How Iran’s Hard-Liners Blew Up a Peace Deal With Trump

A man drives next to a billboard of Iranian supreme leader Mojtaba Khamenei in a street in Tehran, Iran, 09 July 2026. EPA/ABEDIN TAHERKENAREH
A man drives next to a billboard of Iranian supreme leader Mojtaba Khamenei in a street in Tehran, Iran, 09 July 2026. EPA/ABEDIN TAHERKENAREH
TT

How Iran’s Hard-Liners Blew Up a Peace Deal With Trump

A man drives next to a billboard of Iranian supreme leader Mojtaba Khamenei in a street in Tehran, Iran, 09 July 2026. EPA/ABEDIN TAHERKENAREH
A man drives next to a billboard of Iranian supreme leader Mojtaba Khamenei in a street in Tehran, Iran, 09 July 2026. EPA/ABEDIN TAHERKENAREH

Attacks on ships in the Strait of Hormuz led by hardliners derailed a push by more moderate pragmatists in Iran to reach an end to hostilities with the United States and repair their nation’s ailing economy, The New York Times revealed on Sunday, citing regime insiders.

It said Iranian President Masoud Pezeshkian was riding high in early July, fresh off the successful negotiation of a peace agreement with the United States, and had traveled to neighboring Iraq for part of a weeklong funeral spectacle for Iran’s slain supreme leader.

Iranian forces had opened fire on three commercial ships in the Strait of Hormuz, setting ablaze a Qatari LNG tanker and damaging other vessels.

Outraged, Pezeshkian phoned General Ahmad Vahidi, the commander in chief of the Iranian Revolutionary Guards Corps, and in a raised voice called the actions reckless and demanded answers, according to five Iranian officials and two Guards members familiar with the events.

Vahidi told the president that he had neither authorized nor had advance knowledge of the strike, the five officials said.

The nation’s Supreme National Security Council, which plays a critical role in both the war and negotiations, had also been in the dark, he said.

In fact, much of the country’s leadership was unaware that a fringe hardline faction had decided to act on its own.

Pezeshkian immediately returned to Tehran. By the next morning, the US retaliated with strikes on Iran and the two countries were back at war.

The hard-liners succeeded in part because the only figure with the authority to resolve such disputes — the new supreme leader, Mojtaba Khamenei — has been a phantom since taking office in March.

He has not been seen, and his voice has not been heard. And the authenticity of written statements and messages attributed to Khamenei has been questioned, including by Pezeshkian, according to three Iranian officials.

Pezeshkian immediately returned to Tehran. By the next morning, the US had retaliated with airstrikes on Iran. The two countries were back at war.

Senior Iranian officials and a Guards member said in interviews that what followed were some of the most volatile political confrontations within Iran’s leadership in memory. Officials engaged in shouting matches. Two senior generals threatened to resign. Accusations of treason and betrayal flew.

The reverberations, officials said, contributed to a shake-up at the National Security Council and the supreme leader’s appointment of General Mohsen Rezaei, a seasoned politician and former commander in chief of the Guards, to lead the council, as he was thought to have the skill to mediate among political factions.

But the newspaper said divisions persisted and the hardliners who have committed Iran to escalation are in an even stronger position.

The New York Times account of the inner deliberations of Iran’s leadership is based on interviews with eight Iranian officials, three members of the Revolutionary Guards, four former officials and a review of dozens of speeches and comments by government officials and military generals from June to September published in the Iranian press and social media. The officials interviewed for this article spoke on the condition of anonymity to discuss delicate issues of national security.

Three Iranian officials said inquiries by the government and security forces traced the decision to strike the three commercial ships in July to the cleric Hossein Taeb, an influential spymaster who had opposed the peace deal with the United States from the outset.

Taeb had been telling the new supreme leader that Iran had made a mistake in ending the war and agreeing to the deal, they said.

Taeb, in a recent speech to military families, said that he was not opposed to talks but that “negotiations that ignore the rights of our people and concede to the excessive demands of the enemy have no place in Iran’s politics.”

Khamenei recently appointed Taeb as the head of the Basij militia, which is responsible for quelling domestic dissent. He had previously served for more than 20 years as chief for the Revolutionary Guards’ intelligence agency before the previous supreme leader ousted him in 2022 over failures such as Israeli infiltration of his rank and file, and a foiled plot in Türkiye.

Taeb re-emerged after that supreme leader, Ayatollah Ali Khamenei, was killed at the start of the war, and he played a key role in the selection of the son Mojtaba as the successor to his father, officials said at the time.

