ministry, said in an interview.

When asked about Iran’s new plan on Saturday, Trump expressed doubt that it would meet U.S. requirements but said that he would be reviewing its exact language last night.

“The plan we have presented is centered on ending the war,” Baghaei said. “There are absolutely no details regarding the country’s nuclear issues in this proposal.”

The basics of Iran’s proposal are focused on ending hostilities and then opening a 30-day period for intense negotiation of other issues, including the withdrawal of U.S. military forces from areas around the country, lifting the U.S. naval blockade and ending the war on all fronts, including in Lebanon, Tasnim reported.

But Baghaei said that reports of a suspension of nuclear activities or U.S.-Iran cooperation on clearing mines from the Strait of Hormuz are not true.

“These are among the things that I believe are fabricated by the imagination of some media outlets,” Baghaei said. “We are not currently engaged in any negotiations over the nuclear issue and decisions about the future will be made in due course.”

Iranian officials said that the U.S. proposal had included a two-month cease-fire, which Iran countered with a 30-day period to resolve issues and to actually end the war.

US president says he is considering the 14-point peace plan, but warns strikes could resume if Tehran ‘misbehaves’.

United States President Donald Trump has said he is reviewing Iran’s 14-point proposal to end his war on the country, while warning that Washington could restart air strikes if Tehran “misbehaves”.

Speaking to reporters in Florida before boarding Air Force One on Saturday, Trump confirmed that he had been briefed on the “concept of the deal”.

Despite the diplomatic opening, the US president struck a characteristically blunt tone regarding the possibility of renewed hostilities, which have been paused since the announcement of a ceasefire between the sides on April 7.

“If they do something bad, there is a possibility it could happen,” Trump said when asked if strikes would resume.

Trump added that the US was “doing very well” and claimed that Iran was desperate for a settlement because the country had been “decimated” by months of conflict and a naval blockade.

In a post on Truth Social later, Trump said it was difficult to imagine that the Iranian proposal would be acceptable as Tehran had “not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years.”

Tehran’s 14-point plan reportedly calls for the lifting of the US naval blockade, war reparations, and the release of all frozen assets.

It also seeks a 30-day window to finalise the terms of their peace, a timeline at odds with Washington’s preference for a longer transition.

The diplomatic push comes amid a fragile three-week truce that has put a pause on the US-Israel war on Iran, which began in late February.

Despite the ceasefire, the Islamic Revolutionary Guard Corps (IRGC) said on Saturday that it remains on “full standby” for a return to hostilities, citing the US’s lack of commitment to previous treaties.

Tensions have been further stoked by Trump’s recent characterisation of the US naval blockade as a “very profitable business”.

Tehran’s Ministry of Foreign Affairs seized on the remarks, labelling them a “damning admission of piracy”.

The impasse is further complicated by technical obstacles to reopening the Strait of Hormuz, including the presence of Iranian sea mines, and a growing rift with NATO allies following Trump’s decision to withdraw 5,000 US troops from Germany.

May 2 (UPI) — An Iranian general said more fighting with the United States is “possible” after President Donald Trump rejected the most recent peace plan offered by Iran.

The United States and Iran are now in a fragile cease-fire.

“Evidence has shown that the United States is not committed to any promises or agreements,” said Iranian Brig. Gen. Mohammad Jafar Asadi, spokesman for Iran’s military headquarters, Iranian news agencies reported.

“Surprise measures are planned for the enemy, beyond their imagination,” Asadi said.

President Donald Trump, speaking at an event in West Palm Beach, Fla., said Friday that the United States is “better off” without making a peace agreement.

“Frankly, maybe we’re better off not making a deal at all. Do you want to know the truth? Because we can’t let this thing go on,” CNN reported he said. “Been going on too long.”

Trump had told CNN before leaving for Florida that he wasn’t satisfied with Iran’s latest peace offer.

Trump said he doesn’t think Iran can make a deal, saying, “They’ve made strides, but I’m not sure if they ever get there,” saying there is “tremendous discord” among Iranian leaders.

The president also said Friday that his options, as it relates to Iran, are making a deal or to “blast the hell out of them and finish them forever,” CNN reported.

