US-Iran Truce Deal Awaits Trump as Strikes Test Ceasefire

A man holds Iran’s national flag in front of a large anti-US billboard featuring US President Donald Trump and the Strait of Hormuz at Valiasr Square in Tehran, Iran, 28 May 2026. (EPA)
A man holds Iran’s national flag in front of a large anti-US billboard featuring US President Donald Trump and the Strait of Hormuz at Valiasr Square in Tehran, Iran, 28 May 2026. (EPA)
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US-Iran Truce Deal Awaits Trump as Strikes Test Ceasefire

A man holds Iran’s national flag in front of a large anti-US billboard featuring US President Donald Trump and the Strait of Hormuz at Valiasr Square in Tehran, Iran, 28 May 2026. (EPA)
A man holds Iran’s national flag in front of a large anti-US billboard featuring US President Donald Trump and the Strait of Hormuz at Valiasr Square in Tehran, Iran, 28 May 2026. (EPA)

US and Iranian negotiators edged toward a deal to extend their fragile ceasefire for 60 days, but the potential breakthrough was still hanging on President Donald Trump's approval, US sources told AFP on Thursday.

The development came after Washington and Tehran accused each other of violating the truce, underscoring the volatility of talks three months after the Middle East war began with US-Israeli strikes on Iran.

The US sources confirmed reporting by Axios that the two sides had agreed on a memorandum of understanding to prolong the ceasefire and launch negotiations on Iran's nuclear program.

Under the proposed deal, shipping through Hormuz would be unrestricted, with no tolls or harassment; Iran would remove all mines within 30 days; and the United States would lift its naval blockade if commercial traffic resumes, Axios reported.

But Iran's Tasnim news agency, citing a source close to Tehran's negotiators, said the text had not been finalized and that Pakistan would be informed if a deal was reached.

Iranian sources cited by local media said any deal would be complete only when announced by Tehran, not unilaterally by Trump.

Late on Thursday, US Vice President JD Vance told reporters that Trump was not yet ready to approve it, even though negotiations had "made a lot of progress."

"We're going back and forth on a couple of language points," he added.

US strikes on the southern Iranian port city of Bandar Abbas prompted Iran to target "the American airbase that served as the source of the attack," state broadcaster IRIB reported, citing the Revolutionary Guards.

The Guards did not specify the location of the base, but Kuwait, which hosts US troops, said its air defenses responded to incoming fire.

Kuwait's foreign ministry condemned "the criminal Iranian attacks that targeted the territory of the State of Kuwait with missiles and drones, in a dangerous escalation."

US Central Command called the attack an "egregious ceasefire violation."

Iranian forces had fired at four ships trying to transit the Strait of Hormuz without authorization, IRIB reported Thursday. Iran has blockaded the waterway since the war began.

US forces said they had intercepted five attack drones in and around the strait, and prevented the launch of a sixth near Bandar Abbas.

Iranian foreign ministry spokesman Esmaeil Baqaei called the US strikes truce "violations".

A US official told AFP the actions were "measured" and "intended to preserve the ceasefire".

Iran's Guards threatened a "firm response" to any renewed attacks.

- Strait standoff -

Before Thursday's strikes, Amir, a 27-year-old software developer in Tehran, said fears of renewed fighting were constant.

"I feel like nothing is certain yet," he said. "The daily question is: Will there be missile strikes tonight?"

A key focus of the proposed deal is restoring full traffic through the Strait of Hormuz, the closure of which has curbed the vast flows of oil and gas that normally pass through it.

Oil prices bounced higher Thursday after reports of the strikes, reversing much of Wednesday's deal-driven fall.

Markets remained choppy as traders balanced hopes of a ceasefire extension against the risk of renewed fighting. Brent crude slipped after earlier jumping around 2.5 percent, while Wall Street closed higher even as European and Asian markets mostly fell.

The war's economic toll has become harder to ignore, with analysts warning that prolonged disruption in Hormuz could keep energy prices high and make inflation harder to contain.

Qatar's emir also spoke with Trump by phone about efforts to reduce escalation, after Doha hosted senior Iranian officials this week.

- Lebanon escalation -

In Lebanon, a separate ceasefire has done little to stop the fighting between Israel and Iran-backed Hezbollah.

Iran has insisted any agreement to end the war must apply to Lebanon.

Israel's military said Thursday it had conducted a precise strike in the Beirut area, while Lebanon's military said the attack hit an apartment south of the capital.

AFPTV footage showed smoke rising from the area on the edge of Beirut's southern suburbs, a Hezbollah stronghold.

The escalation comes as Lebanon and Israel prepare for talks between military delegations at the Pentagon on Friday, and for US-brokered talks early next week -- the fourth round since the latest Israel-Hezbollah conflict erupted.

Lebanon's health ministry said the Beirut-area strike killed three people, including a woman, her baby daughter and a Syrian child, and wounded 15.

