President Trump declared the war with Iran “very close to over” as mediators led by Pakistan pressed to arrange further talks and explore extending a fragile ceasefire. Indirect U.S.-Iran communications continue, though U.S. officials say no new agreement has been finalized.
Mediation and diplomacy
Pakistan has taken a central role in efforts to restart negotiations. Prime Minister Shehbaz Sharif traveled to Saudi Arabia to brief Crown Prince Mohammed bin Salman on Islamabad’s mediation and to seek Riyadh’s support. Pakistan’s army chief, Field Marshal Syed Asim Munir, flew to Tehran carrying messages from mediators as part of ongoing shuttle diplomacy.
Iran confirmed indirect talks with the United States and said discussions have included the possible release of billions in frozen Iranian assets held abroad. Tehran described an asset release as a right rather than a concession but said no final decisions had been reached.
The White House said leaders of Israel and Lebanon would speak as Washington tried to ease hostilities following historic direct talks between their envoys in Washington. The White House welcomed any end to fighting between Israel and Hezbollah but stressed that a cessation of that fighting is separate from U.S.-Iran negotiations.
Ceasefire, blockade and maritime enforcement
U.S. officials confirmed indirect engagement with Iran aimed at extending a two-week ceasefire that was set to expire, but stressed no formal agreement to extend it had been signed. Meanwhile, 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 vessels attempting to breach it would be boarded, interdicted and seized. U.S. officials reported no ships made it past U.S. forces in the initial 48 hours and said multiple vessels were turned around.
At the same time, ship-tracking data and Iranian state media showed some sanctioned or Iran-linked vessels transiting the Strait of Hormuz and entering the Persian Gulf, creating conflicting claims over enforcement and compliance.
Military posture and threats
Israel said it remained prepared to strike Iran again if necessary and said it was ready for any scenario should fighting resume after the ceasefire. The Israeli military said it had been observing a ceasefire for several days in line with political directives.
Iran issued stern warnings. Mohsen Rezaei, named a military adviser by Iran’s supreme leader, threatened that U.S. ships in the Strait of Hormuz could be sunk. Iran’s central military command warned it might expand disruptions to other waterways, including 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 and said a U.S. destroyer had redirected two oil tankers attempting to leave Iranian ports.
Humanitarian and regional toll
Israeli strikes in southern Lebanon continued amid a growing humanitarian toll. Lebanese authorities reported at least 2,167 people killed and more than 7,000 wounded in Lebanon since Israeli attacks increased in March, with more than one million people displaced. Paramedic groups said four Lebanese rescue workers were killed and six wounded in consecutive strikes near Nabatiyeh; Lebanese officials called the attacks violations of international law, while the Israeli military said it was investigating.
The United Nations allocated $12 million from its Global Emergency Fund to support humanitarian response in Iran amid reports of thousands of civilian deaths and damaged infrastructure.
Economic measures and sanctions
The U.S. Treasury issued sanctions against an alleged oil-smuggling network tied to the family of a former Iranian security official and others connected to an oil-for-gold scheme involving Venezuela. OFAC designated more than two dozen individuals, companies and vessels, blocking their U.S. property and interests.
Treasury Secretary Scott Bessent said the U.S. would not renew waivers that had allowed some buyers to purchase Russian and Iranian oil without sanctions penalties, noting the waivers applied to oil already at sea before a cutoff date. Bessent sought to reassure markets on energy, describing high gas prices as short-term volatility and expressing optimism that prices could fall below $4 per gallon in summer if the straits reopened and production resumed.
Global reactions and political fallout
China’s foreign minister urged reopening the Strait of Hormuz 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. policy and rhetoric, with former NATO chief Jens Stoltenberg saying the alliance could be preserved despite sharp U.S. criticism and urging greater European burden sharing. U.K. officials expressed anger over economic fallout; U.K. Chancellor Rachel Reeves criticized the U.S. for entering the war without a clear exit plan.
Markets and other developments
U.S. stock markets rallied as hopes for extended diplomacy and reduced energy disruptions boosted investor sentiment. The S&P 500 and Nasdaq reached record highs, reversing earlier war-related losses. Oil prices remained volatile but below prior peaks, with some of the market optimism attributed to the president’s comments that the war was nearing its end.
The USS Gerald R. Ford completed its longest post-Vietnam deployment, nearly 10 months, participating in operations in the Caribbean before shifting to the Middle East ahead of the conflict. FIFA President Gianni Infantino said Iran would still participate in the World Cup, while Iran explored playing some matches outside the U.S. after security concerns were raised.
Domestic political tensions continued, with President Trump criticizing Pope Leo and NATO on social media, and former national security adviser John Bolton questioning the clarity of U.S. objectives in the conflict.
What comes next
Pakistan’s diplomatic push is ongoing, with Sharif traveling to regional capitals to secure support for a new round of talks. U.S. and Iranian interlocutors are exchanging messages through Pakistani intermediaries. The U.S. Department of Defense planned a news conference to update on the situation. The immediate future depends on whether indirect talks can produce terms to extend the ceasefire or reach a more durable agreement, and on whether regional actors can prevent further escalation at sea and on the ground.