Iran is holding to its plan to continue to control the Strait of Hormuz.

“With its dominance and control over nearly [1,300 miles] of Iran’s coastline in the Persian Gulf and the Strait of Hormuz, the IRGC [Revolutionary Guards] Navy will make this water area a source of livelihood and power for the dear Iranian people and a source of security and prosperity for the region,” the Iranian Tasnim news agency reported Saturday.

Trump has repeatedly demanded the strait be fully open.

Iranian Deputy Foreign Minister Kazem Gharibabadi said Iran believes in interest-based diplomacy, Al Jazeera reported.

“Iran has presented its plan to Pakistan as a mediator with the aim of permanently ending the imposed war, and now the ball is in America’s court to choose the path of diplomacy or to continue the confrontational approach,” Al Jazeera reported that Gharibabadi said. “Iran is ready for both paths in order to ensure its national interests and security, and in any case, it will always maintain its pessimism and distrust of America and its honesty in the path of diplomacy,” he added.

April 29 (UPI) — The United States has sanctioned 35 entities and individuals accused of overseeing a shadow-banking network that moved tens of billions of dollars for Iran, as the Trump administration flexes Washington’s financial might amid a stalemate in peace negotiations with Tehran.

The sanctions announced Tuesday come as U.S.-Iran peace negotiations came to a halt last week after Tehran said it would not participate in talks until the United States lifted its blockade of sea-based trade to the Middle Eastern nation.

Those blacklisted by the Treasury include several private companies known as rahbars, which manage thousands of overseas companies used by Iranian banks cut off from the international financial system to execute payments for Iranian trade.

According to the Treasury, these rahbar companies coordinate with Iranian exchange houses and front companies to conduct international trade on behalf of the Islamic Revolutionary Guard Corps, Iran’s Armed Forces General Staff, the National Iranian Oil Company and other sanctioned entities.

“By dismantling these financial channels, we advance the administration’s policy in the conflict with Iran and underscore our commitment to imposing maximum pressure on Iran,” State Department spokesman Thomas Pigott said in a statement.

The punitive action was part of what the Treasury calls Operation Economic Fury, a branded escalation of President Donald Trump‘s broader maximum-pressure campaign against Iran.

Coinciding with the sanctions on Tuesday, the Treasury’s Office of Foreign Assets Control issued an alert to financial institutions over the risks they face for doing business with so-called teapot oil refineries in China, primarily in Shandong Province, that import and refine Iranian crude oil.

According to the alert, China is the largest purchaser of Iranian oil, and the Treasury has designated multiple small China-based refineries since March of last year.

“The United States will further disrupt illicit funding streams that finance Iran’s malign activities,” Pigott said.

“We will not relent in our efforts to deny Iran and its proxies the resources they use to threaten U.S. interests and regional stability.”

Trump first employed the maximum-pressure campaign strategy to coerce Iran into negotiations over its nuclear program in 2018 after unilaterally withdrawing the United States from a landmark multinational accord that sought to prevent Tehran from obtaining a nuclear weapon.

Iran then breached its commitments under the deal, enriching uranium up to 60%, far exceeding the accord’s 3.67% but below weapons-grade levels.

Trump restored the maximum-pressure campaign after returning to office in 2025, and the United States bombed three major Iranian nuclear facilities that June.

The United States and Israel have since escalated their pressure campaign, attacking Iran in strikes that triggered a war now halted by a fragile cease-fire to permit peace talks.

Iran has imposed restrictions on energy trade through the Strait of Hormuz, prompting the United States to impose a blockade of Iran’s ports in response to what it describes as Tehran holding a major share of the world’s energy supplies hostage.

Dylan Carter, a contestant on Season 24 of “The Voice,” died in a car accident on Saturday.

According to the NBC affiliate serving the Lowcountry region of South Carolina, the musician died in a single-vehicle crash on a rural road in Colleton County. He was 24.

Country music legend Reba McEntire, who was Carter’s coach on “The Voice,” posted a tribute on social media Monday morning, writing, “We will miss Dylan so much. He was a brilliant, kind and talented young man who brought a huge ray of sunshine to The Voice. Rest in peace, my dear friend.”