It said Israeli attacks had killed 3,324 people, up 55 from the previous day, when Israel declared most of south Lebanon "combat zones" and told residents to leave.

The Israeli military said a soldier was killed Wednesday by a Hezbollah drone near the Lebanon border, bringing its military death toll to 23 troops, along with one civilian contractor.



US Treasury Sanctions Canadian Money Services Firms Over Iran-Related Transactions

FILE PHOTO: The US Department of the Treasury Building in Washington, D.C., U.S., July 11, 2026. REUTERS/Daniel Heuer/File Photo/File Photo
FILE PHOTO: The US Department of the Treasury Building in Washington, D.C., U.S., July 11, 2026. REUTERS/Daniel Heuer/File Photo/File Photo
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US Treasury Sanctions Canadian Money Services Firms Over Iran-Related Transactions

FILE PHOTO: The US Department of the Treasury Building in Washington, D.C., U.S., July 11, 2026. REUTERS/Daniel Heuer/File Photo/File Photo
FILE PHOTO: The US Department of the Treasury Building in Washington, D.C., U.S., July 11, 2026. REUTERS/Daniel Heuer/File Photo/File Photo

The United States on Friday announced a new round of sanctions targeting networks and entities connected to Iran, according to a notification published on the US Department of the Treasury’s website.

“Today, as part of Operation Economic Outcast, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated eight money services businesses based in Canada that enable the Iranian regime, sanctioned entities associated with the regime, and other illicit actors that move assets into and out of Iran,” it wrote.

The sanctions effectively cut the firms off from the dollar-based financial system, blocking any assets that the firms may have in the United States and prohibiting any transactions with US persons or entities.

The actions are the latest ⁠in a series of Treasury moves against firms outside the United States that it says help Iran get around US sanctions, as Washington keeps up pressure on Tehran.

“Canada cannot be a safe haven for illicit financial facilitators that provide sanctions evasion services to the Iranian regime and its proxies,” said Secretary of the Treasury Scott Bessent. “Treasury will pursue and disrupt the Iranian regime’s financial channels anywhere in the world.”

The Treasury identified the designated businesses in Ontario and British Columbia as Diverse Trade ⁠Inc doing business as Million Exchange, 1380079 BC Limited, Top PC Technician Inc, NIA Nations Currency Ltd, 2397639 Ontario Ltd doing business as Farah Exchange, CCC Inc and B Galaxy Inc and Darvish Exchange.

Separately, the Treasury said its Financial Crimes Enforcement Network division ⁠issued an order that also cuts off virtual currency exchanger MEXC Global from the US financial system over transactions that it says are linked to sanctions evasion by Iran, North ⁠Korea and Russia.

FinCEN, the Treasury's anti-money laundering unit, said that the order prevents US financial institutions from processing fund transfers involving Seychelles-incorporated MEXC Global, which it ⁠says has facilitated at least $16 billion in illicit transactions linked to Iran, North Korea and Russia as well as transactions with other sanctioned actors.


Washington Offers $20 Million Reward for Information on Iran's Nuclear Program

The Iranian president visiting a centrifuge facility as part of Iran's nuclear program (Archive - Iranian Presidency)
The Iranian president visiting a centrifuge facility as part of Iran's nuclear program (Archive - Iranian Presidency)
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Washington Offers $20 Million Reward for Information on Iran's Nuclear Program

The Iranian president visiting a centrifuge facility as part of Iran's nuclear program (Archive - Iranian Presidency)
The Iranian president visiting a centrifuge facility as part of Iran's nuclear program (Archive - Iranian Presidency)

Washington is offering a $20 million reward “and possible relocation” for information about Iran’s nuclear program, the US military said Friday, as President Donald Trump reiterated Tehran wants to make a deal to end the war.

The US Department of State’s Rewards for Justice program said in an announcement posted to X that the “government remains committed to countering any attempt by Iran to develop a nuclear weapons program.”

The State Department agency said it was seeking information on “nuclear scientists and staff, nuclear program-related technologies, and capabilities, associated organizations and personnel.”

“If you have information on Iran’s nuclear program, assets, or associated individuals, send it to us via Signal or our Tor-based tip line. You may be eligible for a reward and relocation,” it added.

Anticipating Trump’s Decision

The announcement came a day after Trump said he would decide “soon” on whether to resume the war on Iran following a meeting with his top national security advisers.

“I would rather not destroy the rest of the country if possible, but maybe I will have to. You'll know soon enough,” Trump told reporters in the Oval Office.

US-Iran negotiations remain deadlocked over Iran's stockpile of near-weapons-grade uranium. Trump has said Iran must give up the stockpile, which he has referred to as “nuclear dust.” But Iranian officials have been adamant that they will not ship the uranium outside the country.

Earlier on Friday, two Middle East government officials told AP that Iran was reviewing proposals presented by Qatar to address differences with Washington over Tehran's nuclear program.

