Regional
Status of US-Iran talks uncertain as ship struck in Hormuz
Conflicting signals from the United States and Iran over the status of talks to end their five-month-old war boosted uncertainty on Tuesday, with the latest attack on shipping in the Strait of Hormuz highlighting risks to global energy flows.
U.S. President Donald Trump said the talks were under way on Monday, warning of a “last chance” for Tehran to sign a good deal, but Iran denied that negotiations were being held or planned, Reuters reported.
“They are going on right now,” Trump told reporters at an Oval Office event when asked about the state of negotiations, saying the sides were talking at the request of Iran, Saudi Arabia, the United Arab Emirates and Qatar, among others.
“This is a last chance for them (Iran) to sign a good document.”
The comments followed Trump’s weekend decision to call off “massive attacks” he said he had authorized on Iran, as talks were to be held, repeating a pattern in which he has vowed major strikes only to cancel them.
Earlier on Monday, Iranian Foreign Ministry spokesman Esmail Baghaei said no negotiations with the United States were taking place and no meetings were scheduled.
Iran had no plans to host foreign delegations or send negotiators abroad in the coming days, he said.
Baghaei added that all Iranian negotiators were in the country, except for Foreign Minister Abbas Araqchi, who was on a religious pilgrimage in Iraq. The only talks underway, he said, were discussions with Oman over management of the Strait of Hormuz.
Shipping activity in the Gulf only reinforced the ongoing stand-off since Iran all but shut off transits through the vital route for a fifth of global shipments of crude oil and natural gas before it was blockaded in the war.
One cargo vessel broadcast it had been hit by an unknown projectile near the strait off Oman’s coast, the United Kingdom Maritime Trade Operations (UKMTO) agency said.
Traffic through Hormuz remained largely slow, with three tankers and three bulk carriers among the six vessels transiting the strait on Monday, down from seven the previous day, Kpler data showed.
STOCKS RISE, OIL DOWN ON HOPES FOR RESOLUTION
Still, hopes that U.S.-Iran tensions were easing again pushed down oil prices, while major stock indexes gained on Monday.
Brent crude futures fell about 7% to around $83.77 a barrel while the Dow closed at a record high. Asian stocks and oil prices both edged higher on Tuesday.
Gulf officials and analysts say Iran is betting it can outlast Washington by turning the Middle East’s trade routes, shipping lanes and energy infrastructure into pressure points that steadily raise the cost of confrontation.
It hopes such a strategy will convince the United States and its allies that containing the crisis is more costly than accommodating Iran’s demands over the Strait of Hormuz.
“Their big advantage is that they can hurt the regional states and the global economy,” said Michael Knights of the Washington Institute.
In a post on Truth Social later on Monday, Trump called Iran’s leadership “unbelievably duplicitous,” saying they had asked for a meeting and more talks were set for the “immediate future.”
He also repeated his assertion that the U.S. Navy had total control over the Strait of Hormuz.
“‘The United States Wall of Steel!’ Nothing gets through to Iran, unless we want it to, and nothing will get through, unless a Deal, or Total Surrender, is accomplished,” he wrote.
REPEATED PATTERN
Monday’s events appeared to fit a pattern since Trump launched “Operation Epic Fury” alongside Israel more than five months ago. Trump has threatened military action several times, only to later cite diplomatic contacts as a reason to step back.
Iran, however, has publicly rejected negotiations with Washington since the collapse in early July of a memorandum of understanding both signed the previous month, aimed at ending the conflict.
Trump has yet to achieve the objectives he set out at the outset of the war: dismantling Iran’s nuclear program, curbing its ability to attack regional rivals and creating conditions for Iranians to overthrow their clerical rulers.
Repeated U.S. actions have been met by escalating Iranian responses against U.S. forces in the region, Washington’s Gulf Arab allies and shipping, each time ending with Trump stepping back.
The Hormuz dispute remains a central point of contention, with Washington saying the June memorandum required Iran to open the strategic waterway, while Tehran says the text explicitly preserved its authority over shipping traffic.
Regional
Iran executes man convicted of spying for Israel’s Mossad, judiciary says
Iran executed a man convicted of passing missile site intelligence to Israel during the 12-day war, according to the judiciary.
Iran’s judiciary-run Mizan news agency said Hossein Pedaran was hanged after the Supreme Court upheld his death sentence on charges of espionage and intelligence cooperation with Israel, Reuters reported.
It said Pedaran had provided Israel’s Mossad intelligence service with information on sensitive military sites in the central province of Isfahan, and had carried out the espionage for financial gain.
Regional
At least 15 killed in blast near mosque in Khyber Pakhtunkhwa
At least 15 people were killed and more than 50 others injured in a blast near a mosque in Kohat district of Khyber Pakhtunkhwa province on Friday, Pakistan’s Geo News reported.
Police said the blast occurred during Friday prayers and damaged the outer section of the mosque. Several police personnel were among those injured.
