The conflict involving the United States, Israel, and Iran has entered its 73rd day, with diplomatic efforts to end the war facing fresh setbacks as Washington and Tehran openly clash over proposed peace terms. Tensions remain high across the Middle East, while global markets are reacting sharply to fears of prolonged instability in the oil-rich Gulf region.
United States President Donald Trump on Sunday rejected Iran’s latest proposal aimed at ending the conflict, describing the response as “totally unacceptable.” The rejection came days after Washington presented its own framework for renewed negotiations. Iranian state media, however, accused the US of demanding what it called Iran’s “surrender” and refusing to respect Tehran’s sovereignty.
Iran’s proposal reportedly called for an end to naval blockades, the lifting of international sanctions, and guarantees allowing the country to maintain control over its nuclear programme and foreign policy. Those issues remain central to the conflict, with Washington and Israel insisting Iran’s nuclear ambitions pose a major regional threat.
The worsening standoff is already having major economic consequences. Global oil prices surged again after Trump’s comments, with Brent crude rising above 104 dollars per barrel.
Analysts say fears over the continued disruption of shipping through the Strait of Hormuz are driving market uncertainty. Before the war began, the strategic waterway handled nearly one-fifth of global oil and liquefied natural gas shipments.
Despite reduced traffic, some oil tankers are still attempting to navigate the Strait, with reports indicating several vessels switched off tracking systems to avoid possible attacks.
Gulf nations remain on high alert after the United Arab Emirates intercepted two drones allegedly launched from Iran. Qatar also condemned a drone strike targeting a cargo ship in its waters, while Kuwait reported intercepting hostile drones in its airspace.
In Iran, authorities announced the execution of a 29-year-old man accused of spying for American and Israeli intelligence agencies. Iranian officials said the suspect worked at a scientific organisation linked to satellite operations and had passed classified information to foreign intelligence services.
Meanwhile, violence continues in Lebanon despite a ceasefire brokered earlier this year.
Israeli air raids reportedly targeted towns in southern Lebanon, killing two medics and a civilian at emergency response centres. The Israeli military also confirmed the death of one of its soldiers near the Lebanese border.
Diplomatic pressure is mounting internationally, with European Union foreign ministers meeting in Brussels to discuss the escalating war and its global impact. Political analysts say the conflict is also creating domestic pressure for President Trump, as rising fuel prices and economic uncertainty threaten public support ahead of the US midterm elections.
Financial markets are closely monitoring developments. While oil prices and the US dollar gained strength due to fears of wider instability, gold prices declined amid concerns that prolonged inflation could force central banks to maintain high interest rates for longer.
With peace talks stalled and military tensions spreading across the Gulf region, fears are growing that the conflict could trigger a wider regional crisis with significant consequences for global energy supplies and international security.
