• A failed peace proposal over the weekend propelled oil prices and 10-year Treasury yields higher on Monday morning, with equity futures opening modestly lower.
• Markets shrugged off geopolitical risks last week as oil declined on Iran ceasefire comments, but renewed tensions reversed that trend amid global energy volatility.
• Gas prices rose nationwide, complicating inflation outlook with headline CPI above 3.5% despite easing core PCE, dimming Fed rate cut prospects.
US president says he is considering restarting naval escorts in strait of Hormuz in attempt to end Iranian blockadeMiddle East crisis – live updatesDonald Trump has said the ceasefire with Iran is on “life support” and that he is considering restarting US navy military escorts of ships through the strait of Hormuz in an attempt to end the Iranian blockade of the vital waterway.The US president dismissed Iran’s peace proposals as stupid, and denied he was under any domestic pressure to reach a deal. Continue reading...
US president calls Iranian response ‘totally unacceptable’ while Tehran says it will retaliate against any new US strikes or foreign warships in strait of HormuzTrump calls Iran’s response to peace plan ‘totally unacceptable’ as ceasefire fraysThe US parameters for nuclear talks reportedly included a moratorium on Iranian nuclear enrichment for up to 20 years; the transfer overseas, possibly to the US, of Iran’s stockpile of highly enriched uranium (HEU), which could be used to make nuclear warheads; and the dismantling of Iranian nuclear facilities.According to the Wall Street Journal, the Iranian counter-proposal suggested a shorter moratorium, the export of part of the HEU stockpile and the dilution of the rest, and refusal to accept the dismantling of facilities. Continue reading...
• US President Donald Trump dismissed Iran's response to a US peace proposal as 'totally unacceptable' on Monday, escalating tensions amid ongoing Middle East conflict.
• Tehran warned of new attacks in retaliation, as reported by Asia News Network, heightening fears of prolonged disruptions in the Strait of Hormuz.
• The rejection triggered market volatility across Asia, with investors seeking safe-haven assets amid potential impacts on regional energy security.
• US President Donald Trump publicly denounced Iran's reply to a US peace proposal as 'totally unacceptable' amid stalled negotiations in recent weeks.
• Iran submitted its 'war-ending' response through Pakistan mediators, while a fragile ceasefire holds despite intermittent Gulf flare-ups and reported drone strikes.
• The exchange escalates tensions, with Iran dismissing Trump's rejection as 'irrelevant' and warning countries enforcing US sanctions of 'difficulties' transiting the Strait of Hormuz.
• The United States is monitoring Iran's reply to a renewed peace proposal following mutual strikes, as reported by Fox News White House correspondent Aishah Hasnie.
• President Trump pursues a diplomatic deal amid Middle East tensions, with former Iran special representative Brian Hook praising the administration's 'disciplined deterrence' strategy.
• The developments signal potential de-escalation in the conflict, highlighting Trump's foreign policy focus on security and negotiation.
• US President Donald Trump announced on May 7, 2026, that negotiations with Iran have progressed significantly in the last 24 hours, predicting a quick deal to formally end the ongoing war.
• The US peace proposal, under review by Tehran, calls for a one-page memorandum to halt hostilities, reopen the Strait of Hormuz, ease sanctions, and limit Iran's nuclear activities, though it omits missile program curbs and proxy support restrictions.
• Iranian officials responded cautiously, with a foreign ministry spokesperson pledging an official reply and lawmaker Ebrahim Rezaei calling the offer unrealistic and US-biased; Trump paused a naval mission to reopen shipping lanes amid Saudi opposition.
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...
Iran says the ‘ball is in the United States’ court’ as Trump says he is likely to reject new proposal from TehranDonald Trump said on Saturday he was going to review a new peace proposal from Tehran but cast doubt over its prospects, saying Iran had not yet “paid a big enough price”.Two semiofficial Iranian news outlets, Tasnim and Fars, believed to be close to Iran’s paramilitary Revolutionary Guard, said Iran had sent the US a new 14-point proposal via Pakistan. Continue reading...
• Pakistan has received an amended peace proposal from Iran as it serves as a crucial backchannel mediator in ongoing US-Iran negotiations, reflecting diplomatic efforts to resolve escalating tensions.
• The development indicates continued high-level diplomatic engagement despite stalled formal negotiations and previous ceasefire attempts, with Pakistan playing a strategic intermediary role in the Middle East crisis.
• Successful mediation efforts could have significant implications for global markets, crude oil prices, and regional stability, directly affecting India's energy security and economic growth prospects.