The Qatari draft involves lifting the US blockade on Iran's ports and releasing some of Tehran's frozen funds in exchange for allowing International Atomic Energy Agency inspectors to visit sites bombed by the US and Israel, according to regional officials cited by AP.

Mohsen Rezaei, secretary of Iran's Supreme National Security Council, said on Thursday that the Strait of Hormuz would not reopen to Washington and no negotiations would take place until Tehran’s “seven conditions” were met.

SATELLITE VIEW shows vehicles at an entrance to Pickaxe Mountain tunnels, near Natanz nuclear facility, in Iran, June 21. (VANTOR/HANDOUT VIA REUTERS)

Reviewing Nuclear Doctrine

In Iran, calls are growing for a reassessment of the country’s nuclear doctrine and a withdrawal from the Treaty on the Non-Proliferation of Nuclear Weapons (NPT).

Despite those demands, Rezaei said earlier this month that Iran has made no official decision to change its nuclear doctrine.

“So far, no official decision has been made by the government or the Supreme National Security Council to change the nuclear doctrine,” Rezaei said, according to remarks carried by the semi-official Tasnim News Agency.

Last week, Mohammad-Javad Haj-Ali-Akbari, Tehran’s interim Friday prayer leader, called for a revision of Iran’s nuclear doctrine and a move toward acquiring nuclear weapons. He claimed that the issue has now become a “national demand.”

Few days later, Nasrollah Pejmanfar, head of the Iranian parliament’s Article 90 Commission, called for Iran to seriously consider withdrawing from the Nuclear Non-Proliferation Treaty, intensifying the debate over Tehran’s nuclear policy amid escalating tensions with Western powers.

On Thursday, Iranian lawmaker Mohammad Taghi Naghdali said that public demands had shifted from nuclear energy to nuclear warheads, calling on parliament to prioritize Iran's withdrawal from the Nuclear Non-Proliferation Treaty.

The New York Times wrote on Thursday that senior Iranian officials and clerics are also debating whether Iran should withdraw from the NPT, which prohibits the development of a nuclear weapon.

Iran’s Leader Mojtaba Khamenei has not taken a clear public position on the issue. His father, former Leader Ali Khamenei had stated that nuclear weapons are forbidden.

Late last month, International Atomic Energy Agency chief Rafael Grossi said there were no signs of suspicious activity at Iranian nuclear sites bombed by the United States in June.

“We do not see anything that would give rise to hypotheses of any substantive work going on there,” Grossi said in New York.

Grossi told reporters that inspectors had no access to the two sites stricken in June, but confirmed that some inspection was under way.

“We are trying to build it back, and we are inspecting in Iran,” he said.

On Friday, a BBC report said Iran appears to be undertaking significant new construction near at least two of its major missile sites and repairing bases damaged by months of US and Israeli air strikes, according to analysis of satellite images.

It said evidence of digging and new buildings are visible in satellite imagery taken in November at the Garmdareh military base in Karaj near the capital Tehran and the Shahroud base in the north, analysts at British intelligence company MAIAR, who reviewed the photos, told BBC Verify.


Army Spokesman: Iranian Forces 'Stronger' Than at Beginning of War

Iranian Army spokesman Mohammad Akraminia (Daneshjoo file photo)
Iranian Army spokesman Mohammad Akraminia (Daneshjoo file photo)
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Army Spokesman: Iranian Forces 'Stronger' Than at Beginning of War

Iranian Army spokesman Mohammad Akraminia (Daneshjoo file photo)
Iranian Army spokesman Mohammad Akraminia (Daneshjoo file photo)

Iran's military is "stronger" and more motivated than it was when the United States and Israel started the war in February, Iranian state media reported on Saturday, citing an army spokesman.

"Today, the Islamic Republic's armed forces... having gained experience from direct confrontation with the United States and the Israeli regime, are on higher alert and are stronger than they were at the beginning of the war," Mohammad Akraminia said, according to the state news agency IRNA.

"They now possess greater motivation, commitment, and self-confidence."

The war, which began when the United States and Israel carried out a massive wave of strikes in late February, has been deadlocked for months.

Tehran has sought to limit traffic through the Strait of Hormuz, which normally carries about one-fifth of global oil consumption.

According to AFP, Akraminia said that Iranian armed forces retained control over the strategic waterway and that it would remain closed until the United States accepted Tehran's demands.

"Under the order of the Supreme Leader, the response of the armed forces will be immediate, effective, and without geographical limitations," he added.

US President Donald Trump this week confirmed new strikes on Iran, after American media reported attacks on Iran's Qeshm Island in the Strait of Hormuz.

On Saturday, the local Tasnim news agency reported that two missiles had struck Qeshm, adding that there was no official information so far on the damage.

Iranian state television reported two explosions on the island.

The Iranian army said early Saturday that its air defenses had "struck and destroyed" a US drone that was flying over the island, according to state media. It did not say whether the island was attacked.