Moncks Corner Mayor Thomas Hamilton Jr. also memorialized the Lowcountry singer, writing on Facebook that his family was “heartbroken” to hear about the accident.

“As a gifted singer, he frequently entertained our community with his performances at Town events,” read the post. “His kindness and charm earned him immense respect, and his absence will be deeply felt.

“To the loved ones and acquaintances of Dylan, we offer our sincerest condolences during this difficult period. The Town of Moncks Corner, its Council, and entire staff extend their deepest sympathies. He was much more to our family than an entertainer he was our friend and we are deeply saddened.”

Carter was slated to perform Monday night at the town of Moncks Corner’s “Music on Main” event. The organizer posted that the event had been canceled, and the comments section was filled with an outpouring of shock and grief.

Carter competed on Season 24 of “The Voice” in 2023. During his blind audition, he sang Whitney Houston’s “I Look to You,” which he dedicated to his mother, who had died the year before. During his audition, all four judges turned their chairs for the contestant, with Gwen Stefani hitting her red button during the song’s first verse.

“You only get four chairs if you really move the room,” said judge Niall Horan, who called his performance spectacular.

McEntire was choked up and said she could feel and hear Carter’s emotion while he sang. “That’s when you know you’ve got a great song and a great singer,” she said. “When it touches your heart.”

“When I saw y’all turn around, I saw my mom,” Carter told the judges. “She passed back in October and she wanted me to sing it at her funeral, so I did it — I tried, but I couldn’t make it through it. This was the best second chance. I just made her so proud.”

After Carter was eliminated from the competition series, he posted on Instagram, reflecting on his experience: “Well last night did not go as we all were hoping, but I am proud to say that I went out there on that stage and gave it MY ALL.”

Carter admitted that he felt defeated when he was eliminated, adding, “but it did not take me long to realize that I actually didn’t lose anything, instead I gained EVERYTHING!”

“I came to The Voice unsure of myself, unsure of my future, and still grieving the loss of my mom. I left LA with confidence in myself and my future, with a sure purpose as to why I was put on this Earth, and with peace of mind moving on from my mom’s death. I’ve been afraid of moving on from my mom’s death because I thought moving on meant forgetting her. Boy was I wrong!!! I’m moving forward with her, as she shines through me! All she ever wanted was for me to find myself, to find my voice, and for me to be happy…. I left LA with all of that plus more!!! I even gained all of you guys.”

The South Carolina Highway Patrol is investigating the accident.

Brent crude rises more than 2 percent after Washington and Tehran fail to hold second round of talks in Pakistan.

Oil prices have climbed higher amid stalled peace talks between the United States and Iran.

Brent crude rose more than 2 percent on Sunday after hopes for a second round of ceasefire negotiations between Washington and Tehran unravelled over the weekend.

After easing slightly, Brent, the primary benchmark for global prices, stood at $106.99 as of 1:30 GMT.

Stock markets in Asia shrugged off the impasse to open higher on Monday, with Japan’s benchmark Nikkei 225 and South Korea’s KOSPI gaining 0.9 percent and 1.5 percent, respectively, in morning trading.

US President Donald Trump on Saturday cancelled a planned trip to Pakistan by his envoys, Steve Witkoff and Jared Kushner, after Iranian Minister of Foreign Affairs Abbas Araghchi departed Islamabad before any direct engagement could take place between the sides.

Araghchi arrived in Russia’s Saint Petersburg on Monday for talks with Russian President Vladimir Putin and other officials as Tehran seeks a way out of the diplomatic impasse.

Araghchi’s trip, which follows a whistle-stop visit to Oman on Sunday, comes as uncertainty hangs over the fragile ceasefire between Washington and Tehran.

Trump announced an extension to their two-week truce last week, without specifying a deadline for reaching a deal to end the war.

As US and Iranian negotiators struggle to break the deadlock, Tehran’s threats against commercial shipping in the Strait of Hormuz have reduced traffic to a trickle, paralysing a large portion of the world’s supply of oil and natural gas.

On Saturday, 19 commercial vessels transited the strait, which normally carries about one-fifth of global oil and natural gas supplies, according to maritime intelligence platform Windward.

Before the US and Israel launched their war on Iran in late February, the waterway saw an average of 129 daily transits, according to the United Nations Trade and Development.

