US-Iran talks: Washington seeks denuclearisation deal as Europe weighs Hormuz role

Iran was likely behind a wave of recent cyberattacks on municipal water systems across the US, NBC News reported on Tuesday, citing two people familiar with the incidents.

“Malicious cyber actors” have attacked municipal water systems in at least seven states, according to the FBI. Officials in metropolitan Atlanta said they are investigating “unauthorized cyber activity” that may have disrupted water operations.

US President Donald Trump and Qatar's Emir Sheikh Tamim bin Hamad Al Thani discussed efforts to ease tensions between Washington and Tehran during a phone call on Tuesday.

The leaders reviewed diplomatic efforts to narrow differences between the United States and Iran and improve the prospects of a lasting negotiated settlement.

Trump praised Qatar's role in facilitating dialogue between the two sides, while Sheikh Tamim stressed the importance of continued diplomacy and urged all parties to honour the commitments outlined in the US-Iran memorandum of understanding.

They also discussed broader regional and international developments and reaffirmed the importance of continued coordination between their countries.

Iran is offering Chinese and Russian vessels full exemptions or preferential terms from proposed transit fees in the Strait of Hormuz to draw Beijing and Moscow deeper into the confrontation over the waterway, i24NEWS reported on Tuesday, citing Western intelligence officials.

Other countries, particularly those aligned with the US, would be required to pay, the report said.

According to the assessment, the incentives were designed to deepen China and Russia’s economic and strategic stake in preserving Iranian control over the strait, the report added.

Intelligence officials also said Iran’s supreme leader, Mojtaba Khamenei, viewed Hormuz as an Iranian asset rather than an open international shipping lane, a more hardline approach than that of his late father, former Supreme Leader Ali Khamenei.

The report said the policy, if implemented, would further entrench Chinese and Russian interests in Iran’s control of the strait and reduce international pressure on Tehran.

Even a bilateral agreement between Iran and Oman would not be enough to restore normal shipping through the Strait of Hormuz unless the United States halts its attacks and meets Tehran’s conditions, the IRGC-affiliated Fars News reported citing a source close to Iran’s negotiating team.

Iran and Oman are discussing a proposed central shipping corridor intended to address both Iranian sovereignty concerns and Omani interests, the source said, accusing the United States and some regional partners of obstructing the talks.

But the source said any Iran-Oman arrangement would not, by itself, create the conditions needed to secure and fully reopen the waterway, arguing that it had been closed because Washington violated previous commitments.

“Conditions in the strait will not return to what they were a month ago” without an end to US actions against Iran and the fulfillment of Tehran’s demands, the source added.

The source said Tehran was negotiating only with Muscat over future Hormuz arrangements.

Iran has demanded the right to collect transit fees, guarantees against renewed attacks, an end to the US naval blockade and relief from oil sanctions as part of negotiations over shipping through the Strait of Hormuz, the Wall Street Journal reported, citing regional mediators.

Under the proposal being discussed, vessels bound for the Arabian Gulf would enter through Iranian waters, while ships leaving would pass through Omani waters without paying fees, the mediators said.

Iranian diplomats initially welcomed the proposal because it preserved some control over the strait, but Tehran later sought fees that could potentially be shared with Oman. The US and regional governments rejected the demand and sought guarantees that Iran and its proxies would not threaten their territories, the report added, citing senior regional officials.

Iran’s Foreign Ministry spokesman Esmaeil Baghaei has said Iran and Oman are continuing talks aimed at ensuring the safe flow of traffic through the Strait of Hormuz, with discussions focused on designating safe inbound and outbound lanes.

In comments carried by Iran’s IRIB broadcaster, Baghaei said the talks have “been assessed positively at both the technical and political levels” as Iran works to develop the needed “mechanisms” to manage traffic in the strait.

US Central Command said in a post on X that American forces have taken action against dozens of commercial vessels in the region as part of ongoing maritime security operations.