“The attack on the ships was orchestrated with the goal to blow up the memorandum of understanding with Trump and to kill the prospects of any future negotiations and deal,” Alireza Namvar Haghighi, an Iran expert and former official who still has close contacts in the government, said in an interview from Canada.

When Pezeshkian demanded to know who had struck the three ships, he was told that commanders in the field had acted on their own, in line with an order empowering them to attack any ship violating Iran’s control of the Strait without waiting for approval from central command, according to the officials with knowledge of these discussions.

In one sign of the dispute, the Guards’ Khatam al-Anbiya headquarters never issued a statement claiming responsibility for the July 7 attack, as has been routine in other attacks before and since.

Iranian officials relayed this same account to the United States and some of its regional allies in the immediate hours after the attacks, blaming rogue operators, according to US officials who briefed reporters at the time and the three Iranian officials.

On the streets and on state television in Iran, meanwhile, the hardliners openly attacked the negotiating team and its peace deal, and at nightly rallies, crowds chanted for a return to war.

The Iranian government has devised an official narrative deflecting blame for the collapse of the agreement, saying Washington violated it first by not stopping Israel’s attacks on the militant group Hezbollah in Lebanon, by withholding Iran’s frozen assets and by sneaking ships through a portion of the Strait of Hormuz not controlled by Iran. But few inside Iran’s political circles are convinced by this version, including Pezeshkian himself, five officials said.

Pezeshkian said publicly last month that every agreement sees violations and that they should be addressed through talks, not confrontation.

War Plan

For weeks, the political leaders and generals running Iran have debated two ways to break the stalemate with the United States, officials said.

Under one approach, Iran could seek to return to negotiations. Under the other, it would escalate attacks on American targets, aiming to strike naval vessels, kill American troops and raise global oil prices.

Both would aim to end the US naval blockade on Iran’s southern ports, which have paralyzed trade and brought oil sales down to zero, according to officials.

Iran’s economy is deteriorating, with the currency plunging daily, inflation soaring and the government facing a cash deficit.

Hardline generals, including Brigadier General Seyyed Majid Mousavi, who commands the Guards’ Aerospace Force, pressed for confrontation, officials and two Guards members said.

Pezeshkian and Speaker Mohammad Bagher Ghalibaf, who is also the top negotiator with the United States, were among the officials who warned that the war plan risked dragging the country into an abyss, with even fiercer US airstrikes and more crippling economic pressure.

But by last Saturday, the hardline faction had gained the upper hand. “The war between Iran and the United States,” said Mahdi Mohammadi, the top adviser to General Ghalibaf, “has entered the phase of escalation.”



Iran Rejects France’s ‘Baseless Accusations’ on Cyberattack

Empty refrigerated shelves are seen inside a Delhaize Shop & Go store after an overnight IT incident affected cooling and freezer systems in a number of Delhaize stores in Belgium and Luxembourg, causing temperature spikes in refrigeration units, in Linkebeek near Brussels, Belgium, November 2, 2026. (Reuters)
Empty refrigerated shelves are seen inside a Delhaize Shop & Go store after an overnight IT incident affected cooling and freezer systems in a number of Delhaize stores in Belgium and Luxembourg, causing temperature spikes in refrigeration units, in Linkebeek near Brussels, Belgium, November 2, 2026. (Reuters)
TT

Iran Rejects France’s ‘Baseless Accusations’ on Cyberattack

Empty refrigerated shelves are seen inside a Delhaize Shop & Go store after an overnight IT incident affected cooling and freezer systems in a number of Delhaize stores in Belgium and Luxembourg, causing temperature spikes in refrigeration units, in Linkebeek near Brussels, Belgium, November 2, 2026. (Reuters)
Empty refrigerated shelves are seen inside a Delhaize Shop & Go store after an overnight IT incident affected cooling and freezer systems in a number of Delhaize stores in Belgium and Luxembourg, causing temperature spikes in refrigeration units, in Linkebeek near Brussels, Belgium, November 2, 2026. (Reuters)

Iran on Tuesday said French accusations that it was responsible for cyberattacks on supermarket fridges last month were "baseless".

"Iran's foreign ministry categorically rejects the French government's baseless and one-sided accusations against Iran regarding alleged cyber activities in France," the ministry said in a statement.

It added that it "strongly condemns this hackneyed policy of leveling accusations against the country".

Hundreds of French supermarkets were hit in the October 11 and 12 cyberattacks, which raised the temperatures in their refrigerators and freezers, forcing many to throw away entire inventories of perishable food.

Similar incidents were then reported in at least 11 other European countries in early November.