As part of promoting the Chinese Global Security Initiative (GSI) as an alternative to the Western approach, Chinese President Xi Jinping proposed a four-point initiative for peace and stability in the Middle East in mid-April 2026, following escalating tensions in the Middle East and the US-Israeli war against Iran. This initiative aims to offer Chinese wisdom for conflict resolution based on sovereignty and development, in contrast to what China considers destabilizing Western alliances. President Xi Jinping discussed and presented this initiative in mid-April 2026 during his meeting with Khalid bin Mohammed Al Nahyan, Crown Prince of Abu Dhabi, outlining a comprehensive four-point initiative aimed at preserving and promoting peace and stability in the Middle East. This Chinese initiative comes within the context of Beijing’s efforts to strengthen its role as a diplomatic mediator following the escalation of tensions in the region. Chinese President Xi Jinping’s four peace initiatives for 2026 are the commitment to the principle of peaceful coexistence, supporting Gulf and Middle Eastern countries in improving their relations, and building a comprehensive, cooperative, and sustainable security architecture in the region based on the principle that the countries of the region are neighbors and cannot be geographically relocated. (Commitment to the principle of national sovereignty), through China’s support for and respect of the sovereignty and territorial integrity of states and its rejection of interference in their internal affairs, while emphasizing the protection of the security of states, their people, infrastructure, and institutions. (China’s full commitment to the principle of the rule of international law), by adhering to the basic norms of international relations and supporting the international system centered on the United Nations, to prevent a return to the law of the jungle. (Reconciling development and security by affirming that security is a prerequisite for development and working to create a favorable environment for sustainable economic development to ensure long-term stability.)

These Chinese moves come as part of China’s efforts to present its Global Security Initiative (GSI) as an alternative to the Western approach to conflict resolution. They are considered a direct response from China to Western and American policies. These Chinese peace proposals emerged in the context of Beijing’s criticism of the American blockade on Iranian ports, which it described as dangerous and irresponsible. By presenting a Chinese security model, China seeks to position itself as a partner committed to peace and dialogue, rather than the American military alliances that Beijing considers a threat to global security. Furthermore, this initiative aims to reinforce the Beijing Declaration, as China seeks to solidify its role as a mediator (following Saudi-Iranian and Palestinian faction mediation efforts) through a formal initiative.

Thus, the Chinese initiative emerged as a direct response to the escalating tensions in the Gulf region and Iran and as a countermeasure to the American blockade. The Chinese Foreign Ministry described the American blockade of Iranian ports and the Strait of Hormuz as dangerous and irresponsible, threatening the security of navigation in the Strait of Hormuz. Especially after the failure of US negotiations with Iran and US President Donald Trump’s announcement of a naval blockade on Iranian ports on April 12, 2026, following the collapse of peace talks in Islamabad, Pakistan, China stepped in as an international mediator. Consequently, China is attempting to promote its own model by presenting itself as a peace partner focused on economic dialogue, in contrast to Western military alliances, which Beijing considers a threat to global security.

In this context, China is trying to leverage its past diplomatic successes to solidify its role in promoting the Beijing Declaration and to play a mediating role in resolving conflicts, such as the Saudi-Iranian mediation. Based on the 2023 Beijing Agreement to normalize relations, China seeks to strengthen its role in the Gulf region. Furthermore, China is working to solidify the Beijing Declaration of July 2024, which aimed to end the Palestinian division, achieve reconciliation between Palestinian factions, and form a national unity government, as a model for its mediation in resolving complex conflicts. With the strengthening of the Beijing Declaration, the new proposal aims to transform the Beijing Declaration from a factional agreement into an official, internationally supported initiative to solidify China’s role as a key mediator in Palestine as well.

These Chinese moves are part of a broader Chinese strategy to promote the Global Security Initiative (GSI) as an alternative to the Western approach, as outlined by Chinese President Xi Jinping for the period 2022-2026. China emphasizes its rejection of the Cold War mentality, criticizing Washington’s military alliances, such as the trilateral AUKUS security pact between the US, Australia, and the UK, and alliances in the Middle East. China also emphasizes the concept of indivisible security, promoting the idea that a nation’s security cannot be achieved at the expense of other nations’ security. China seeks influence through mediation, aiming to position itself as an alternative superpower capable of addressing the root causes of conflicts through development, rather than through the threat of force.