Union Minister of Ports, Shipping & Waterways, Sarbananda Sonowal tweets, "Indian MSV Faize Noore Oliya has been hit by a projectile near Yemeni waters, causing the vessel to capsize and sink.

India strongly condemns this unprovoked attack on the defenseless mechanised sailing vessel. The safety of our people is our supreme priority & I am relieved to inform that ALL 14 seafarers (including 13 Indians) have been safely rescued by the Yemeni Coast Guard and brought to the Port of Mokha.

I have instructed the Director General Maritime Administration (DGMA) to take immediate steps in coordination with all agencies to ensure the absolute security of Indian seafarers in the region and provide all necessary assistance to the rescued crew."

Talks between Iran and Oman on shipping routes through the Strait of Hormuz have entered a “new phase,” Iran’s state-run Press TV reported on Tuesday, citing an informed source.

The source said progress had been made in the discussions despite what it described as US “obstruction”.

A potentially significant shift may be emerging in negotiations over the Strait of Hormuz.

After weeks of insisting that no foreign country would be allowed to participate in demining operations, Iran is now reportedly considering permitting European nations to remove naval mines from the strategic waterway as part of an arrangement to restore commercial shipping and revive diplomacy with the United States, Bloomberg reported.

If confirmed, it would represent one of Tehran's most notable concessions since the latest crisis erupted.

Iraq exported over 30 million barrels of crude oil in one month through the strategic Strait of Hormuz, data from the maritime tracking firm Kpler showed on Tuesday.

Before the Middle East war, which choked shipments through the vital waterway, Iraq produced around four million barrels per day, and exported an average of 105 million barrels per month, mostly from its Basra oil terminal via Hormuz.

Around 30 million barrels of Iraqi crude oil passed through Hormuz between July 4 and August 4, according to vessels detected by Kpler.

Ali Nizar, the head of Iraq's State Organisation for Marketing of Oil (SOMO), said in a TV interview Monday that Iraq exported in July "35.5 to 37 million barrels" via Hormuz.

Another seven million barrels were exported through an Iraq-Turkey pipeline to the Turkish port of Ceyhan.

US Secretary of State Marco Rubio said Washington's long-term objective in negotiations with Iran is the country's "denuclearisation," while efforts continue to improve maritime security in the Strait of Hormuz.

Speaking at the White House, Rubio said the strait remains open and commercial vessels are continuing to transit the vital waterway. He added that the US is engaged in discussions involving Iran and Oman on measures to allow more ships to pass safely in the near term, alongside broader negotiations aimed at a long-term agreement.

Rubio described the "denuclearisation of Iran" as the "ultimate deal" sought by Washington.

Lebanon and Israel held a fresh round of US-sponsored talks in Rome on Tuesday, with Beirut seeking Israel's phased withdrawal from the country's south.

Convoys carrying delegations from the two countries arrived in the morning to the US embassy in the Italian capital, where discussions are scheduled to run until Thursday.

At negotiations in Washington in June, Israel and Lebanon agreed to a framework deal that involves the disarmament of Hezbollah, a gradual withdrawal of Israeli forces from Lebanon's south and the deployment of the Lebanese army to the region, starting in test areas known as "pilot zones".

This week's negotiations are the seventh round of Washington-mediated talks since Hezbollah drew Lebanon into the Middle East war in March with rocket fire at Israel in support of its backer Iran.

Oil prices tumbled Tuesday after a top US official said Washington could soon reach a deal with Iran to reopen the Strait of Hormuz, easing concerns over crude supply disruptions that have sent prices soaring in recent months.

The main US oil contract, West Texas Intermediate, dropped five percent to $76.32 a barrel, while the international benchmark Brent North Sea crude fell back below $80 a barrel.

Qatar said mediators are focused on preventing further escalation, reopening the Strait of Hormuz and restarting diplomacy.

Qatar's Foreign Ministry spokesperson Majed Al Ansari said the immediate goal is to "reopen the door for diplomacy" between the parties, stressing that mediators want to avoid a major regional escalation.