Along with summoning Iran's ambassador and seeking European-level sanctions, French Foreign Minister Jean-Noel Barrot said Tuesday that Paris would "rule nothing out and will take all measures -- including those we may not disclose publicly -- that we deem proportionate and necessary to deter any further attacks".

Tehran, meanwhile, said it would "not hesitate to take necessary and appropriate measures to safeguard its national interests and security in the face of unlawful foreign activities".

It added that France "is merely projecting its own governance failures" with these accusations.

Later in the day, Iran's Foreign Minister Abbas Araghchi blamed the French government for the incident.

"Unable to manage fridges let alone addressing grievances of its people, French government is shifting blame for its failures onto others," the top diplomat said on X.

Also on Tuesday, the European Union said it would look to provide a "swift and united response" pending discussion with member states after France's announcement.


Eisenkot Quickly Targets Netanyahu’s Legacy in New Israeli Parliament

 Former military chief Gadi Eisenkot, Israeli Prime Minister Benjamin Netanyahu, Israeli President Isaac Herzog and other Israeli officials pose for a family photo on the day of the inauguration of Israel's 26th parliament, at the Knesset in Jerusalem, November 10, 2026. (Reuters)
Former military chief Gadi Eisenkot, Israeli Prime Minister Benjamin Netanyahu, Israeli President Isaac Herzog and other Israeli officials pose for a family photo on the day of the inauguration of Israel's 26th parliament, at the Knesset in Jerusalem, November 10, 2026. (Reuters)
TT

Eisenkot Quickly Targets Netanyahu’s Legacy in New Israeli Parliament

 Former military chief Gadi Eisenkot, Israeli Prime Minister Benjamin Netanyahu, Israeli President Isaac Herzog and other Israeli officials pose for a family photo on the day of the inauguration of Israel's 26th parliament, at the Knesset in Jerusalem, November 10, 2026. (Reuters)
Former military chief Gadi Eisenkot, Israeli Prime Minister Benjamin Netanyahu, Israeli President Isaac Herzog and other Israeli officials pose for a family photo on the day of the inauguration of Israel's 26th parliament, at the Knesset in Jerusalem, November 10, 2026. (Reuters)

Israeli ex-army chief Gadi Eisenkot and his allies launched a legislative onslaught against caretaker Prime Minister Benjamin Netanyahu's legacy on Tuesday, as a new parliament convened in a heated first session. 

Though questions still linger as to who can form a government, Eisenkot's broad left-to-right bloc wasted no time in setting the agenda of the new Knesset with a green light from Israeli-Arab lawmakers, whose role has stirred up heated opposition from Netanyahu's base and even right-wing supporters of Eisenkot. 

Eisenkot's Yashar party said it submitted a slew of proposals before the new parliament, including establishing an independent commission to investigate security failures that allowed the Hamas attack on October 7, 2023, the deadliest day in Israel's history. 

Netanyahu has long opposed such a probe, denying any wrongdoing and calling instead for a politically appointed commission. 

Eisenkot's party also moved for a sweeping repeal of a judicial overhaul implemented by Netanyahu's government, which had triggered some of Israel's largest-ever protests before being overshadowed by three years of war. 

Setting the stage for legislative action, Eisenkot's bloc announced it had secured the votes to install a new parliament speaker, Matan Kahana, also a former senior military figure. 

But neither Eisenkot nor Netanyahu -- Israel's longest-serving prime minister with nearly two decades in power -- have the 61 votes needed to form a government. 

"I am committed in this complex situation to form a national-emergency government as quickly as possible," Eisenkot, a low-key 66-year-old who only recently entered politics, said before his swearing-in. 

Netanyahu, speaking after the inaugural session, made a new push for a national-unity government, saying Israel needed to confront a threat from Iran's clerical government, which has survived two major Israeli bombing campaigns the premier ordered with support from US President Donald Trump. 

With his political survival on the line -- and facing potential jail time if convicted on corruption charges after he is out of power -- Netanyahu appeared to acknowledge a shifting diplomatic reality after US Democrats soundly defeated Trump in midterm elections last week on the back of anger over the war. 

"In the very near future, we're going to be confronted by international pressure to accept a nuclear-armed Iran and the preservation of this terror regime that seeks to annihilate us," Netanyahu said. 

Iran denies seeking nuclear weapons and both Netanyahu and Trump have previously boasted that its nuclear program was devastated. 

Eisenkot dismissed the remarks as a "shameful" exploitation of the occasion, casting them as evidence that Netanyahu was "unfit to remain in office for even one more minute". 

- Confrontations over Arab-Israelis - 

President Isaac Herzog on Sunday tasked Eisenkot with forming a government, giving him an initial 28 days, which can be extended by 14 more. 

