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Trump to lift Syria sanctions, signs $600 billion deal with Saudi Arabia

Trump has not scheduled a stop in Israel, raising questions about where the close ally stands in Washington’s priorities as Trump presses Israeli Prime Minister Benjamin Netanyahu to agree to a new ceasefire deal in the 19-month-old Gaza war.

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President Donald Trump kicked off his trip to the Gulf on Tuesday with a surprise announcement that the United States will lift long-standing sanctions on Syria, and a $600 billion commitment from Saudi Arabia to invest in the U.S, Reuters reported.

The U.S. agreed to sell Saudi Arabia an arms package worth nearly $142 billion, according to the White House which called it the largest “defense cooperation agreement” Washington has ever done.

The end of sanctions on Syria would be a huge boost for a country that has been shattered by more than a decade of civil war. Rebels led by current President Ahmed al-Sharaa toppled President Bashar al-Assad last December.

Speaking at an investment forum in Riyadh at the start of a deals-focused trip that also brought a flurry of diplomacy, Trump said he was acting on a request to scrap the sanctions by Saudi Arabia’s de facto ruler, Prince Mohammed bin Salman.

“Oh what I do for the crown prince,” Trump said, drawing laughs from the audience. He said the sanctions had served an important function but that it was now time for the country to move forward.

The move represents a major U.S. policy shift. The U.S. declared Syria a state sponsor of terrorism in 1979, added sanctions in 2004 and imposed further sanctions after the civil war broke out in 2011.

Syrian Foreign Minister Asaad al-Shibani said on X that the planned move marked a “new start” in Syria’s path to reconstruction. Trump has agreed to briefly greet Sharaa in Saudi Arabia on Wednesday, a White House official said.

Trump and the Saudi crown prince signed an agreement covering energy, defense, mining and other areas. Trump has sought to strengthen relations with the Saudis to improve regional ties with Israel and act as a bulwark against Iran.

The agreement covers deals with more than a dozen U.S. defense companies for areas including air and missile defense, air force and space, maritime security and communications, a White House fact sheet said.

It was not clear whether the deal included Lockheed F-35 jets, which sources say have been discussed. The Saudi prince said the total package could reach $1 trillion when further agreements are reached in the months ahead.

Saudi Arabia is one of the largest customers for U.S. arms, and the two countries have maintained strong ties for decades based on an arrangement in which the kingdom delivers oil and the superpower provides security.

But relations were strained after the 2018 murder of U.S.-based Saudi journalist Jamal Khashoggi by Saudi agents in Istanbul caused a global uproar. U.S. intelligence concluded that bin Salman approved an operation to capture or kill Khashoggi, a prominent critic, but the Saudi government has denied any involvement.

Trump did not mention the incident during his visit and called bin Salman an “incredible man.”

“I really believe we like each other a lot,” Trump said.

Trump will go on from Riyadh to Qatar on Wednesday and the United Arab Emirates on Thursday in a trip that is focused on investment rather than security matters in the Middle East, read the report.

Several U.S. business leaders attended the event, including Elon Musk, the Tesla chief who has led a government-downsizing effort for Trump in Washington; OpenAI CEO Sam Altman; BlackRock CEO Larry Fink and Blackstone CEO Stephen Schwarzman.

Trump was shown speaking with several Saudi officials, including sovereign wealth fund governor Yasir al-Rumayyan, Aramco CEO Amin Nasser and investment minister Khalid al-Falih as he viewed models for the kingdom’s flashy, multi-billion-dollar development projects.

Bin Salman has focused on diversifying the Saudi economy in a major reform program dubbed Vision 2030 that includes “Giga-projects” such as NEOM, a futuristic city the size of Belgium. Oil generated 62% of Saudi government revenue last year.

The kingdom has scaled back some of its ambitions as rising costs and falling oil prices weigh.

Trump has not scheduled a stop in Israel, raising questions about where the close ally stands in Washington’s priorities as Trump presses Israeli Prime Minister Benjamin Netanyahu to agree to a new ceasefire deal in the 19-month-old Gaza war.

Israel’s military operations against Hamas in Gaza and Hezbollah in Lebanon, and its assassinations of the two Iran-allied groups’ leaders, have at the same time given Trump more leverage by weakening Tehran and its regional allies, Reuters reported.

Trump said it was his “fervent hope” that Saudi Arabia would soon normalize relations with Israel, following other Arab states that did so during his first 2017-2021 term. “But you’ll do it in your own time,” he said.

Netanyahu’s opposition to the creation of a Palestinian state makes progress with the Saudis unlikely, sources told Reuters.