Treasury Secretary Scott Bessent said that the United States could reach a deal with Iran to reopen the Strait of Hormuz by Wednesday, adding that this would stabilize energy prices.

"We are in talks with the Iranians, and I think there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalized position in this conflict," Bessent said Tuesday in an interview with CNBC.

Asked if a deal would allow Iran to charge a toll on shipping using the strait, Bessent said: "I think it would be freedom of movement."

Mediating nation Qatar said efforts for a diplomatic solution between the United States and Iran were ongoing but that there were no direct talks between the sides planned.

"We can confirm that the efforts are still ongoing with all parties," foreign ministry spokesman Majed Al Ansari told reporters, adding that negotiations were focused on "a short-term resolution that would help us reignite the talks and go back to the mediation efforts in its totality".

Mohsen Rezaei, military adviser to Iran’s Supreme Leader Mojtaba Khamenei, said Iran “will not stand idly by” and would not allow unauthorised routes through the Strait of Hormuz.

The warning comes after the US reimposed a naval blockade last month. US Central Command said it had redirected 44 commercial vessels, disabled two and boarded two under the operation.

Rezaei accused Washington of violating a June memorandum of understanding and called for the return of Iranian funds and an end to actions that create insecurity in the strategic waterway.

A crew member went missing while two others fought a fire aboard a vessel struck by an "unknown projectile" in the Strait of Hormuz, a British maritime security company said.

The incident added to mounting concerns over the status of US-Iran talks to end the war and resume traffic in the key waterway, as US President Donald Trump insisted it could reopen within hours while Iran said no talks with Washington were underway.

Earlier, United Kingdom Maritime Trade Operations (UKMTO) said the vessel reported being "hit by an unknown projectile" and authorities were investigating, adding that the incident occurred 20 nautical miles (37 kilometres) northeast of Al Khasab, Oman.

British maritime security company Vanguard Tech identified the ship as the Liberia-flagged bulk carrier MINOAN PIONEER, hit while transiting northbound through the Strait of Hormuz at 2:00 am (2200 Monday GMT).

"The projectile reportedly struck the engine room, while a fire broke out in the accommodation area. The crew are fighting the fire and require assistance, while the third engineer is reported missing," Vanguard said.

"The initial distress call was relayed by the nearby Panama-flagged tanker SURIANAME PROSPERITY (IMO: 9376740), which reported that MINOAN PIONEER had suffered a complete blackout and required assistance," the company added.

Hezbollah chief Naim Qassem said Tuesday that he had no objection to meeting with Syria's leadership, the first time he has expressed such a stance, after his Iran-backed group fought for Syria's former authorities that were ousted in 2024.

"There is no impediment to a public meeting between Hezbollah and the Syrian leadership at a time considered appropriate by both sides," Qassem said in a televised address, emphasising "the importance and necessity of positive, fraternal, cooperative relations".

Hezbollah for years fought in support of longtime Syrian ruler Bashar al-Assad in the country's civil war, and Syria served as a key supply route to Lebanon from Iran before the new authorities seized power in December 2024.

Iranian President Masoud Pezeshkian said Tehran has no intention of expanding the conflict but will defend the country's borders if threatened, according to state broadcaster IRIB.

Speaking at the launch of the second phase of Iran’s Family Medicine and Referral System National Plan, Pezeshkian stressed the need for national unity and strengthening the country from within.

“We must strive to build a society where the enemy cannot harbour greed, cannot infiltrate, and cannot divide or destroy our social fabric,” he was quoted as saying.

The chief executive of Saudi Arabia's state oil firm said Tuesday that attacks by Yemen's Houthi rebels had no real effect on the oil giant's production.

Strikes by the Iran-backed group had "no material impact on our capabilities", Aramco president and CEO Amin H. Nasser said during a call with reporters, adding that they included Houthi attacks in July which targeted the company's operations on the Red Sea coast and elsewhere.