Opening the session, Herzog, who otherwise holds a largely ceremonial role, urged lawmakers to "do everything to avoid a repeat election". 

"Reach out a hand for compromise, even between rivals," Herzog said. 

But the tone in the new parliament was immediately tense, with shouting breaking out between lawmakers. 

Eisenkot's choice for speaker is expected to sail through thanks to support from Arab-Israeli lawmakers, whose ranks grew to historic highs due to anger over Netanyahu's far-right government. 

But Avigdor Liberman -- a member of Eisenkot's bloc who has become a staunch critic of his former mentor Netanyahu despite sharing his hawkish views -- has refused to serve in a government that relies on the Israeli-Arabs. 

A number of Israeli-Arab lawmakers -- descendants of Palestinians who stayed after Israel's creation in 1948 -- left the opening session Tuesday as children sang the national anthem so as to avoid standing for it. 

Liberman posted news of the walkout on social media, writing: "You want to form a government with them?" 

Far-right caretaker national security minister and Netanyahu ally Itamar Ben-Gvir loudly heckled Yousef Jabareen, leader of the largest Arab-majority grouping, the Joint List, during the session. 

"Who is he pledging allegiance to, Hamas?" Ben-Gvir shouted before order was restored. 

Mansour Abbas, leader of the Israeli-Arab party Raam, generally seen as more moderate, promised to work to replace the Netanyahu government, saying: "We aspire to be part of the solution." 

- Plea for ultra-Orthodox - 

Shunning Arab-Israelis, Liberman has instead proposed an alliance with ultra-Orthodox Jews, despite his years of bitter denunciations of the community for its singular priority on maintaining an exemption from mandatory military service. 

Eisenkot's core bloc has 48 seats, but would achieve a majority if the 19 Arab-Israeli lawmakers either enter the government or, more likely, vote for it without joining. 

The two ultra-Orthodox parties hold 13 seats. United Torah Judaism, which has seven, has stopped short of recommitting to Netanyahu, leaving him with 46 seats. 

Netanyahu publicly pleaded with the ultra-Orthodox to stay with him. 

"They're going to promise you the moon and the stars but one minute after, God forbid, they form a government run by the left, all of those promises will vanish," he said. 


Paraguay Partially Reimburses Almost All Bank Crisis Victims

The interior of a closed Ueno Bank's office, which Paraguay's central bank seized amid a solvency crisis, is seen through its window that broken last week during a protest against the government and the bank in Asuncion, Paraguay, Monday, Nov. 9 , 2026. (AP)
The interior of a closed Ueno Bank's office, which Paraguay's central bank seized amid a solvency crisis, is seen through its window that broken last week during a protest against the government and the bank in Asuncion, Paraguay, Monday, Nov. 9 , 2026. (AP)
TT

Paraguay Partially Reimburses Almost All Bank Crisis Victims

The interior of a closed Ueno Bank's office, which Paraguay's central bank seized amid a solvency crisis, is seen through its window that broken last week during a protest against the government and the bank in Asuncion, Paraguay, Monday, Nov. 9 , 2026. (AP)
The interior of a closed Ueno Bank's office, which Paraguay's central bank seized amid a solvency crisis, is seen through its window that broken last week during a protest against the government and the bank in Asuncion, Paraguay, Monday, Nov. 9 , 2026. (AP)

Almost all eligible depositors who lost access to their money in a bank seizure that rocked Paraguay have had part of their funds reimbursed, the Central Bank said Tuesday.

The November 3 takeover of Ueno Bank amid major insolvency concerns locked almost half the population of the normally stable country out of their accounts.

Senators impeached President Santiago Pena, who is linked to Ueno, over the crisis -- a key demand of large-scale nationwide protests along with the return of the money.

The government, now led by Pena's former vice president Pedro Alliana, sped up the return of deposits via a guarantee fund.

Ninety-three percent of eligible depositors had been at least partially reimbursed via the fund as of Monday, its director Jose Maciel told a press conference.

"They finally transferred the money I was missing," 45-year-old Rosario, who preferred not to give her surname, told AFP.

Between Thursday and Monday, $340 million had been reimbursed to nearly 1.7 million people, according to Central Bank data.

The bank has identified 1,867,000 Ueno clients entitled to access the guarantee fund, its press office told AFP, without specifying how many people do not qualify.

Ueno began as a small fintech company with a digital-first model that attracted many low-income customers.

Within three years it became a major bank handling state pensions and the accounts of several government entities.

The number of individuals affected by the crisis surpasses the number of direct clients of the bank, which held over $800 million in public funds.