Summary

Iran questioned the seriousness of American diplomacy on Saturday in the wake of renewed naval clashes in the Gulf, while keeping Washington waiting for a response to its latest negotiating position. US President Donald Trump had said on Friday that he was expecting Iran's response to Washington's latest proposal on a deal to extend a fragile truce and launch peace talks -- "supposedly tonight". But, if Iran did send the talks' Pakistani mediators a response, there was no public sign of this, and Tehran's Foreign Minister Abbas Araghchi called into question the reliability of the US leadership, in a call with his Turkish counterpart. "The recent escalation of tensions by American forces in the Persian Gulf and their numerous actions in violating the ceasefire have added to suspicions about the motivation and seriousness of the American side in the path of diplomacy," he said, according to an Iranian account of the call published by the ISNA news agency. In an incident on Friday, a US fighter jet fired on and disabled two Iranian-flagged tankers that Washington accused of challenging its naval blockade of Iran's ports. The US action prompted Iranian retaliatory attacks. An Iranian military official told local media the country's navy had "responded to the violation of the ceasefire and to American terrorism with strikes" and "the clashes have now ceased". The latest incident came after a previous flare-up overnight Thursday to Friday in the Strait of Hormuz, a vital international sea lane that Iran is seeking to control to extract tolls from foreign vessels and to wield economic leverage over the US and its allies. US Secretary of State Marco Rubio reiterated on Friday that it was "unacceptable" for Tehran to control the key oil route. Washington has sent Iran, via Pakistani mediators, a proposal to extend the truce in the Gulf to allow for talks on a final settlement of the conflict launched 10 weeks ago with US-Israeli strikes on Iran. Iran's foreign ministry spokesman Esmaeil Baqaei said Friday that the proposal was still "under review", according to ISNA. Iran has attacked sites in Qatar during the war, pointing to the wealthy emirate's role as host of a major US air base. Meanwhile, satellite images have shown that an oil slick is spreading off the coast of Iran's Kharg Island, a key oil export terminal for the Islamic republic. It was not immediately clear what had caused the apparent spill, which was located off the island's west coast and appears to cover more than 20 square miles (52 square kilometres), according to global monitor Orbital EOS. Kharg Island is at the heart of Iran's oil export industry, a lynchpin of the country's battered economy, and lies in the Gulf, far to the north of the narrow Strait of Hormuz. Following the start of the war on February 28, Iran largely closed the strait, throwing global markets into turmoil and driving up oil prices. The US later imposed its own blockade of Iranian ports in response. On Sunday, Trump announced a US naval operation designed to reopen the strait to commercial shipping, only to abandon it on Tuesday in favour of a return to negotiations. Saudi sources told AFP the kingdom had refused permission for the US military to use its bases and airspace for the Hormuz operation, with one saying Riyadh "felt it would just escalate the situation and would not work". Iran-backed Hezbollah launched missiles and drones at military bases in Israel in retaliation for a recent attack on Beirut and ongoing strikes in the south, where Lebanese authorities reported 11 people killed on Friday. The strikes come as Lebanon and Israel, officially at war since 1948, are to hold direct negotiations, which Hezbollah vehemently opposes, in Washington next week. (You can now subscribe to our Economic Times WhatsApp channel) US President Donald Trump had said on Friday that he was expecting Iran's response to Washington's latest proposal on a deal to extend a fragile truce and launch peace talks -- "supposedly tonight". But, if Iran did send the talks' Pakistani mediators a response, there was no public sign of this, and Tehran's Foreign Minister Abbas Araghchi called into question the reliability of the US leadership, in a call with his Turkish counterpart. "The recent escalation of tensions by American forces in the Persian Gulf and their numerous actions in violating the ceasefire have added to suspicions about the motivation and seriousness of the American side in the path of diplomacy," he said, according to an Iranian account of the call published by the ISNA news agency. In an incident on Friday, a US fighter jet fired on and disabled two Iranian-flagged tankers that Washington accused of challenging its naval blockade of Iran's ports. The US action prompted Iranian retaliatory attacks. An Iranian military official told local media the country's navy had "responded to the violation of the ceasefire and to American terrorism with strikes" and "the clashes have now ceased". The latest incident came after a previous flare-up overnight Thursday to Friday in the Strait of Hormuz, a vital international sea lane that Iran is seeking to control to extract tolls from foreign vessels and to wield economic leverage over the US and its allies. US Secretary of State Marco Rubio reiterated on Friday that it was "unacceptable" for Tehran to control the key oil route. Washington has sent Iran, via Pakistani mediators, a proposal to extend the truce in the Gulf to allow for talks on a final settlement of the conflict launched 10 weeks ago with US-Israeli strikes on Iran. Iran's foreign ministry spokesman Esmaeil Baqaei said Friday that the proposal was still "under review", according to ISNA. - Oil slick -Qatar's prime minister, Sheikh Mohammed bin Abdulrahman Al Thani, met with US Vice President JD Vance in Washington on Friday and discussed the Pakistani-led efforts to broker a permanent peace. Iran has attacked sites in Qatar during the war, pointing to the wealthy emirate's role as host of a major US air base. Meanwhile, satellite images have shown that an oil slick is spreading off the coast of Iran's Kharg Island, a key oil export terminal for the Islamic republic. It was not immediately clear what had caused the apparent spill, which was located off the island's west coast and appears to cover more than 20 square miles (52 square kilometres), according to global monitor Orbital EOS. Kharg Island is at the heart of Iran's oil export industry, a lynchpin of the country's battered economy, and lies in the Gulf, far to the north of the narrow Strait of Hormuz. Following the start of the war on February 28, Iran largely closed the strait, throwing global markets into turmoil and driving up oil prices. The US later imposed its own blockade of Iranian ports in response. On Sunday, Trump announced a US naval operation designed to reopen the strait to commercial shipping, only to abandon it on Tuesday in favour of a return to negotiations. Saudi sources told AFP the kingdom had refused permission for the US military to use its bases and airspace for the Hormuz operation, with one saying Riyadh "felt it would just escalate the situation and would not work". - Lebanon front -A parallel ceasefire in Lebanon is also under strain. Iran-backed Hezbollah launched missiles and drones at military bases in Israel in retaliation for a recent attack on Beirut and ongoing strikes in the south, where Lebanese authorities reported 11 people killed on Friday. The strikes come as Lebanon and Israel, officially at war since 1948, are to hold direct negotiations, which Hezbollah vehemently opposes, in Washington next week. (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel) Prime ExclusivesInvestment IdeasStock Report PlusePaperWealth Edition