Iran Deal

The US and Iran have offered conflicting messages over the likelihood of a deal being reached imminentlyMorning and welcome to the Guardian’s continuing coverage of the crisis in the Middle East.The US and Iran have offered conflicting messages over the state of negotiations to end the war, with Donald Trump signalling the talks were “very good” and a deal “very possible”.News of a possible deal followed Trump’s abrupt U-turn on a US military operation to guide ships out of the strait of Hormuz, dubbed “Project Freedom”. Trump said the decision to pause the mission on Tuesday – two days after it was launched – was to give peace a chance, but NBC reported that it was suspended after Saudi Arabia refused to allow the US military to use its bases and airspace to carry out the operation. US officials told the American broadcaster that Gulf allies were caught off guard by the sudden announcement of Project Freedom, and that it had angered the leadership in Saudi Arabia.The Iranian president, Masoud Pezeshkian, told his French counterpart, Emmanuel Macron, that the US’s behaviour had “deviated the path of diplomacy towards threats, pressure and sanctions” and that Tehran could not trust Washington. In a statement carried by the Iranian state-run Press TV, Pezeshkian said Iran had entered into dialogue with the US twice and “on both occasions, military aggression against Iran took place concurrently with the negotiations. Such behaviour is effectively like ‘stabbing from behind’”.Iran has denied any involvement in damage to a South Korean-operated vessel in the strait of Hormuz, which suffered an explosion and fire on Monday. Trump blamed the incident on an Iranian attack, while South Korea’s foreign ministry said the cause of the fire would only be confirmed after the vessel is inspected. The Iran embassy in Seoul issued a statement this morning rejecting the allegations, saying safe passage through the waterway requires strict adherence to Iranian regulations.The damage and destruction inflicted on US military sites across the Middle East during the war is far larger than what has been publicly acknowledged by the Trump administration or previously reported, according to analysis by the Washington Post. Reviewing satellite imagery, the newspaper found Iranian airstrikes have damaged or destroyed at least 228 US structures or pieces of equipment, including hangars, barracks, fuel depots, aircraft and key radar, communications and air defence equipment. The US Central Command declined to comment on the report.In Lebanon, where a ceasefire has demonstrably failed to stop the fighting between Israel and Hezbollah, three people were killed this morning in Israeli strikes on Nabatieh south of the country, according to the official Lebanese National News Agency. The Israeli military said one of its soldiers was seriously injured by an explosive-laden Hezbollah drone in southern Lebanon yesterday. It did not say where the attack took place.In Gaza, where another ceasefire appears to be fraying, an Israeli airstrike has killed Azzam Khalil al-Hayya, the son of Hamas political bureau leader and chief negotiator Khalil al-Hayya, according to senior Hamas official Basim Naim. Azzam succumbed to his injuries this morning after being struck in an Israeli attack last night, Reuters reported. He is the fourth son of Hamas’s exiled Gaza chief to have been killed in Israeli attacks. Continue reading...

• President Trump warned Iran on Wednesday of 'higher level' military strikes if it refuses a peace deal, while deeming direct talks in Pakistan 'too soon' amid reported negotiation progress to end the war. • The U.S. paused the brief Project Freedom mission to guide ships through the Strait of Hormuz after Iranian attacks on vessels and U.S. Gulf allies resumed, marking the first in nearly a month. • Secretary of State Marco Rubio accused Iran of holding the global economy hostage by threatening ships, laying sea mines, and imposing tolls on the vital waterway, calling the upcoming U.N. resolution a key test.

President issues fresh ultimatum despite US claims that progress has been made in stalled negotiations with TehranMiddle East crisis – live updatesThe US president, Donald Trump, has issued a fresh ultimatum, telling Iran to accept a deal to end the war in the Middle East or face a new wave of US bombing “at a much higher level and intensity than it was before”.The social media announcement on Wednesday was the latest in a rapid series of dramatic and often contradictory changes in policy and came amid reports the US was claiming progress in stalled negotiations between Tehran and Washington. Continue reading...

• Indian equity indices surged sharply on May 6, 2026, with Sensex gaining 940.73 points (1.22%) to close at 77,958.52 and Nifty rising 298.15 points (1.24%) to 24,330.95, driven by optimism over potential US-Iran peace negotiations and declining crude oil prices. • Banking stocks led the rally following the Union Cabinet's approval of an emergency credit guarantee programme worth Rs 15,800 crore to support businesses facing liquidity stress, with Hero MotoCorp climbing 2.6% and Mahindra & Mahindra advancing 3.1% on strong quarterly earnings. • Broader market indices also gained traction, with Nifty smallcap100 and midcap100 rising 0.9% and 1.1% respectively, though FMCG stocks declined amid easing geopolitical tensions in West Asia that had previously pushed Brent crude to $115 per barrel.

US president briefly pauses ‘Project Freedom’ operation escorting ships through strait of HormuzBusiness live – latest updatesOil prices have eased and stock markets rallied as Donald Trump touted “great progress” towards a “final agreement” with Iran, while momentum in AI-driven trading accelerated.The US president said he would briefly pause his “Project Freedom” operation escorting ships through the strait of Hormuz, which carries about a fifth of the global oil supplies and has been blockaded by Iran since late February, triggering an energy crisis. Continue reading...

US president pauses ‘Project Freedom’ to work on ‘final agreement’ with Tehran; stocks also ride high on AI euphoriaGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Asian stock markets hit record highs, following in Wall Street’s footsteps, and oil prices retreated after Donald Trump hailed “great progress” towards a “final agreement” with Tehran.on the request of Pakistan and other Countries, the tremendous Military Success that we have had during the Campaign against the Country of Iran and, additionally, the fact that Great Progress has been made toward a Complete and Final Agreement with Representatives of Iran”.Investors bought and continue to add to positioning in the 2026 winners. There has been some buying in S&P 500 materials stocks, but it’s tech that continues to attract the bulk of flows, notably in Apple and the memory plays.9am BST: Eurozone services and composite PMIs for April9.30am BST: UK services and composite PMIs for April1.15pm BST: US ADP employment change for April Continue reading...

• President Trump announced Tuesday evening that he is pausing 'Project Freedom,' the operation to escort ships through the Strait of Hormuz, citing 'great progress' toward a complete agreement with Iran and requests from Pakistan and other countries. • Trump stated the pause would last 'for a short period of time to see whether or not the Agreement can be finalized and signed,' while maintaining the US naval blockade of Iranian ports remains in effect. • The move represents a significant shift in Trump's confrontational posture toward Iran after months of military escalation, though Secretary of State Marco Rubio continued criticizing Iran for effectively closing the strategic oil passageway.