President Trump said the war with Iran is “very close to over” as mediators, led by Pakistan, pressed to arrange further talks and a possible extension of the fragile ceasefire. Indirect U.S.-Iran communications continue, but U.S. officials say no new agreement has been reached yet.
Diplomacy and mediation
– Pakistan has taken a central role in trying to restart negotiations. Prime Minister Shehbaz Sharif traveled to Saudi Arabia and met Crown Prince Mohammed bin Salman to brief him on Islamabad’s efforts and to assure Saudi support. Pakistan’s chief of army staff, Field Marshal Syed Asim Munir, flew to Tehran carrying messages from mediators; Pakistani officials described his trip as part of ongoing mediation efforts.
– Iran acknowledged indirect communications with the U.S. and said discussions have included the possible release of billions in frozen Iranian assets held abroad. Tehran called asset release a right rather than a concession, but Iranian spokesmen said no final conclusions have been reached.
– President Trump said leaders of Israel and Lebanon would speak Thursday as Washington tries to ease hostilities after the two countries’ envoys held historic direct talks in Washington. The White House welcomed any end to fighting between Israel and Hezbollah but said such an outcome is separate from U.S.-Iran talks.
Ceasefire, negotiations and the blockade
– U.S. officials confirmed indirect, ongoing engagement with Iran aimed at extending a two-week ceasefire that was set to expire soon, though no agreement had been finalized. Senior U.S. officials said the U.S. had not formally agreed to an extension.
– The U.S. implemented a maritime blockade of Iranian ports and positioned forces in the Arabian Sea and Gulf of Oman. CENTCOM said the blockade had been “fully implemented” and warned that any vessels attempting to breach it would be boarded, interdicted and seized. U.S. officials said no ships made it past U.S. forces in the initial 48 hours; CENTCOM reported turning around multiple vessels.
– Ship-tracking data and Iranian state media, however, showed some sanctioned or Iran-linked vessels transiting the Strait of Hormuz and entering the Persian Gulf amid conflicting claims over enforcement and compliance.
Military posture and threats
– Israel said it remained prepared to strike Iran again if necessary and that it was prepared for any scenario should fighting resume after the ceasefire. The Israeli military said it had been in a ceasefire with Iran for several days in line with political directives.
– Iran issued stern warnings. Mohsen Rezaei, named a military adviser by Iran’s supreme leader, warned U.S. ships in the Strait of Hormuz could be sunk. Iran’s central military command warned it could extend disruptions to other waterways, including the Bab el-Mandeb and the Red Sea, if the U.S. blockade endangered Iranian shipping.
– The U.S. Navy reported interdictions in the Strait of Hormuz, with a U.S. destroyer said to have redirected two oil tankers attempting to leave Iranian ports.
Humanitarian and regional toll
– Israeli strikes in southern Lebanon continued. Lebanese authorities reported that at least 2,167 people had been killed and more than 7,000 wounded in Lebanon since Israel ramped up attacks in March, displacing more than one million people.
– Paramedic groups said four Lebanese rescue workers were killed and six wounded in three consecutive strikes in Mayfadoun, near Nabatiyeh. Lebanese officials condemned the attacks as violations of international law, while the Israeli military said it was looking into the incidents.
– The U.N. allocated $12 million from its Global Emergency Fund to support humanitarian response in Iran amid reports of thousands of civilian deaths and damaged infrastructure.
Regional diplomacy and economic measures
– The U.S. Treasury issued sanctions targeting an alleged oil-smuggling network tied to the family of a former Iranian security official and others linked to an “oil-for-gold” scheme involving Venezuela. OFAC designated more than two dozen people, companies and vessels, blocking their U.S. property and interests.
– Treasury Secretary Scott Bessent said the U.S. would not renew waivers that let some buyers purchase Russian and Iranian oil without sanction penalties, noting the waivers applied to oil already at sea before a cutoff date.
– Bessent also sought to reassure on energy markets, calling high gas prices “short-term volatility for long-term gain.” He expressed optimism that gas prices could fall below $4 per gallon during summer months if the straits reopened and production resumed.
Global reactions and positions
– China’s foreign minister told Iran that reopening the Strait of Hormuz was a unanimous demand from the international community and stressed freedom of navigation and safety. President Trump said China agreed not to send weapons to Iran — a claim Beijing has not independently confirmed in these reports.
– NATO and European officials reacted to U.S. positions and rhetoric. Former NATO chief Jens Stoltenberg said NATO could be preserved despite sharp criticism from President Trump and suggested Europe could increase its contribution within NATO.
– U.K. officials voiced anger at the economic fallout. U.K. Chancellor Rachel Reeves expressed frustration at the impact of the conflict on Britain and criticized the U.S. for entering the war without a clear exit plan.
Economic markets
– U.S. stock markets rallied as hopes for extended diplomacy and lower energy disruptions pushed investor sentiment higher. The S&P 500 and Nasdaq hit record highs, reversing earlier losses tied to the war. Oil prices remained volatile but were below earlier peaks.
– The market rally was partly attributed to optimism after President Trump’s comment that the war was “very close to over” and the prospect of further talks.
Other developments
– The USS Gerald R. Ford recorded its longest post-Vietnam deployment — nearly 10 months — participating in operations in the Caribbean and then shifting to the Middle East ahead of the conflict with Iran.
– FIFA President Gianni Infantino reiterated that Iran would “for sure” participate in the World Cup despite the war, while Iran explored options to play some matches outside the U.S. after security concerns were raised.
– Domestic political tensions persisted: President Trump continued to criticize Pope Leo and NATO on social media, and former national security adviser John Bolton questioned the clarity of U.S. objectives in the conflict.
Upcoming events
– Pakistan’s diplomatic push continued, with Sharif traveling to regional capitals to secure support for a new round of talks. U.S. and Iranian interlocutors exchanged messages through Pakistani intermediaries.
– The U.S. Department of Defense planned a news conference with Defense Secretary Pete Hegseth and Gen. Dan Caine to update on the Iran war.
– The immediate future hinges on whether indirect talks can produce terms to extend the ceasefire or a more lasting agreement, and on whether regional actors can prevent escalation at sea and on the ground.