Iran is in talks with Oman to set up a "single two-way route" through the Strait of Hormuz to allow ships through the strategic waterway, according to Tehran's Foreign Ministry Spokesperson Esmaeil Baqaei.

That arrangement would replace "the multiple separate lanes" that shipping used in the strait, he said at a news briefing in Tehran on Monday, according to the news agency IRNA.

The negotiations between the two countries on opposite sides of the strait "have focused on replacing separate northern and southern routes with a single intermediate corridor designed to accommodate the interests and security concerns of both coastal states", IRNA said, paraphrasing the spokesperson.

However, Oman's foreign ministry has been silent on the negotiations as of early Tuesday, neither publicly denying nor confirming they were afoot.

If they do agree on an arrangement for ships to resume sailing through the strait, it would be a boon for countries - and the world economy - that are strangled by the block on energy shipping.

But it would also sideline the US because, according to Tasnim news wire, Baqaei said no other country was involved in the talks.

Shipping activity through the key chokepoints of the Strait of Hormuz and Bab al-Mandeb remained largely unchanged at the start of the week amid uncertainty over US-Iran negotiations, Reuters reported.

Citing data from maritime traffic monitor Kpler, Reuters said 20 vessels — including 12 tankers and eight bulk carriers — passed through the Bab al-Mandeb Strait on Monday, connecting the Red Sea and the Gulf of Aden. The figure was unchanged from Sunday.

Mohsen Rezaei, a military adviser to Iranian Supreme Leader Mojtaba Khamenei, has warned that Tehran will not tolerate the continued US naval blockade of Iranian ports.

“If the blockade continues, American vessels and forces will face serious risks and casualties,” Rezaei said in a post on X, urging Washington to change its approach.

He added that Iran would “never permit the opening of a second corridor in the Strait of Hormuz”, as tensions continue over the strategic waterway.

The US renewed its blockade of Iranian ports in July after a memorandum of understanding signed between Tehran and Washington in June collapsed over disagreements on control of the Strait of Hormuz.

Israeli Prime Minister Benjamin Netanyahu has said he has “disagreements” with US President Donald Trump over a recent agreement with Hamas aimed at stabilising Gaza.

“There are disagreements with President Trump that I do not hide regarding the recent agreement with Hamas,” Netanyahu said.

He stressed that Hamas must be disarmed and Gaza must be demilitarised before any reconstruction efforts begin.

Netanyahu made the remarks after meeting Nickolay Mladenov, the lead envoy for Trump’s Board of Peace initiative.

Multiple US regulators announced fines Monday on an American affiliate of Swiss bank UBS for failure to uphold anti-money-laundering laws.

Characterizing UBS as a "recidivist financial institution" after falling short of its commitments under a 2018 settlement on the same issue, the US Treasury's Financial Crimes Enforcement Network (FinCEN) described Monday's $125 million civil penalty as the largest against a broker dealer for Bank Secrecy Act violations.

"Repeat violators of the Bank Secrecy Act jeopardize the integrity of our financial system, especially those that expose it to high-risk customers and activities without effective controls," said FinCEN Director Andrea Gacki.

The agency said UBS had failed to adequately monitor over 50,000 foreign currency wires with a value of more than $10 billion.

UBS also neglected to perform sufficient due diligence on high-risk customers with ties to Russia and Latin America. This meant the company "failed to timely report hundreds of suspicious transactions, thereby depriving law enforcement of critical information," FinCEN said.

A consent order requires UBS to work with a third party on a "lookback" audit addressing priority risk areas, such as "possible narcotics trafficking" connected to the US Southwest border, as well as Iran, Russia and Venezuela.

FinCEN's enforcement acted in parallel with the Commodity Futures Trading Commission, the US Securities and Exchange Commission and the Financial Industry Regulatory Authority.

The Swiss banking giant described the enforcement as bringing closure to a "legacy matter."

"UBS has cooperated fully with its regulators and has made significant investments to remediate and strengthen its AML (anti-money-laundering) program in line with leading industry practices," a company spokesman said.