As the clock ticks down on a shaky ceasefire that could end Wednesday, Pakistan is attempting to host last-ditch negotiations to stave-off a new round of fighting between the U.S. and Iran. Meanwhile, the Strait of Hormuz remains closed after being shut down again by Iran this weekend as negotiations for a peace deal took a nose-dive. The closure occurred around the same time Iran reportedly fired on several ships in the Strait on Saturday. A U.S. attack on and seizure of a cargo ship that was supposedly running the blockade in the Gulf of Oman on Sunday has also resulted in Iran making new threats of retaliation. All this represents a dramatic deterioration in U.S.-Iran relations compared to just a few days ago.

Pakistan has cordoned off parts of Islamabad in anticipation of the pending talks. However, it remains unclear if Iran will send a delegation to meet the U.S. negotiating party of Vice President JD Vance, envoy Steve Witkoff and Jared Kushner, President Donald Trump’s son-in-law. The meeting is tentatively set for Tuesday.

U.S. President Donald Trump on Monday insisted the talks are still on despite Iranian suggestions otherwise.

“We’re supposed to have the talks,” Trump told The New York Post Monday morning in a brief interview, brushing aside doubts about whether negotiations would fall apart. “So I would assume at this point nobody’s playing games.”

Trump’s comment to the New York Post came after Iranians claimed they would not take part in any new talks.

“So far, we have no plans to participate in the next round of negotiations,” Foreign Ministry spokesperson Esmaeil Baghaei told reporters on Monday. “The behavior of the United States does not indicate seriousness in pursuing a diplomatic process.”

Baghaei added that no decision has been made on how or when negotiations would resume. The Foreign Ministry spokesman also pushed back on Trump’s claims that Iran agreed to give up its highly enriched uranium (HEU).

“It is strictly off the agenda,” Baghaei proclaimed “Iran’s definitive stance is to keep all of its nuclear achievements on its own soil.”

A senior Iranian source told Reuters the continuation of the U.S. blockade on Iranian ports was undermining the prospect of peace talks, and that Tehran’s “defensive capabilities,” including ​its missile program, were not open to negotiation.

However, a Pakistani security source told the news outlet that Pakistan’s key mediator, Field Marshal Asim Munir, informed Trump that the ⁠blockade was an obstacle to talks, and that Trump had replied that he would consider the advice.

One big reason for confusion about Iran’s attendance at the Islamabad talks could be a growing schism between the Islamic Revolutionary Guard Corps and more moderate elements of Iran’s current leadership. 

“There’s a power struggle underway in Iran—and even within the delegation that went to Islamabad for the first round of talks, which offered a sense of the country’s internal tensions,” according to The Economist. 

“Their arguments were so ferocious that Pakistani mediators are reported to have spent as much time refereeing among the Iranians as engaging the Americans.”

One visible sign of this power struggle may have come Saturday, when several ships were reportedly struck by the IRGC in the Strait of Hormuz. The IRGC could have been acting independently, however we don’t know for sure. Thawed relations with the U.S. run counter to the IRGC’s core mission and beliefs, but also could spell degradation in their power within Iran. The idea that the IRGC could end up taking control over Iran, at least to a degree, is a possible outcome TWZ highlighted before the war broke out.

Iran claims its reluctance to negotiate stems in large measure from U.S. Central Command’s interdiction of the Iranian-owned cargo ship M/V Touska on Sunday for what it says was a violation of the U.S. blockade on Iranian ports. CENTCOM said the Arleigh Burke class guided-missile destroyer USS Spruance intercepted the vessel on Sunday as it transited the north Arabian Sea at 17 knots enroute to Bandar Abbas, Iran.

“After Touska’s crew failed to comply with repeated warnings over a six-hour period, Spruance directed the vessel to evacuate its engine room,” CENTCOM stated. “Spruance disabled Touska’s propulsion by firing several rounds from the destroyer’s 5-inch MK 45 Gun into Touska’s engine room. U.S. Marines from the 31st Marine Expeditionary Unit later boarded the non-compliant vessel, which remains in U.S. custody.”