Trump on Tuesday called Iran “the most destructive force” in the Middle East and warned that the U.S. will never allow it to obtain a nuclear weapon. He said he was willing to strike a new deal with the Islamic Republic but only if its leaders changed course.

“I want to make a deal with Iran,” he said. “But if Iran’s leadership rejects this olive branch… we will have no choice but to inflict massive maximum pressure.”

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Israel strikes Tehran as Trump says US negotiating to end war

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Israel struck the Iranian capital Tehran on Wednesday, Israeli military and Iranian media said, as President Donald Trump said the ​U.S. was making progress in its efforts to negotiate an end to the war, with reports of a 15-point plan sent to Tehran.

The Israeli Defense ‌Forces said in a Telegram post it had launched a wave of strikes targeting infrastructure across Tehran. The semi-official Iranian SNN News Agency said the strikes hit a residential area in the city, with rescuers searching the rubble, Reuters reported.

Kuwait and Saudi Arabia said on Wednesday they had repelled fresh drone attacks, without stating where they originated. Drones targeted a fuel tank at Kuwait International Airport, ​causing a fire but no casualties, Kuwait’s Civil Aviation Authority said.

Iran’s Revolutionary Guards said it had launched a new wave of attacks against locations ​in Israel including Tel Aviv and Kiryat Shmona, as well as U.S. bases in Kuwait, Jordan and Bahrain, Iranian state media ⁠reported.

Trump said on Tuesday the U.S. was in “negotiations” to end the war, which has already killed thousands and created the worst energy shock in history, leading ​to global fuel shortages and roiling markets.

Stocks rose and oil prices fell on Wednesday on reports the U.S. is seeking a month-long ceasefire and had sent a 15-point ​plan to Iran for discussion, raising hopes for a resumption of oil exports out of the Persian Gulf.

Trump told reporters at the White House the U.S. was talking to “the right people” in Iran to end hostilities, adding the Iranians wanted to reach a deal very badly.

Iran’s powerful parliament speaker Mohammad Baqer Qalibaf on Monday dismissed such reports as “fake news.”

15 POINT PLAN SENT TO IRAN

The New ​York Times reported on Tuesday that Washington sent Iran a 15-point plan to end the war in the Middle East. Israel’s Channel 12, quoting three sources, ​said the U.S. was seeking a month-long ceasefire to discuss the 15-point plan.

A source familiar with the matter confirmed that the U.S. had sent a plan to Iran but provided no ‌further details.

The ⁠Israeli media outlet said the plan would include the dismantling of Iran’s nuclear programme, ceasing support for proxy groups, such as Lebanon’s Hezbollah, and the reopening of the Strait of Hormuz.

The U.S. and Israel launched strikes on Iran on February 28 after saying they had failed to make enough headway in talks aimed at ending Iran’s nuclear programme, although mediator Oman said significant progress had been made.

Since then, Iran has attacked countries that host U.S. bases, struck Gulf energy infrastructure and effectively closed the Strait ​of Hormuz, conduit for a fifth of ​the world’s oil and liquefied natural ⁠gas.

Iran has told the United Nations Security Council and the International Maritime Organization that “non-hostile vessels” may transit the Strait of Hormuz if they coordinate with Iranian authorities, according to a note seen by Reuters on Tuesday.

The effective closure of the waterway, ​where 20% of the world’s oil and gas normally transits, has created the worst energy supply shock in history, ​sent fuel prices soaring, ⁠and disrupted global aviation.

PAKKISTAN OFFERS TO HOLD US-IRAN TALKS

Pakistan’s Prime Minister Shehbaz Sharif said on Tuesday he was willing to host talks between the U.S. and Iran on ending the war, a day after Trump postponed threats to bomb Iranian power plants after what he called “productive” talks.

Pakistan has long-standing ties to neighbouring Iran’s Islamic Republic and has been building ⁠a relationship ​with Trump.

Despite reports of negotiations, the Pentagon is expected to send thousands of soldiers from the U.S. ​Army’s elite 82nd Airborne Division to the Middle East, two people familiar with the matter told Reuters on Tuesday, adding to a massive U.S. military buildup.

The forces will add to the 50,000 U.S. troops ​already in the region and accelerate Washington’s massive U.S. military buildup there, fuelling fears of a longer conflict.

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US allies in Middle East ‘edging closer’ to joining conflict

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Key U.S. allies in the Middle East are moving closer to direct involvement in the conflict with Iran, as sustained attacks on Gulf infrastructure intensify pressure on regional governments, according to a report by The Wall Street Journal.

