Iran war news Highlights: Iran seizes US Remus 600 underwater drone in Strait of Hormuz, says state media

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Saudi airstrikes on Taiz in southwest Yemen caused dozens of casualties in an area controlled by the Houthis, the Iran-backed group said on Sunday, as fighting escalated further after a truce broke down months ago.

The Houthi's military spokesman Yahya Saree accused Saudi Arabia of launching two air raids that hit a market on the outskirts of the city, saying nearly 50 people were killed or wounded without specifying the exact breakdown.

The spokesman said blood was "unjustly and aggressively spilled" in a statement posted online, vowing there would be consequences for the attack.

Earlier, the group's Al-Masirah TV channel said a strike killed seven people and wounded 40 more at a market in Taiz, minutes after reporting that a Saudi fighter jet had targeted the area.

— AFP

A day after turning down an Iranian proposal aimed at ending the war, US President Donald Trump told Axios in a phone interview on Sunday that he expects American negotiators to hold further discussions with Tehran this week.

Iran insisted on Sunday that only diplomacy can solve its conflict with the United States and Israel after US President Donald Trump said he rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting.

"Our conditions are clear, and any move toward reopening the Strait of Hormuz is contingent on these conditions being met," Iranian Foreign Minister Abbas Araqchi posted on social media. "Only a negotiated solution can get them out of this deadlock."

Iran announced a peace proposal last week at the UN General Assembly in New York, saying it had been transmitted to the Americans via Qatari mediators. Trump said on Saturday he rejected the plan and argued that desperation was driving the Iranians’ push for an agreement on the key waterway.

"They want to make a deal to open the Hormuz Strait immediately because they're losing so badly," Trump told reporters at the White House.

— Reuters

A Saudi airstrike on Taiz in southwest Yemen killed seven people and wounded dozens more, Houthi media reported on Sunday.

The Iran-backed Houthis' Al-Masirah TV channel said the strike killed seven and wounded 40 in a central marketplace in Taiz, minutes after reporting that a Saudi fighter jet had targeted the area.

Following years of relative calm, Yemen's war reignited in July, against the backdrop of the widening Middle East war.

Fighting intensified in September as the Houthis launched a lightning offensive that saw them seize Yemen's entire Red Sea coast, including the Bab al-Mandab Strait, a vital shipping lane.

The Houthis have in parallel launched a blockade on Saudi energy exports, already choked off by Iran's closure of the Strait of Hormuz.

— AFP

US Treasury Secretary Scott Bessent said on Saturday that he had sent envoys around the world to pressure countries to economically isolate Iran, hailing new restrictions targeting the country's airlines and banks.

"At my direction, teams were dispatched across the globe to engage with countries and demand action against the Iranian regime," he said on X. "These efforts are delivering results."

Bessent noted that Turkey and Oman have halted incoming flights from private carrier Mahan Air, while the United Arab Emirates has stopped all flights by Iranian airlines.

Dubai, the UAE's commercial hub, is a major destination for Iran's carriers, with multiple daily flights, a large Iranian community and close business links.

— AFP

Iran's Revolutionary Guards Navy said on Sunday it had seized a US Remus 600 autonomous underwater vehicle operating in the Strait of Hormuz and which it said was conducting espionage, according to state media.

The Guards said the vehicle had been captured using intelligence and electronic warfare capabilities and was being examined by Iranian specialists to recover its data.

— Reuters

Iran's armed forces are prepared for any renewed U.S. attacks, state media quoted army spokesperson Mohammad Akraminia saying on Sunday, after US President Donald Trump said he rejected an Iranian proposal to reopen the Strait of Hormuz and end fighting.

Akraminia said Iran's armed forces were fully prepared for confrontation and warned that the US would suffer greater damage if it launched another attack on his country.

Separately, Iranian Army Commander-in-Chief Amir Hatami said the war was at a critical and decisive stage, adding that Tehran would not accept a situation in which it was unable to trade while foreign powers used the region's strategic waterways.

"If Iran cannot trade, if Iran cannot live, no one will be able to trade or live. The Strait of Hormuz is the strait of our dignity and honour, and it will not be allowed for the country's enemies to use this major logistical chokepoint while the Iranian people are deprived.”

— Reuters

Iran said it’s awaiting a definitive US response to a seven-day proposal for reopening the crucial Strait of Hormuz but won’t soften its conditions, after President Donald Trump voiced his rejection.

Police have evacuated homes near a US air base in England and arrested several men over suspected explosives offences.

Investors will focus on geopolitical developments, crude oil prices, bond yields and macroeconomic data announcements to determine market trends during the holiday-shortened week ahead, analysts said.

Security measures at a US air base in southwest England have significantly increased in recent days, with roadblocks and armed police preventing access and emergency vehicles parked nearby.

US Energy Secretary Chris Wright highlighted the administration's policy focus on expanding domestic oil, natural gas, refining capacity, and grid infrastructure to sustain economic expansion and counter geopolitical disruptions.

The leader of Hamas brushed aside the possibility of change from Israel's upcoming election in an interview on Saturday, saying he expected Israelis to campaign off Gaza's "blood".

Iranian Foreign Minister Seyyed Abbas Araghchi on Saturday (local time) said that Tehran had witnessed the first reaction from the US President on its proposal but was waiting for mediators to convey the "definitive opinions" before making a decision.

Iran stood firm Sunday on its conditions for reopening the Strait of Hormuz, despite US President Donald Trump's rejection of the proposal that had created some optimism for breaking the Mideast war stalemate.

Parents across Riyadh received emails from schools on Sunday announcing a last-minute plan to shift to remote learning for a week, according to messages seen by AFP.

Israel's upcoming elections are being followed closely by its regional neighbours, who are aware that any outcome will have ramifications far beyond the country's borders.

In his Likud party's campaign launch this month, Prime Minister Benjamin Netanyahu repeated his refrain that he "has changed the face of the Middle East" and vowed to continue doing so.

US Treasury secretary Scott Bessent has said that the US' economic pressure campaign on Iran is delivering results with several countries, including those in West Asia, restricting business ties with the Islamic Republic.

Iranian President Masoud Pezeshkian said that Iran will remain resolute and not retreat in the face of the United States and Israel, as US President Donald Trump rejected Iran’s proposal for a seven-day ceasefire and reopening of the Strait of Hormuz.