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Iran’s response to the US peace offering is deemed “unacceptable” by Trump.

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The 10-week confrontation, which has caused extensive damage in Iran and Lebanon, halted maritime trade in the Strait of Hormuz, and increased global oil costs, is expected to end soon after President Donald Trump rejected Iran’s answer to a US request for peace negotiations on Sunday.

Iran released a statement on Sunday that focused on ending the conflict on all fronts, including Lebanon, and on the safety of shipping through the blockaded Strait of Hormuz, according to Iranian state TV, days after the US made an offer in the hopes of resuming talks.

Trump disregarded the Iranian offering in a social media post just hours after it was made public.I recently read Iran’s purported “Representatives” answer. Without providing any information, Trump wrote on Truth Social, “I don’t like it—totally unacceptable.”

After the US and Iran were unable to come to an agreement, oil prices increased by US$3 per barrel.

According to official media, Iran’s plan emphasizes Iranian sovereignty over the strait and demands reimbursement for war damages.

According to the semi-official Tasnim news agency, it also demands that the US lift sanctions, halt its naval blockade, ensure that there are no more attacks, and lift its restriction on Iranian oil shipments.

Before beginning negotiations on more divisive topics, such as Iran’s nuclear program, the US had suggested ending hostilities.

Iran suggested diluting part of its highly enriched uranium and sending the rest to a third nation, according to unidentified sources cited by the Wall Street Journal.

According to a Pakistani official, Pakistan, which has been mediating the conflict, sent the US the Iranian response.

Hostile drones were spotted above numerous Gulf nations on Sunday, highlighting the threat still present in the area despite a month-old ceasefire in the fight and around 48 hours of relative calm.

However, according to data from marine analytics company Kpler, the QatarEnergy-operated carrier Al Kharaitiyat crossed the strait without incident and was en route to Pakistan’s Port Qasim. Since the US and Israel began the conflict on February 28, this was the first ship from Qatar to transit the strait carrying liquefied natural gas.

According to sources, Iran authorized the transfer, which provided Pakistan with some relief following a series of power outages brought on by a halt to gas imports, in order to foster trust between Pakistan and Qatar, another mediator.

Additionally, according to Tasnim on Sunday, a Panamanian-flagged bulk ship headed for Brazil that had earlier tried to cross the strait on May 4 did so using a route approved by Iran’s military.

Prior to his visit to China, Trump is under pressure to end the war.

There has been increasing pressure to draw a line under the war, which has sparked a worldwide energy crisis and poses an increasing threat to the global economy, as Trump is scheduled to visit China this week.

The tiny Strait of Hormuz, which previously carried one-fifth of the world’s oil supply, has become one of the main areas of pressure in the conflict because Tehran has largely prohibited non-Iranian shipping through it.

In comments broadcast on Sunday, Trump stated, “They are defeated, but that doesn’t mean they’re done,” when asked if combat operations against Iran had ended.

According to Israeli Prime Minister Benjamin Netanyahu, there is “more work to be done” to remove enriched uranium from Iran, demolish enrichment facilities, and deal with Iran’s ballistic missile capabilities and proxies.

In an interview with CBS News’ 60 Minutes, Netanyahu stated that negotiation would be the most effective approach to remove the enriched uranium, however he did not rule out using force.

Iran will “never bow down to the enemy” and “defend national interests with strength,” according to a social media post made by President Masoud Pezeshkian.

The threat to the region’s businesses and shipping waterways persisted despite diplomatic attempts to end a deadlock.

Qatar denounced a drone attack that struck a cargo ship from Abu Dhabi in its waters on Sunday, while the United Arab Emirates claimed to have intercepted two drones from Iran. Kuwait claimed that hostile drones that had infiltrated its airspace had been neutralized by its air defenses.

The UAE was attacked again on Friday, and there have been reports of intermittent battles between Iranian forces and US vessels in the strait. These are the worst flare-ups in fighting in and around the strait since a ceasefire started.

Despite an announcement on April 16 of a ceasefire mediated by the United States, fighting has also persisted in southern Lebanon between Israel and the militant organization Hezbollah, which is supported by Iran.

Hezbollah opened fire on March 2 in response to a US-Israeli attack on Tehran, rekindling hostilities between Israel and the Lebanese organization. On May 14, the most recent negotiations between Israel and Lebanon are scheduled to begin in Washington.

IRANIAN WARNING DRAW FOR INTERNATIONAL MISSION PREPARATIONS

The war is unpopular, according to surveys, and less than six months before the midterm elections, US voters are dealing with much increased petrol costs.

NATO partners have refused to send ships to open the Strait of Hormuz without a complete peace agreement and an officially mandated mission, demonstrating the lack of support the US has received from other countries.

At home, Trump has had to thwart attempts by Democrats in Congress to use the War Powers Act to compel an end to the conflict.The senior Democrat on the Senate Armed Services Committee, US Senator Jack Reed, said on Fox News’ Sunday Morning Futures program, “Donald Trump’s actions have made this situation much worse, and now he’s floundering around trying to figure out a way to get out of it.”

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IHC forms larger bench to hear plea against PTI’s Sept 27 protest

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The Islamabad High Court (IHC) has issued a written decision on a petition challenging Pakistan Tehreek-e-Insaf’s (PTI) scheduled September 27 protest and long march, while creating a three-member bigger bench to consider the matter.

The larger bench will comprise IHC Chief Justice Sarfraz Dogar, Justice Azam Khan and Justice Muhammad Asif. The bench is slated to hear the case on September 10.

Chief Justice Sarfraz Dogar issued a three-page written order from the last session and directed the chief secretaries and inspectors general of police of all four provinces to come before the court in person on Thursday.