The ship had recently visited China, The Wall Street Journal reported.

Early Monday morning, CENTCOM released a video of Marines fast-roping aboard the Touska. The video shows an MH-60R Seahawk helicopter taking off from the Spruance. It cuts to a scene of Marines repelling from a Seahawk onto the deck of the ship.

CENTCOM on Monday had no update on how long the ship would be held, what cargo was discovered on board or the fate of the crew.

The command previously released video of the Spruance firing three rounds on the cargo ship from its Mk-45 gun. The projectiles have a range of up to 20 nautical miles and can be fired at a rate of between 16 and 20 rounds per minute.

While the Navy used the Mk-45 to take down Houthi drones in 2024, it’s unclear when a 5-inch gun was last used against another vessel. We have reached out to the Navy for more details.

European stock markets slipped on Monday as investor sentiment weakened amid renewed tensions between the United States and Iran. The downturn followed the seizure of an Iranian cargo ship by US forces and Tehran’s vow of retaliation, raising fears that a fragile ceasefire nearing its expiry may collapse.

The situation has been further complicated by Iran’s rejection of fresh peace talks and ongoing uncertainty over maritime security in the Strait of Hormuz, a critical global energy route.

Market Reaction

The pan-European STOXX 600 index declined by 0.8%, reflecting broad-based caution across financial markets. Major indices also moved lower, with Germany’s DAX down 1% and France’s CAC 40 falling 0.9%.

Losses were concentrated in sectors sensitive to geopolitical risk. Travel and leisure stocks led declines, followed by banking and automobile shares, which also came under pressure. In contrast, energy stocks rose as oil prices surged, reflecting concerns about supply disruptions.

Oil and Energy Impact

Crude oil prices jumped sharply, with Brent crude rising more than 5% to around $95 a barrel. The increase reflects heightened fears of disruption in the Strait of Hormuz, through which a significant portion of global energy trade passes.

Energy-dependent European economies remain particularly sensitive to price volatility, adding to investor caution across broader markets.

Geopolitical Tensions

Market sentiment shifted sharply from the previous week’s optimism, when easing signals from the Strait of Hormuz had briefly boosted equities. That optimism faded quickly after renewed maritime incidents and political escalation.

The United States and Iran continue to exchange accusations over ceasefire violations, while diplomatic efforts appear increasingly uncertain. The rejection of fresh negotiations by Iran and continued US pressure have added to concerns that the conflict could intensify further.

Outlook

Financial markets remain closely tied to developments in the Middle East. With the ceasefire approaching its expiration and no clear diplomatic breakthrough in sight, volatility is expected to persist.

Investors are likely to remain cautious until there is greater clarity on both maritime security in the Strait of Hormuz and the future of US–Iran relations.

With information from Reuters.

April 20 (UPI) — Iran said that it carried out drone strikes on Monday against U.S. military vessels blockading its ports after the U.S. Navy attacked an Iranian-flagged container ship in the Gulf of Oman.

The state-run Tasnim News Agency said the Iranian military “launched drone strikes toward several U.S. military vessels in the area” in retaliation for the boarding and seizure of the Touska on Sunday night while it was en route to Iran from China.

“We caution that the Armed Forces of the Islamic Republic of Iran will soon respond to and retaliate for this act of piracy and armed aggression by the US military,” Khatam al-Anbia Central Headquarters, the Iranian military’s central command, said in a statement

Khatam al-Anbia Central Headquarters said the Iranian Armed Forces had held off from delivering “a decisive response” to “blatant aggression by U.S. terrorist commandos” due to concerns for the safety of family members of the ship’s crew who were on board the Touska.

“Iran’s operational action was delayed in order to protect their lives and security, which were in constant danger,” the statement added.

The U.S. military did not immediately comment on Iran’s claim it conducted drone strikes.

However, U.S. Central Command posted video of the guided-missile destroyer USS Spruance warning the Touska to “vacate your engine room” because it was about to open fire and, some time later, night-vision footage of helicopter-borne U.S. Marines from USS Tripoli conducting an amphibious assault operation to take over the vessel.

