LIVE: Tehran warns ‘we have not even begun’ after Hormuz battle

Yesterday Iran said the US has responded to its latest proposal to end the war.

According to Iranian media agencies, Tehran has called for the the US to lift economic sanctions, end the naval blockade, withdraw forces from the region and cease all hostilities, including Israel’s operations in Lebanon.

Iranian officials said they were reviewing the US response, though foreign ministry spokesperson Esmail Baghaei told reporters that changing demands made diplomacy difficult. He did not give further details.

Iran has claimed its proposal does not include issues related to its nuclear programme and enriched uranium – a driving force in tensions with the US and Israel.

Iran wants other issues resolved within 30 days and aims to end the war rather than extend the ceasefire.

Donald Trump has expressed doubts over the weekend that the proposal would lead to a deal.

by Angharad Carrick, Business News Editor

The FTSE 100 opened lower this morning as tensions in the Middle East ratcheted up over the weekend, pushing oil prices higher.

London’s main index opened around 1 per cent – or 100 points – lower at 10,259, dragged lower by the rising price of Brent crude and playing catch-up with Monday’s selloff.

The price of a barrel has soared since the start of the conflict, reaching as high as $126 at one point last week. Prices have since retreated, before climbing 6 per cent on Monday to $114.44 a barrel.

This morning, Brent held onto most of Monday’s gains, slipping just 1 per cent to around $113 a barrel.

The already fragile ceasefire came under further pressure as the US and Iran exchanged fire in the region, and the UAE came under fresh attack.

Thailand has today approved a $12.2 billion emergency borrowing package to cushion the economic impacts of the Iran war – one the largest loans in decades.

The cabinet said the funding would be used to boost domestic spending and ease economic hardships as inflation rises and growth slows, with the finance ministry last week cutting its GDP growth forecast to 1.6 per cent, from 2.4 per cent last year.

The loan of about 400 billion baht will be deployed from June to September, and include aid for more than 20 million low-income people under the government’s ‘Thais Helps Thais’ scheme to ease living costs.

It will also be used to support alternative energy, Finance Minister Ekniti Nitithanprapas said at a news conference.

The US-Israel war against Iran that began in late February has roiled global energy prices, resulting in rising prices for oil and gas, shipping and consumer goods.

Iranian Foreign Minister Abbas Araghchi will travel to Beijing for talks, the foreign ministry said, amid stalled negotiations with the United States to end the Middle East war.

‘During the visit, he will meet his Chinese counterpart (Wang Yi) to discuss bilateral ties and regional and international developments,’ the ministry said in a brief statement.

It comes as US Treasury Secretary Scott Bessent accuses China of ‘funding’ Iran as he urged Beijing to help Washington reopen the Strait of Hormuz.

Donald Trump is expected to visit the China next week for a meeting with his counterpart Xi Jinping.

Here are the latest developments in the Middle East war as Iran and the US remain in a standoff over the Strait of Hormuz.

• Iran’s chief negotiator in talks with the United States, Mohammad Bagher Ghalibaf, warned that his country had ‘not even started’ and that US actions in the Strait of Hormuz had put shipping at risk
• Stocks sank across Asian markets as a fresh spike in Middle East tensions fanned fears over the fragile US-Iran ceasefire, and oil prices fell back slightly after gains on Monday
• Denmark’s freight giant Maersk said one of its ships had sailed through the Strait of Hormuz under US escort, adding the transit was completed ‘without incident’
• India condemned a drone strike on an energy facility in the United Arab Emirates in which three Indians were injured, urging uninterrupted access to the Strait of Hormuz
• South Korea said it would ‘review its position’ on joining US operations in the Strait of Hormuz after Donald Trump urged Seoul to take part following an apparent Iranian attack on one of its ships
• UK Prime Minister Keir Starmer called for de-escalation in the Middle East after the United Arab Emirates reported attacks for the first time since a truce was declared nearly a month ago
• Iran had ‘no pre-planned programme’ to attack oil facilities in the United Arab Emirates, Iranian state TV quoted a military official as saying, after the UAE blamed the Islamic republic for a drone strike at an energy installation in Fujairah
• The United Arab Emirates’s education ministry ordered all schools to return to remote teaching for the remainder of the week following fresh attacks on the country by Iran
• A top US admiral said his country’s forces had destroyed six Iranian boats and shot down missiles and drones fired at US Navy and commercial vessels by Tehran’s military, though Tehran denied any boats had been sunk
• President Donald Trump played down tensions after US warships entered the Strait of Hormuz, saying Iran had ‘taken some shots’ but caused no harm apart from damage to a South Korean vessel

by Mark Duell, Deputy Chief Reporter (Digital)

Airlines have cut two million seats from their schedules for this month within the past two weeks as concerns intensify over jet fuel shortages caused by the Iran war.