Both Saudi Arabia and the United Arab Emirates are reportedly weighing deeper coordination with the United States and Israel, following repeated Iranian missile and drone strikes that have disrupted their economies and threatened regional energy security.

While neither country has formally committed troops, recent developments suggest a shift toward more active participation. The report indicates that Gulf support is already enhancing U.S. operational capabilities, including facilitating airstrike logistics and potentially opening new avenues to target Iran’s financial networks.

Saudi Arabia signals shift in stance

Saudi Arabia appears to be reassessing its position as attacks on critical infrastructure continue. Riyadh has reportedly allowed U.S. forces access to the King Fahd Air Base, a move that could support expanded military operations.

Foreign Minister Faisal bin Farhan warned that the kingdom’s tolerance for Iranian attacks is limited. “Any belief that Gulf countries are incapable of responding is a miscalculation,” he said following recent strikes on energy facilities.

Crown Prince Mohammed bin Salman is said to be considering stronger action to restore deterrence, with officials suggesting it may be only a matter of time before Saudi Arabia takes a more direct role in the conflict.

According to the WSJ report, one source said that “it is only a matter of time before the kingdom enters the war.”

UAE ramps up pressure on Tehran

The United Arab Emirates has also taken steps to increase pressure on Tehran, particularly through economic measures. Authorities in Dubai have shut down Iranian-linked institutions, including the Iranian Hospital and Iranian Club, citing violations of national laws and alleged links to state-backed activities.

Officials warned that further action could include freezing billions of dollars in Iranian assets held within the UAE, a move that could significantly impact Iran’s already strained economy.

Long regarded as a key financial hub for Iranian businesses, the UAE’s shift signals a notable escalation in its stance, even as it continues to deliberate over potential military involvement.

Regional tensions and strategic stakes

The growing alignment among Gulf states follows a series of attacks on energy facilities across Saudi Arabia, Kuwait, the UAE, and Qatar. Doha has condemned the strikes as a dangerous escalation and a direct threat to regional stability.

At the center of the war remains control over the Strait of Hormuz, a critical artery for global oil shipments. Iran’s ability to disrupt traffic through the strait continues to give it significant strategic leverage.

Risk of wider regional war

As the conflict approaches the one-month mark, Gulf states are maintaining close coordination with Washington over next steps. However, analysts warn that continued Iranian strikes could force regional powers into open confrontation.

With economic, security, and geopolitical stakes rising, the prospect of a broader regional war is becoming increasingly likely unless tensions are quickly contained through diplomatic efforts.

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Tehran rejects Trump’s claims of talks, accuses US of spreading ‘fake news’

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Claims by Donald Trump that the United States is engaged in “good and productive conversations” with Iran have been firmly denied by Tehran, further clouding the already tense standoff between the two sides.

Iran’s Parliamentary Speaker, Mohammad Bagher Ghalibaf, dismissed the assertion, stating that no negotiations are currently taking place. In remarks posted on social media, he accused Washington of spreading “fake news” in an attempt to manipulate global financial and oil markets during a period of heightened volatility.

“No negotiations have been held with the US, and fake news is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped,” he said late Monday.

The denial comes after Trump signaled a temporary pause in planned military strikes on Iranian energy infrastructure, including power plants, following his earlier ultimatum that Tehran reopen the strategic Strait of Hormuz within 48 hours or face attack.

Analysts question timing of “talks”

Political analyst Mitchell Plitnick suggested the claim of ongoing talks may have been aimed more at calming markets than reflecting genuine diplomatic progress.

“He saw that markets were likely to react negatively to threats of attacking Iran’s electrical grid and moved to stabilize the situation,” Plitnick said, adding that there is no evidence of active communication between Washington and Tehran.

Iranian officials have consistently maintained that there has been no direct contact with the U.S., reinforcing skepticism over Trump’s statements.

Strategic stakes remain high

The dispute is closely tied to control of the Strait of Hormuz, a critical maritime chokepoint through which a large share of the world’s oil supply passes. Iran has warned it could restrict or even close the waterway if its territory or infrastructure is targeted, a move that could have far-reaching consequences for global energy markets.

Analysts note that this leverage gives Tehran a significant strategic advantage in the ongoing war, particularly as fears of supply disruptions continue to influence oil prices and global economic stability.

Fragile pause amid risk of escalation

While Trump has delayed potential strikes for several days, the situation remains highly volatile. The absence of confirmed diplomatic engagement raises concerns that the pause may be temporary, with the risk of rapid escalation still looming.

As tensions persist, international observers continue to call for transparency, restraint, and renewed diplomatic efforts to prevent a broader conflict in the region.

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