US-Iran war Highlights: Marco Rubio says progress made in Hormuz talks, but no final deal yet

Brent crude fell 5.3% to around $79 a barrel, its lowest level since July 10, as optimism grew over a possible US-Iran agreement to reopen the Strait of Hormuz.

Markets reacted to signs that an interim deal between Washington and Tehran could restore commercial shipping through the strategic waterway and reduce the risk of further conflict.

The Strait of Hormuz, which handled about 20% of global crude shipments before the war, has seen sharply reduced traffic amid military hostilities.

Attacks on commercial vessels and Iranian threats have heightened safety concerns for shipowners, insurers and crews.

Officials met in Rome to advance a US-mediated agreement on Israeli troop withdrawal from southern Lebanon and Hezbollah's disarmament.

Beirut wants the next "pilot zone" to be either Khiam or Bint Jbeil, both of which remain under Israeli control after heavy fighting.

US Ambassador to Lebanon Michel Issa warned against moving too quickly, saying a rushed withdrawal could endanger civilians.

The Rome meetings are focused on implementing the next phase of the June 26 agreement.

The first pilot zone was activated last month in an area that had seen Israeli fire but was not under Israeli occupation.

The deal aims to gradually replace Israeli forces with the Lebanese Army while advancing efforts to disarm the Iran-backed Hezbollah group.

US Secretary of State Marco Rubio told reporters that discussions had advanced, although no final agreement had been reached.

"There’s been progress made in those talks, but not finality yet. We’re hoping that will happen very shortly," Rubio said.

According to the Associated Press (AP), Iran and Oman have made progress toward a deal to reopen the Strait of Hormuz, raising hopes of easing tensions in the Middle East.

AP reported that the emerging proposal would allow:

Ships entering the Persian Gulf to use an Iran-controlled route.

Outbound vessels to use an Oman-controlled route.

Service fees to be charged for maritime security and environmental protection.

Iran is considering allowing European countries to help remove sea mines from the Strait of Hormuz, marking a potential softening of its earlier stance against any foreign involvement, according to Bloomberg.

The move could become part of a broader agreement to normalize shipping through the strategic waterway and revive peace negotiations with the US.

The proposal could provide shipping companies and insurers with third-party assurance that the Strait of Hormuz is safe after more than five months of conflict.

The US Army has depleted much of its stockpile of precision long-range missiles during the five-month war with Iran, Reuters reported citing three sources familiar with the data.

The heavy use of these weapons has raised concerns about the US military's readiness for future conflicts.

The missiles in question are the Army Tactical Missile System (ATACMS) and the newer Precision Strike Missile (PrSM), both surface-to-surface weapons.

Two of the sources said the US has used "virtually all" of its available ATACMS and PrSM missiles in the conflict.

Saudi Arabia is seeking to contain a renewed conflict with Yemen's Houthi militants through behind-the-scenes diplomacy, Bloomberg reported, citing people familiar with the matter.

The kingdom aims to prevent clashes with the Iran-backed Houthis from disrupting its oil industry and broader economy.

Saudi Arabia has been holding indirect talks with the Houthis through Omani mediators.

Despite pursuing diplomacy, Riyadh is also preparing military options in case negotiations fail.

Brent crude fell below $80 a barrel for the first time in nearly a month.

The global oil benchmark dropped more than 4% amid growing optimism over a potential US-Iran diplomatic agreement.

Markets are betting that a deal could lead to the near-term reopening of the Strait of Hormuz, a key global oil shipping route.

Qatar said a draft proposal had been prepared to help end the US-Iran conflict.

US Treasury Secretary Scott Bessent also expressed optimism that an agreement with Iran could be reached soon.

The prospect of easing tensions in the Middle East boosted expectations of smoother oil flows through the Strait of Hormuz.

Qatar says mediation efforts to end the US-Iran conflict are making progress.

Foreign Ministry spokesperson Majed al-Ansari said diplomatic contacts have reached "very progressive stages."

Qatar, Pakistan and Oman are acting as key mediators between Washington and Tehran.

The three countries are coordinating closely to facilitate negotiations and exchange draft proposals.

In Yemen, Houthi rebels claimed responsibility for a drone strike targeting a "sensitive target" at Najran Airport in southwestern Saudi Arabia.

Houthi military spokesperson Brig. Gen. Yahya Saree said the attack was retaliation for what he described as repeated Saudi violations of Yemeni airspace over Saada and Hajjah provinces.

More than 100 Palestinians whose bodies were recovered from the rubble nearly three years after an Israeli airstrike were buried in Gaza City on Tuesday.

The 112 bodies were among more than 300 people killed in the November 22, 2023 Israeli strike on Gaza City's Sabra neighborhood.

Gaza's Civil Defense said rescue workers spent 136 hours digging through the rubble to recover the bodies over the weekend.

US Treasury Secretary Scott Bessent said Washington and Tehran could reach an agreement as early as Tuesday or Wednesday to reopen the Strait of Hormuz for unrestricted commercial shipping. Speaking to CNBC, he said the proposed deal would guarantee "freedom of movement" for commercial vessels through the strategic waterway.

Qatar said diplomatic efforts to resolve the US-Iran conflict are continuing, with Qatar, Oman and Pakistan coordinating talks and exchanging draft proposals between Washington and Tehran. Foreign Ministry spokesperson Majed Al Ansari said the three countries are working closely to facilitate negotiations.

Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani urged all parties to implement the US-Iran memorandum of understanding, including its provision guaranteeing freedom of navigation through the Strait of Hormuz, during a phone call with Russian Foreign Minister Sergey Lavrov.

Iran is discussing a temporary shipping arrangement with Oman that would give Tehran control over all inbound vessels entering the Strait of Hormuz, a senior Iranian source told Reuters. Under the proposal, Oman would clear outbound ships for exit only after notifying Iran, creating separate roles for managing traffic through the strategic waterway.

Saudi Aramco is rerouting crude exports through its East-West pipeline as Iran-related tensions have reduced shipping through the Strait of Hormuz to about one-tenth of pre-conflict levels. CEO Amin Nasser said the company is using the pipeline to maintain export flexibility.

Iranian lawmakers are gathering evidence to seek the impeachment of Foreign Minister Abbas Araghchi, senior lawmaker Hosseinali Hajideligani said. He criticised negotiations during the US-brokered ceasefire and warned that any agreement compromising Iran's sovereignty or territorial waters would violate the Constitution.

Tehran suffered the worst destruction of any Iranian province during the 40-day conflict with the US and Israel, with more than 50,000 homes damaged and 650 reported strikes, according to a municipal report. District 4 recorded the highest number of strikes, followed by Districts 21, 1 and 22.

Amin H. Nasser, the chief executive of Saudi Arabia’s state oil firm, Aramco, said that attacks by Yemen’s Houthi rebels had no real effect on their oil production.

Nasser told reporters on Tuesday that Houthi attacks had “no material impact on our capabilities.”

Nasser added that this includes Houthi attacks in July which targeted the company’s operations on the Red Sea coast and elsewhere.

Iran’s Foreign Ministry Spokesperson Esmaeil Baqaei has said that Tehran is in talks with Oman to set up a "single two-way route" through the Strait of Hormuz to allow ships.

The arrangement would replace "the multiple separate lanes" that shipping used in the strait, state news agency IRNA quoted Baqaei as saying.

According to Baqaei, the negotiations between the two countries on opposite sides of the strait "have focused on replacing separate northern and southern routes with a single intermediate corridor designed to accommodate the interests and security concerns of both coastal states."