Trump rejects Iran truce as US presses Lebanon on Hezbollah funding, Saudi-US stress Hormuz security
From diesel bans to Tether probes, war jitters ripple through world markets
President Donald Trump rejected Iran's seven-day truce offer on Monday but expects talks to continue, as mediators met Iranian Foreign Minister Abbas Araghchi and US envoys in New York on reopening Hormuz and nuclear concerns. Tehran denied showing nuclear "flexibility", said a blast-like sound near Qeshm Island was likely warning shots at vessels, and denied its Najaf flights had resumed. Wall Street fell, with the S&P 500 down 0.8 percent as yields climbed, while oil rose but closed off its highs. Washington pressed Lebanon to cut Iranian and Hezbollah funding, and a Senate report said Iran leans heavily on the Tether stablecoin. Saudi Arabia and the US stressed Hormuz and Bab al-Mandab security amid rising Houthi attacks, and the UAE President received Netanyahu. Britain is in talks with the US over Trump's threatened diesel export ban, and Trump denied offering to sell weapons to China's Xi. Follow our live coverage for the latest.
Wall Street stocks retreated Monday as US Treasury yields continued to climb after US President Donald Trump rejected Iran's offer of a seven-day truce.
Oil prices also rose, although crude finished well below session highs as traders were heartened that Trump also signaled he expects talks to continue.
Markets also digested a report from Iranian state media that Iran's Foreign Minister Abbas Araghchi was set to meet on Monday with Qatari mediators in New York.
Wall Street indices spent the entire session in the red, with the broad-based S&P 500 closing down 0.8 precent.
"The ongoing Washington and Tehran impasse is roiling markets to start the week, as yields soar further into the nosebleeds," said Jose Torres of Interactive Brokers. "The geopolitical premium bolstering oil prices is worrying Wall Street that the Fed will meaningfully tighten monetary policy to constrain inflation."
Saudi Foreign Minister Prince Faisal bin Farhan and US Secretary of State Marco Rubio underscored the need to safeguard maritime security and freedom of navigation through the Strait of Hormuz and Bab al-Mandab during talks in Washington on Monday, the Saudi Foreign Ministry said.
The ministers reviewed strategic ties and discussed regional developments, including the escalating conflict in Yemen, where Houthi forces have intensified attacks on Saudi territory and shipping lanes, according to Saudi and international reports.
Both sides reaffirmed support for diplomatic efforts to resolve regional crises and ensure the flow of global trade, the ministry added.
US Treasury Secretary Scott Bessent pressed Lebanon’s leadership to take “proactive steps” to dismantle Iranian and Hezbollah financial networks during a Monday meeting in Washington with Prime Minister Nawaf Salam and Finance Minister Yassine Jaber, according to a Treasury readout.
Bessent also underscored the need for swift financial-sector reforms to restore confidence in Lebanon’s battered banking system, as Beirut seeks to revive negotiations with the International Monetary Fund and secure World Bank support.
Salam highlighted progress on banking reforms and asked for US help in IMF talks and broader economic recovery, the prime minister’s office said.
Get updated faster and for FREE: Download the Gulf News app now - simply click here.
The United Kingdom is reportedly holding urgent talks with US authorities over President Donald Trump’s threat to halt American diesel exports, as London prepares contingency measures to cushion a potential supply shock, Chancellor John Healey. Healey, speaking on the sidelines of Labour’s annual conference in Liverpool, confirmed the government is “in discussions with the Americans” and has begun planning for a possible ban, including tapping national fuel stocks if needed.
A US Senate Democratic report released Monday says Tether’s dollar-pegged stablecoin USDT has become a “significant financial lifeline” for Iran’s shadow banking network.
Investigators analysed 846 crypto wallets sanctioned or targeted for seizure over links to Iran and regional proxies, finding that 84% transacted exclusively or nearly exclusively in USDT.
The report criticises Tether for failing to consistently freeze illicit wallets, particularly before 2024.
President Donald Trump said that US officials had spoken with mediators involved in indirect talks with Iran, as Washington and Tehran weigh further diplomacy amid the war. Speaking to reporters in the Oval Office, Trump said, “We’re going to win. As far as I’m concerned, it’s going to be one way or the other. It’s going to go pretty quickly.”
The remarks came as Qatari mediators held separate meetings with Iranian Foreign Minister Abbas Araghchi in New York and with US envoys, discussing proposals to reopen the Strait of Hormuz and address nuclear concerns. Trump has rejected Tehran’s latest truce plan but signaled talks could resume soon.
Iran’s state-run IRNA news agency reported late on Monday that residents on Qeshm Island heard an explosion-like sound coming from the direction of the sea, with no apparent impact on the island. State TV later cited local sources as saying no strikes or explosions had occurred on Qeshm, describing the noise as similar to previous nights and likely warning shots at vessels violating waterway rules. Reuters and other outlets recast earlier reports, noting there was no immediate independent confirmation of the sound’s cause.
Iran’s Civil Aviation Organisation denied reports that flights between Iran and Iraq’s Najaf had resumed, saying no approval had been issued for Iranian carriers. Spokesman Majid Akhavan said reports of resumed Iranian flights were false. The clarification followed reports that Iraqi Airways had restarted flights between Najaf and Iranian airports. Iraq’s flag carrier has resumed the route, while Iranian airlines remain restricted amid US sanctions and concerns over penalties on aviation providers.
An unnamed Iranian official denied reports that Tehran had shown "flexibility" on its nuclear position, telling state-run Press TV via Telegram on Monday that no discussions were underway on the issue.
The official said the US was “trapped” over the Strait of Hormuz and was raising the nuclear file to divert attention, adding that Iran’s nuclear stance had not changed.
The remarks contradict a US official’s account to CNN that Iran had signaled nuclear flexibility and that Washington was holding “positive and constructive discussions” through mediators, with President Donald Trump open to sanctions relief and releasing frozen funds if Tehran made “concrete progress.”
Donald Trump on Monday denied asking Xi Jinping if he would like to buy American weapons, after the US ambassador to Beijing said the US president made the offer to his Chinese counterpart.
"I've never heard of that one," Trump told reporters in the Oval Office when asked about the comments made by envoy David Purdue.
"They'd probably like to buy it because we do make better equipment than them, so maybe it's a good idea. But we didn't discuss it."
President His Highness Sheikh Mohamed bin Zayed Al Nahyan received Israeli Prime Minister Benjamin Netanyahu, who visited the UAE on Sunday.
During the meeting, the two sides discussed bilateral relations between the UAE and Israel and ways to strengthen and further develop them.
Sign up for the Daily Briefing
Get the latest news and updates straight to your inbox
Network Links
GN StoreDownload our app
© Al Nisr Publishing LLC 2026. All rights reserved.