CENTCOM said the Spruance intercepted Touska as it was steaming toward the Iranian port of Bandar Abbas, issuing multiple warnings over a six hour period that it was in violation of the U.S. blockade. When it refused to stop, the Spruance fired several rounds from its 5-inch gun hitting the engine room and disabling the vessel.

U.S. Marines from the 31st Marine Expeditionary Unit later boarded the vessel and took control of the vessel, which remains in U.S. custody.

CENTCOM said U.S. forces had ordered 25 commercial vessels to turn back, or return to an Iranian port, in the week since the United States implemented its blockade of Iranian ports on April 13.

However, Sunday was the first time that the U.S. military is known to have opened fire on merchant shipping since the war started Feb. 28.

The escalation came after a rollercoaster weekend that began with Tehran declaring that the Strait of Hormuz was fully open to all commercial shipping for the remainder of the 14-day cease-fire currently in place, which is due to expire on Wednesday.

The move was welcomed by the United States, but the administration of U.S. President Trump made it clear its blockade would remain in place. That prompted Tehran to accuse the United States of violating the cease-fire and by Saturday it declared the strait closed again and at least one tanker was fired on by two Iranian gunboats as it attempted to enter the sea lane.

The developments have cast doubt over peace talks, which are due to resume in Islamabad, Pakistan, later Monday or first thing Tuesday.

Trump said in a post on his Truth Social platform that U.S. negotiators would arrive in the Pakistani capital on Monday night, with the White House later confirming that Vice President JD Vance would again head up the U.S. delegation, picking up from where he left off from in an initial round of talks on April 11 that failed to produce a breakthrough.

Tehran said Monday it had not yet decided whether it would attend.

“As of now, while I am speaking to you, we do not have a plan for the next round of negotiations, and no decision has been taken in this regard,” Foreign Ministry spokesperson Esmaeil Baqaei said at a press conference in Tehran.

Referencing the ongoing U.S. blockade and seizure of the container ship, Baqaei accused the United States of actions that “are in no way indicative of seriousness in pursuing a diplomatic process.”

However, the comments do not mean Iran will not show in Islamabad.

The Iranian side only confirmed participation in the first round of negotiations at the last minute.

Global oil prices, which fell sharply on Friday after Iran said the Hormuz Strait was open, rose again over the weekend but were holding steady in late morning trade in London where Brent crude for June delivery contract was changing hands at $95.24 a barrel and West Texas Intermediate for May delivery was changing hands at $88.89 a barrel.

Brent crude rises more than 7 percent as Washington and Tehran offer conflicting accounts on ceasefire negotiations.

Oil prices have risen sharply following attacks on commercial vessels in the Strait of Hormuz and conflicting messages about the prospect of renewed negotiations between the United States and Iran.

Brent crude futures, the primary benchmark for global prices, jumped more than 7 percent in Asia on Monday as the outlook for peace between Washington and Tehran darkened.

Prices eased somewhat later in the morning, with the benchmark at $94.69 a barrel as of 02:05 GMT, up from just under $90.40 on Friday.

The latest price surge came after US President Donald Trump said US forces seized an Iranian-flagged cargo vessel that had attempted to evade the US blockade of Iran’s ports.

Trump’s announcement followed reports by the United Kingdom Maritime Trade Operations (UKMTO) Centre over the weekend that two vessels came under attack while transiting the strait.

Iranian gunboats fired on a tanker, while an “unknown projectile” struck a container ship, according to the UKMTO.

After declaring the strait “completely open” on Friday, Tehran reversed course less than 24 hours later, citing the ongoing US blockade.

Earlier on Sunday, Trump said that a US delegation would travel to Pakistan on Monday to hold a second round of ceasefire talks with Iranian officials.

Iranian state news outlet IRNA later reported that Tehran would not participate in the talks, citing the US blockade and Washington’s “excessive demands” and “unrealistic expectations”.

A two-week ceasefire between Washington and Tehran is set to expire on Wednesday if the sides cannot agree on an extension.

An initial round of talks held in Islamabad earlier this month broke down without any agreement between the sides.

Iran’s effective closure of the strait, which usually carries about one-fifth of global oil and natural gas supplies, has driven a surge in fuel prices worldwide, forcing governments to tap emergency supplies and roll out energy-saving measures.

