★ U.S.A
Trump Says Iran Talks to Take Place on Monday, Sets No Deadline for Deal
President Donald Trump said US-Iran negotiations will begin Monday without setting a deadline for an agreement after suspending a planned military strike to allow diplomacy. The talks will focus on reopening the Strait of Hormuz, lifting the US blockade on Iranian ports, addressing Iran’s nuclear program, ending regional military attacks, halting strikes by Iran-backed militias in Iraq, restoring unrestricted Iranian oil exports, and reviving the June 18 memorandum of understanding through intensified mediation by Middle Eastern countries.
Trump Cancels Planned Iran Strike After Gulf Mediation Efforts
US President Donald Trump said he canceled a planned military strike on Iran after last-minute requests from Tehran and Gulf states to allow diplomacy. He said preliminary understandings include reopening the Strait of Hormuz and addressing Iran’s nuclear program, with Israel supporting the process. Gulf mediation intensified as Washington maintained pressure and Iran warned of a decisive response to any new attack.
US Defense Secretary Says Military Ready At Unprecedented Postwar Levels
US Defense Secretary Pete Hegseth said US forces remain on full alert and ready to act, stressing that President Donald Trump’s decision to delay strikes on Iran has not affected military readiness. He added that the Pentagon’s preparedness has reached its highest level since World War II and that US forces are fully prepared for any mission.
Oil Prices Plunge Seven Percent After Trump Announces New Iran Talks
Global oil prices fell about 7% after US President Donald Trump postponed planned military strikes on Iran and announced new negotiations with Tehran. Brent crude dropped to $81 a barrel and US crude to $78, while European natural gas prices fell more than 4%. The decline also followed OPEC+ approval of a 188,000-barrel-per-day production increase starting in September.
==============
★ IRAN
Iran Rejects US Talks As Hormuz Transit Deal Nears Completion
Iran said it is holding no talks with the United States. At the same time, negotiations with Oman have reached their final stage to establish a temporary safe transit corridor through the Strait of Hormuz. Foreign Ministry spokesman Esmaeil Baghaei said US actions prevent any fundamental change to the strait’s status and stressed that an agreement with Oman alone would not reopen the waterway. Foreign Minister Abbas Araghchi said the negotiations are close to completion, alongside efforts to revive the Islamabad Memorandum and suspend US and Israeli strikes pending a swift agreement.
Hardline Newspaper Claims Iran Could Cripple Gulf States Within Hours
Iranian hardline newspaper Kayhan claimed Tehran could plunge Gulf Arab states into crisis within half a day with missile strikes if Iran’s energy infrastructure is attacked. The paper said damage to Iran would reduce, but not halt, services, while Gulf states would face greater disruption. It also claimed Iran could influence political developments and help bring new governments to power across the region.
Iran Fuel Banking And Inflation Crises Push Economy Toward Collapse
Iran cut subsidized gasoline quotas to 50 liters per month after war damaged domestic production, forcing higher fuel imports. Banking disruptions continue to block electronic payments, while unpaid salaries, soaring inflation, and a weakening rial deepen economic hardship. The IMF forecasts a 6.1% economic contraction in 2026, as the US maritime blockade intensifies pressure on Iran’s economy and energy sector.
=================
★ GULF STATES
Saudi Crown Prince Urges Trump To Prioritize Dialogue To Reduce Tensions
Saudi Crown Prince Mohammed bin Salman urged US President Donald Trump to prioritize dialogue and intensify efforts to de-escalate regional tensions during a phone call discussing the Middle East crisis. He stressed preventing a broader conflict through diplomatic solutions. The call came after Trump said he canceled planned strikes on Iran while awaiting a deal that could reopen the Strait of Hormuz and address Tehran’s nuclear program.
Saudi Foreign Minister Holds Talks With Iranian, Qatari, Jordanian Counterparts
Saudi Foreign Minister Prince Faisal bin Farhan held separate calls with his Iranian, Qatari, and Jordanian counterparts to discuss regional developments and efforts to reduce tensions. The ministers stressed coordinating diplomatic efforts, protecting regional security, restoring freedom of navigation in the Gulf and Red Sea, and limiting the crisis’s impact, while Saudi Arabia reaffirmed its commitment to promoting regional stability.
=================
★ YEMEN
Houthis Reinforce Frontlines Over Fears Of Major Government Offensive
Houthi forces have deployed significant reinforcements and built new fortifications across multiple frontlines over fears of a possible government offensive. Yemeni military sources said the group, with support from Iranian Revolutionary Guard advisers, also strengthened missile and drone positions near Hodeidah, the Bab al-Mandab Strait, and the Gulf of Aden, while turning Kamaran Island into a launch base for drones, missiles, and explosive boats.
==============
★ Disclaimer: This publication is a digest of various news sources compiled by the Early Phoenix team and edited by Rania Kisar. The items are curated, concise summaries of news items hyperlinked within each story. The items and summaries presented do not necessarily represent the views of the American Center for Levant Studies.