PTI finalises backup protest plan if Minar-e-Pakistan demonstration is denied permission

The court also summoned the Islamabad chief commissioner, Islamabad IG and deputy commissioner in their personal capacity. The advocate generals of all four provinces and Islamabad have also been asked to assist the court in the proceedings.

The petition was submitted by a businessman who contended that PTI’s intended demonstration could disrupt citizens and economic activity in Islamabad. His counsel informed the court that legislation governing protests in the capital already exists and highlighted concerns about the likely use of government resources during the planned mobilisation.

During the previous session, the petitioner’s lawyer also referred to PTI’s 2024 protest and brought relevant remarks and newspaper reports before the court. He suggested that protests should not be utilized to exert pressure on governmental institutions and judges.

The court remarked that the subject was of substantial importance and, in view of its sensitivity, issued a notice to the Attorney General for Pakistan for help in the case. The court then determined that the dispute should be heard by a larger bench.

The plea came after PTI organized a September 27 rally and long march towards Islamabad. The party has said the mobilisation is focused at getting access to party founder Imran Khan for his family and personal doctors, as well as raising concerns regarding his legal and prison-related affairs.

The IHC has fixed the subject for further hearing on September 10, when the summoned officials are likely to appear before the three-member bigger bench.

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Iran says it caught US underwater drone in Strait of Hormuz

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Iran’s Revolutionary Guards said on Tuesday it has captured a U.S. uncrewed submarine at the entrance to the Strait of Hormuz, offering a rare insight at how underwater drones are being ​used in military operations.

Iranian state media reported the craft was a Dive-LD, a ​large autonomous underwater vehicle made by California defense firm Anduril. The 19-foot (5.8-metre) ⁠submersible can carry out duties like mine countermeasures, seabed mapping, intelligence collection and the ​inspection of undersea infrastructure such as cables and pipelines, the business has said. “We detained one ​of the most advanced, clever and unmanned submarines of the terrorist American army near the entrance to the Strait of Hormuz. This submersible is equipped with the latest technologies,” the Revolutionary Guards Navy said ​in a statement broadcast by Iranian state media.

In response, a Pentagon spokesperson revealed a ​underwater drone had “malfunctioned more than a day ago.” “It was surveying regional seas in support of ongoing operations. ‌The ⁠defective drone was an earlier model that neither collected sensitive data nor carried any classified sonar or radar technology,” the spokesperson stated.

Anduril confirmed the loss of one of its vessels, but minimized the seriousness of the incident. “Dive-LD is an attritable autonomous system, meaning it ​is built from the ​outset to operate ⁠in perilous conditions where loss of the vehicle is a predicted possibility,” a company representative stated.

The U.S. Navy is spending extensively in ​unmanned naval systems, including undersea and surface vehicles, as it seeks ​cheaper ways ⁠to monitor broad expanses of ocean, gather intelligence and track hostile ships and submarines without putting troops at danger.

According to Anduril’s website, Dive-LD can operate for up to 10 days ⁠without returning ​to base and is meant to dive to depths ​of as much as 6,000 metres (19,700 ft). Dive-LD units cost roughly $2.5 million each, U.S. military news site DefenseScoop ​reported in 2024.

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Dollar wobbles, oil’s dash to $100 chills sentiment, Yen stands big

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The Japanese yen was pinned near its best level since February on Wednesday, leaving the dollar on the ‌defensive as traders grappled with oil prices heading toward $100 a barrel amid an expanding war in the Middle East.

Iranian-backed Houthis in Yemen attacked several Saudi cities, drawing a U.S. partner further into a battle that has dragged on for more than six months, as U.S. forces struck multiple Iranian oil tankers and Iran threatened a U.S. station in Jordan.

Brent crude futures rose by more than 1.48% to $99.37 a barrel, weighing on global markets ahead of a U.S. inflation data on Friday that will set the stage for central bank meetings next week in the U.S. and Japan.

The currency market nudged the dollar down a touch in response, though some analysts said that was due to the yen’s swift rally over the past week.

The euro held constant at $1.1631 while the pound was last bought at $1.3546. ​The dollar index, measuring the U.S. currency against a basket of six major rivals, was at 98.15, near its lowest level in nearly two weeks.

OCBC strategists said the current increase keeps Fed policy implications from higher energy prices in focus, especially after last week’s robust U.S. payrolls report reignited expectations of another rate hike. “Higher oil and rates should help limit USD fall for now but we anticipate a more dramatic move will await confirmation from the impending inflation data,” they said in a note.

The yen has been under focus after its 4% surge in September that has altered the math for the popular carry trade in which investors borrow in yen at a low cost and invest in other currencies and assets yielding better interest.

The yen was stronger at 153.65 per dollar, close to the seven-month peak of 152.89 struck on Tuesday. The surge has been broad-based with the Japanese currency strengthening against the euro and sterling as well as favorite carry-trade targets such as the Mexican peso and Turkish lira.

The increase has been fueled by expectations of quicker tightening by the Bank of Japan and the return of offshore cash by Japanese investors and pressure from Washington for a higher yen.

Traders broadly expect the BOJ to hike rates by 25 basis points at its September 17-18 meeting but the rise will rest on if Governor Kazuo Ueda delivers hawkish comments and the wild card will be the Federal Reserve.Aninda Mitra, head of Asia macro and investment strategy at BNY Investments, stated “Much will depend on how the market prices in the Fed’s path of interest rates too.We estimate the Yen’s “fair value” to be in the 140’s and a further move to that area should not be a total surprise following what has clearly been an overshoot to the side of excessive Yen weakness.”

The Australian dollar gained 0.12% to $0.7225, just below a four-month high set in the previous session, in Pacific trade. The New Zealand dollar was up 0.16% at $0.5862.

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