Amid ongoing peace negotiations between the United States and Iran, tensions in the Middle East escalated further on Tuesday as Tehran demanded the release of $24 billion in frozen Iranian funds while fresh military confrontations threatened hopes of a ceasefire.
US Secretary of State Marco Rubio said it could take "a couple more days" to narrow down a possible peace agreement with Iran. However, just hours after the US Central Command confirmed launching fresh strikes in southern Iran, Iran's Islamic Revolutionary Guard Corps (IRGC) claimed it had downed an MQ-9 drone and fired at a US fighter jet that allegedly entered Iranian airspace.
The renewed military activity rattled global markets, pushing oil prices higher while dragging equities lower. Despite the volatility, Washington maintained optimism about securing a deal with Tehran. Rubio also warned that the strategic Strait of Hormuz would reopen "one way or another," underlining its importance for global energy trade.
Meanwhile, Iran's Supreme Leader Mojtaba Khamenei issued a fresh warning to Israel, claiming the country had a limited "existence" and would not survive beyond the next 15 years.
Peace hopes suffered another setback after Israeli Prime Minister Benjamin Netanyahu vowed to intensify strikes against Hezbollah targets in Lebanon. Israel said the offensive was necessary for national security, while Iran has repeatedly argued that the Lebanon conflict remains a major obstacle to any broader regional ceasefire.
Key developments in the US-Iran conflict
Fresh US strikes in Iran
The US Central Command confirmed carrying out new "self-defence strikes" on missile sites in southern Iran as well as boats allegedly attempting to lay naval mines. According to CENTCOM spokesperson Tim Hawkins, the operation was aimed at protecting American troops from Iranian threats.
Trump pushes Abraham Accords expansion
Amid the negotiations, Donald Trump urged countries including Saudi Arabia, Qatar, Pakistan, Egypt, Turkey, Bahrain and Jordan to join the Abraham Accords as part of a broader peace arrangement. While Bahrain and the UAE are already signatories, the accords continue to face criticism for not addressing the Israel-Palestine conflict adequately.
Israel intensifies Lebanon offensive
Netanyahu announced that Israeli strikes on Hezbollah infrastructure in Lebanon would intensify further. According to Israel, more than 70 Hezbollah-linked sites have been targeted since Monday. Evacuation orders have also reportedly been issued for 10 villages in southern Lebanon.
Iran condemns US actions
Iran's Foreign Ministry accused the US of violating the ongoing ceasefire through "aggressive acts" in Hormozgan province. In a strongly worded statement, Tehran labelled the US military as "terrorist" and warned that Iran would leave "no act of aggression unanswered."
Internet restrictions partially eased in Iran
Internet monitoring group NetBlocks reported a partial restoration of internet services in Iran after nearly 88 days of severe restrictions. The group described it as the "longest nationwide internet shutdown in modern history," though it remained unclear whether the restoration would continue.
However, Iran's judiciary later suspended a presidential body that had ordered the restoration of internet access. According to Iranian media outlet Mizan Online, the decision followed complaints filed against the Special Headquarters for Organising and Governing the Country's Cyberspace, a body created by President Masoud Pezeshkian in May.
