Trump touts progress on Iran real as Hormuz strikes show risks

U.S. and Israeli jets struck a number of Iranian vessels in the Strait of Hormuz, hours after President Donald Trump had suggested negotiations with Tehran over an interim deal were progressing.

The attack took place south of Larak Island in the Strait of Hormuz, with several Iranian personnel killed, Iran's state-run Nour News reported, without providing further details. Trump had earlier said negotiations with Iran over an agreement to extend their ceasefire and reopen the strait were "proceeding nicely."

American forces hit missile launch sites in Iran and boats trying to place mines, U.S. Central Command said in a statement. The strikes were defensive and intended "to protect our troops from threats posed by Iranian forces," said spokesman Captain Tim Hawkins.

The renewed fighting underscores the fragility of the ceasefire between the U.S. and Iran, just as expectations were rising for a longer truce and the reopening of the Strait of Hormuz. The critical waterway has been all but closed since the U.S. and Israel attacked the Islamic Republic in late February, triggering an energy shock and a wave of global inflation.

Futures on the S&P 500 Index slipped in early Asia trading Tuesday after the latest developments, with the contract about 0.3% below the highs reached Monday, a U.S. holiday. West Texas Intermediate crude oil nudged higher to almost $91 a barrel, having touched $89.41 Monday.

Trump, in a Truth Social post on Monday, urged Saudi Arabia, Qatar and other countries to join the Abraham Accords and recognize Israel. In a later statement, the president said Iran's enriched uranium would either be handed over to the U.S. or, preferably, destroyed in Iran.

Trump is under pressure from Iran hawks in the U.S., such as Republican Sen. Lindsey Graham, who argue the emerging accord concedes too much to Tehran.

Trump's call for more states to join the Abraham Accords, under which the UAE and several other Arab countries formally recognized Israel in 2020, could help appease hawks. Saudi Arabia and Qatar have long said they will not recognize Israel until it grants statehood to Palestinians in Gaza and the West Bank or takes concrete steps toward that goal.

Meanwhile, Prime Minister Benjamin Netanyahu said Israel would intensify attacks on Iran-backed Hezbollah after striking sites in southern Lebanon. The escalation followed Hezbollah drone attacks that landed in Israeli territory and a rocket the Israeli air force intercepted.

Iran has demanded an end to hostilities against Hezbollah in Lebanon as part of any peace agreement with the U.S. Axios reported that a draft of a potential deal between the US and Iran includes language ending the war between Israel and Hezbollah.

Clashes between Israel and Hezbollah erupted in early March after the Lebanese militia fired rockets and drones into the country, saying the attack was to avenge the killing of Iranian supreme leader, Ayatollah Ali Khamenei, at the start of the Iran war. Both sides have been exchanging fire on a smaller scale since an April truce.

An Iranian delegation headed by Parliament Speaker Mohammad Bagher Ghalibaf traveled to Doha for consultations with senior Qatari officials on the negotiations. The Iranian central bank governor, Abdolnaser Hemmati, was part of the group and was set to discuss the release of frozen Iranian funds, the Fars news agency reported.

Al Arabiya also reported that Pakistan's army chief Asim Munir is headed to Doha. Pakistan has acted as an intermediary in talks between the U.S. and Iran.

An interim pact would help end a war that has killed thousands across the Middle East, mainly in Iran and Lebanon. The conflict has also increased pressure on Trump domestically, with many Americans opposing the war partly because of soaring fuel prices.

"It will only be a Great Deal for all or, no Deal at all - Back to the Battlefront and shooting, but bigger and stronger than ever before," Trump said. "And nobody wants that!"

A major sticking point in the talks is the U.S. demand for Iran to end its nuclear program and hand over highly enriched uranium that is near weapons-grade levels. The U.S. also wants Iran to commit to ceasing enrichment for around 20 years.

Iran is seeking guarantees from China before proceeding with a deal, Al Arabiya reported in a post on X, citing sources it didn't identify. The report said Tehran was demanding that highly enriched uranium be transferred to China.

The U.S. and Israel also still need to finalize key details of an extended ceasefire, including whether ships transiting the Hormuz Strait will be allowed free passage and how quickly billions of dollars of Iranian funds will be unfrozen.

Iran had maintained that it must be able to manage maritime traffic through the chokepoint, something the U.S., Arab states and Europe say cannot be allowed.

Iran has shifted away in recent days from the idea that it will charge tolls, with a foreign ministry spokesman saying on Monday that it will instead charge vessels for "navigation services."

Here's more on the Iran war:

-Abu Dhabi National Oil Co. has been quietly ferrying oil and gas shipments out of the Persian Gulf using its own fleet, apparently clearing both the Iranian navy and U.S. warships to reach energy-starved customers.

-A little-known Swiss trading company played a key role in the transit through the Strait of Hormuz of an oil supertanker whose stop-start journey captivated the oil market earlier this month, according to people familiar with the matter.

(Paul Dobson contributed to this report.)

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This story was originally published May 25, 2026 at 8:51 PM.