The total number of seats available on all carriers in May has fallen from 132million to 130million between mid and late April, according to analytics firm Cirium.

Gulf airlines such as Qatar, Etihad and Emirates have been worst-hit by airspace closures and airport disruption in the Middle East along with rising fuel costs.

European operators such as Lufthansa, Air France-KLM and SAS have also reduced schedules – while US airline Spirit has gone out of business following the closure of the Strait of Hormuz, through which 20 per cent of global crude supply passes.

Lufthansa had the most seat cancellations after cutting 20,000 flights between May and October, with Air China second after axing internal services, reported the FT.

Sir Keir Starmer has said attempts by Iran or any other countries to incite antisemitism in Britain ‘will not be tolerated’.

Speaking at a roundtable in Downing Street, the UK Prime Minister listed a series of security measures put in place to protect the Jewish community, before adding:

Security is essential, but that is not enough. We must also deal with the forces that drive this hatred in the first place, so we’re confronting them directly.

One of the lines of inquiry is whether a foreign state has been behind some of these incidents. We’re investigating, of course, all the possibilities and we’re clear that these actions will have consequences if that proves to be the case.

Our message to Iran, or to any other country that might seek to foment violence, hatred or division in society, is that it will not be tolerated. That is why we passed legislation to tackle these malign threats.

Iraq is offering huge discounts to oil purchasers if their tankers are willing to transit the Strait of Hormuz to collect the barrels.

According to a report by Bloomberg, Iran is offering barrels of its flagship Basrah Medium crude for as much as $33.40.

In comparison, Brent North Sea Crude was valued at $113.71 a barrel earlier today.

But buyers will have to navigate the strait to collect the oil which witnessed an uptick in violence yesterday as the US and Iran traded attacks.

The US and Iran’s fragile truce is in jeopardy today as the nations wrestle for control of the Strait of Hormuz.

American military officials said six Iranian small boats were destroyed yesterday after Donald Trump sent the navy to escort stranded tankers through the strait in a campaign he called ‘Project Freedom’.

The strait is a vital thoroughfare for global supplies of oil, fertiliser and other commodities that has been virtually closed since the US and Israel began attacks on Iran on February 28, causing price rises around the world.

Several merchant ships in the Gulf reported explosions or fires on Monday, and an oil port in the United Arab Emirates, which hosts a large US military base, was set ablaze by Iranian missiles.

Iran’s Islamic Revolutionary Guard Corps has effectively closed the narrow waterway under threat of mines, drones, missiles and gunboats. The US has responded with a blockade of Iranian ports.

Iranian Foreign Minister Abbas Araqchi said Monday’s events showed there was no military solution to the crisis. He said peace talks were progressing with Pakistan’s mediation, and warned the US and the UAE against being drawn into a ‘quagmire’.

South Korea has said it will ‘review its position’ on joining US operations in the Strait of Hormuz following an apparent Iranian attack on one of its ships.

An explosion and fire were reported on a South Korean cargo vessel on Monday in the key waterway, which has been effectively blocked since the war erupted on February 28.

South Korea’s foreign ministry said Tuesday that all 24 crew members aboard the stricken HMM Namu – including six South Korean nationals – were unharmed.

Trump said the incident should prompt South Korea to join American efforts to guide stranded ships through the strait, a major artery for the fuel exports that Seoul relies on.

On Tuesday, South Korea’s defence ministry said it would ‘carefully review our position’, but did not commit to any change.

Donald Trump has said he’s now ‘torn’ on Iranians taking to the streets to topple the regime following the huge loss of life earlier this year and added they ‘have to have guns’.

Speaking on The Hugh Hewitt Show yesterday, the President said as soon as Iranian protesters are armed ‘they’ll fight as good as anybody there is’.

Asked by the host whether he wanted to see Iranians out on the streets like they were in January this year, Trump said:

You can’t have an unarmed population against people with AK-47s and stand there, even if you have 250,000 people.

So, you started it off by asking me would I like to see them? And I’m very torn on it, because they lost 42,000 people in the first two weeks. I don’t really want to see that.

He continued:

I don’t really want to see that. They have to have guns. And I think they’re getting some guns. As soon as they have guns, they’ll fight as good as anybody there is.

Trump later insisted the US holds ‘all the cards’ in the conflict.

Denmark’s freight giant Maersk has said one of its ships successfully sailed through the Strait of Hormuz under US escort.

The ship, US-flagged Alliance Fairfax, had been stuck in the Gulf since the war erupted in February and was ‘offered the opportunity’ to leave accompanied by the US military.

‘The vessel subsequently exited the Persian Gulf accompanied by US military assets’ on May 4, the company said in a statement.

‘The transit was completed without incident, and all crew members are safe and unharmed.’