Nineteen vessels crossed the strait on Saturday, up from 10 the previous day, but far below the historical average of 138 daily transits, according to the UKMTO.

Asia’s main stock markets opened higher on Monday despite the dimming prospects of de-escalation.

Japan’s Nikkei 225 rose more than 1 percent in morning trading, while South Korea’s KOSPI gained about 1.3 percent.

Hong Kong’s Hang Seng Index rose about 0.5 percent, while the SSE Composite Index in Shanghai gained more than 0.4 percent.

European stocks were mostly steady on Wednesday as investors weighed signals from Washington that a diplomatic breakthrough in the Iran war could be imminent.

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The pan-European Stoxx 600 had ticked down 0.1%, Germany’s Dax edged 0.11% higher and the FTSE 100 climbed 0.11%. The CAC 40 in France fell by a slightly greater margin, at 0.65%.

US President Donald Trump said fresh talks between Washington and Tehran “could be happening over the next two days” in Islamabad, signalling a possible diplomatic breakthrough, and added that the war was “very close to over” — despite continued uncertainty over key sticking points in negotiations.

Asian markets were broadly higher.

Japan’s Nikkei 225 gained 0.5%, South Korea’s Kospi jumped 3.0% and Hong Kong’s Hang Seng edged up 0.7%.

The Shanghai Composite added 0.2%, while Australia’s S&P/ASX 200 was little changed, up less than 0.1%.

On Wall Street, the S&P 500 added 1.2% to its gains from the previous day, and the index at the heart of many 401(k) accounts is now just 0.2% below its record set in January.

The Dow Jones Industrial Average rose 317 points, or 0.7%, while the Nasdaq Composite climbed 2%.

On Wednesday, benchmark US crude inched up by 1 cent to $91.29 a barrel.

Brent crude added 48 cents to $95.27, or less than 1%, after falling 4.6% the previous day. While that is still above its roughly $70 level from before the war began in late February, it remains well below the peak of $119.

Lower oil prices help reduce costs for businesses across the economy. However, some analysts noted that the war is still ongoing, warning that the optimism may prove unfounded.

“The counterintuitive decline in crude appears driven by growing hopes that a second round of peace talks between Washington and Tehran could soon materialise, after the first attempt fizzled out,” said Tim Waterer, chief market analyst at KCM Trade.

“Traders are clearly choosing to price in the possibility of de-escalation rather than the immediate reality of restricted flows,” he added.

Asian nations depend on access to the Strait of Hormuz, a narrow waterway that is the main route for crude oil produced in the Persian Gulf to reach customers worldwide. Disruptions there have kept oil off the global market, driving up prices.

Global inflation this year is expected to accelerate to 4.4% from 4.1% in 2025, according to the International Monetary Fund, which had previously forecast a slowdown to 3.8%.

The IMF also downgraded its forecast for global economic growth to 3.1% this year, from 3.3% projected in January.

Overall, the S&P 500 rose 81.14 points to 6,967.38. The Dow Jones Industrial Average gained 317.74 points to 48,535.99, while the Nasdaq Composite climbed 455.35 points to 23,639.08.

In the bond market, Treasury yields eased as falling oil prices reduced inflationary pressure. The yield on the 10-year Treasury fell to 4.25% from 4.30% late Monday.

In currency trading, the US dollar edged up to 159.03 Japanese yen from 158.79 yen. The euro stood at $1.1780, down from $1.1797.

US stocks climbed to the brink of a record high on Tuesday, while oil prices eased as hopes grew that Washington and Tehran may resume talks to end their war.

The S&P 500 rose 1.2%, leaving it just 0.2% below its January peak. The Dow Jones Industrial Average gained 0.7%, while the Nasdaq Composite jumped 2%, tracking broader global market gains.

Investors are betting that renewed diplomacy could prevent a prolonged surge in oil prices and inflation, allowing focus to return to corporate earnings.

Brent crude for June delivery fell 4.6% to $94.79, down from recent highs, though still above pre-war levels.

However, volatility remains high, with markets sensitive to developments around the Strait of Hormuz, a key route for global oil supply.