Khyber Pakhtunkhwa’s Inspector General of Police, Zulfiqar Hameed, said an explosives-laden vehicle struck the gate of the old Police Lines before exploding. He said the incident was followed by gunfire and another explosion at a Special Branch building.
Security forces and rescue teams were deployed at the scene, while emergency measures were declared at the district hospital to treat the injured.
There was no immediate claim of responsibility for the bombing.
Regional
China presses Iran to help rein in Houthis after Saudi appeal
China has privately asked Tehran to help rein in Yemen’s Houthis after an appeal to Beijing by Saudi Arabia following the Iran-backed group’s military blitz in the past week, according to three Iranian sources familiar with the matter, Reuters reported.
Riyadh turned to China for help after the Houthis made rapid advances along the Red Sea coast and around the Bab el-Mandeb Strait, moves that have left Saudi oil exports and shipping more exposed, the sources said.
China has publicly called for restraint, dialogue and the restoration of safe navigation, but its private message went further than the public statements, they said.
Beijing wants Iran to use its influence with the Houthis to help prevent the conflict spreading further across energy routes on which China, the world’s second-largest economy, depends.
The sources, who were briefed on the discussions and spoke on condition of anonymity, did not provide details of how the message was delivered or whether it was conveyed during a visit to China on Wednesday by Iranian Foreign Minister Abbas Araqchi.
The sources said Tehran’s response was that stability and peace in the region depend on ending the US-Israeli war on Iran.
Chinese officials did not issue any explicit threats or indicate that Beijing would seek to pressure Tehran economically if it failed to use its influence over the Houthis, the three Iranian sources said.
In response to a Reuters request for comment on this story, the Chinese foreign ministry said: “China does not wish to see regional tensions further spill over into Yemen and the Red Sea. Escalating regional instability is not in the interests of any party”.
“The sovereignty and security of all countries should be respected, and facilities vital to people’s livelihoods must not be targeted. China calls for an end to actions that further complicate the situation and urges resolving issues through dialogue and negotiation,” it said.
Iran’s foreign ministry and the Saudi government’s media office did not immediately respond to Reuters requests for comment for this article.
DANGERS OF A WIDER REGIONAL WAR
China has been Iran’s largest trading partner for more than a decade and remains the main buyer of its oil. Chinese purchases accounted for more than 80% of Iran’s seaborne oil exports in 2025, averaging about 1.4 million barrels per day, according to commodities data and analytics firm Kpler.
“Beijing is one of the few capitals that can still press Iran to rein in the Houthis,” said a senior Western diplomat in the region.
The Houthis, who emerged in the 1990s in opposition to Saudi Arabia’s Sunni religious influence in Yemen, are armed, trained and funded by Iran, according to Iranian sources and Western countries, and form part of Tehran’s anti-Western, anti-Israel “Axis of Resistance”.
Any threat by the Houthis to shipping in the Red Sea and through the Bab el-Mandeb Strait risks sharply worsening the global energy crisis since Iran started blocking the Strait of Hormuz and increasing the danger of a wider regional conflict.
With Hormuz already effectively shut, sustained Houthi attacks on vessels or ports in the Red Sea would disrupt the Middle East’s two main oil-export routes simultaneously, opening a new front in both the energy crisis and Iran’s broader confrontation with the United States.
Iran and its allies now exert pressure over both ends of the region’s key maritime network, one of the sources said, adding that “China depends on both”.
Alex Vatanka, director of the Iran Program at the Middle East Institute in Washington, said Beijing may oppose US pressure on Tehran, but its interests in the Middle East extend well beyond Iran. Roughly half of China’s oil imports come from the region, while trade between China and the Gulf Cooperation Council states totals around $300 billion a year.
“Iran can disrupt Hormuz. But at some point that leverage begins hurting the very power Tehran increasingly depends on,” Vatanka said.
CHINA’S DILEMMA
It is unclear whether Tehran will act on the concerns raised by Beijing, according to the three Iranian sources.
The relationship nevertheless carries significant economic and strategic weight for Iran as it continues to face hostilities with the US, they said.
China is among the few countries with the financial capacity to provide the investment Tehran needs to sustain its oil industry and ease pressure on its economy, battered by war and sanctions.
Beijing has also demonstrated its diplomatic influence. In 2023, China brokered the agreement that restored ties between Iran and Saudi Arabia after years of hostility.
That influence has limits, however. Critics inside Iran have complained about the relatively modest level of Chinese non-oil trade and investment since the two countries signed a 25-year cooperation pact in 2021, particularly compared with China’s growing investment commitments in Gulf Arab states.
China remains a factor Tehran cannot afford to ignore, but two of the Iranian sources said Beijing’s interests were only one consideration among many. Iran’s decisions are shaped by competing strategic, economic and political priorities, they said.
“Tehran and Beijing need each other. China is a factor Tehran cannot ignore, and Beijing wants Hormuz reopened and Red Sea shipping secured,” the Western diplomat said.
Analysts say the key test will be whether China is prepared to attach consequences to its demands. Ultimately, they say, the clearest sign of Beijing’s resolve would be evidence that it is willing to use its leverage over Tehran.
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