A cargo vessel reported being struck by an unknown projectile about 20 nautical miles northeast of Al Khasab, Oman, near the entrance to the Strait of Hormuz, the United Kingdom Maritime Trade Operations (UKMTO) said late Monday.

UKMTO issued Warning 104-26, classifying the incident as an attack. The report, sourced to military authorities and dated August 3 with a report time of 2200 UTC (2am on Tuesday), stated that the vessel broadcast on VHF Channel 16 that it had been hit.

Authorities are investigating.

Vessels were advised to transit with caution and report any suspicious activity to UKMTO.

The warning provided no further details on the vessel’s identity, flag, the extent of any damage, whether there were casualties, or the type or origin of the projectile. No group immediately claimed responsibility.

The incident is the latest in a series of reported security events involving commercial vessels in waters near Oman’s Musandam Peninsula at the Strait of Hormuz, a critical chokepoint through which roughly one-fifth of global oil consumption typically passes.

Iranian Supreme Leader Mojtaba Khamenei may be trying to reduce President Masoud Pezeshkian and other “pragmatist” officials’ ability to influence the regime’s approach toward the United States in the current conflict, according to the Institute for the Study of War (ISW).

Senior cleric Mohammad Bagher Kharrazi, who has familial ties to Supreme Leader Mojtaba Khamenei, claimed on August 3 that Mojtaba formally warned Pezeshkian that he would accept Pezeshkian’s resignation if Pezeshkian tried to resign again, ISW reported in a "Special Report" published late on Monday (August 3, 2026).

"Mojtaba may have made this warning to prevent Pezeshkian from using the threat of his resignation to influence regime policies," the report stated.

Kharrazi’s comments come as a contingent of “pragmatist” regime officials has directly and indirectly questioned how much effort the regime should exert to control the Strait of Hormuz.

Former Iranian Foreign Affairs Minister Mohammad Javad Zarif, who played a central role in the 2015 Joint Comprehensive Plan of Action (JCPOA) negotiations, warned on August 3 that a prolonged closure or “short-term exploitation” of the Strait of Hormuz could generate an international consensus against Iran, including from the People’s Republic of China (PRC).

Exxon Mobil and Chevron delivered a powerful snapshot of the strange economics of the Iran war: the same global energy shock that has squeezed American drivers has produced a spectacular windfall for major US oil companies. Exxon Mobil and Chevron together earned about $26.5 billion in net income in Q2 2026, as war-driven disruptions pushed up crude prices and, even more importantly, tightened supplies of refined gasoline and diesel. Chevron reported a record $12.2 billion profit, while Exxon earned $14.5 billion, roughly double its year-earlier result and its strongest quarterly profit since the oil-price surge that followed Russia's invasion of Ukraine.

President Donald Trump said the United States would not allow Iran to impose fees on ships using the Strait of Hormuz, insisting navigation through the strategic waterway must remain free. He said Washington retained "total control" and warned that any attempt by Tehran to charge vessels would not be accepted.

Trump also referred to what he described as a potential US blockade capability, dismissing the prospect of Iran collecting transit fees. "There won't be charging," he said. "We are not talking about charging at all."

US President Donald Trump said Monday that negotiations with Iran were happening "right now," describing it as a final opportunity for Tehran to make a deal.

Talks are "going on right now," Trump told journalists at the White House, adding: "This is a last chance for them to sign a good document."

Day 154: Trump says Iran talks ongoing as IRGC warns of readiness

Day 153: Trump pauses strikes as Iran demands US honour deal

Day 152: Trump announces Hamas disarmament deal

Day 151: GCC condemns renewed Iranian attacks on Kuwait, Jordan

Day 150: US, Saudi forces strike Iran-backed militias in Iraq

Day 149: Trump holds 'positive' talks with Zelenskyy, Netanyahu

Day 148: Saudi air defences foil drone attack on oil facilities

Day 147: Iran says military ready as Netanyahu heads to US

Day 146: Iran says it earned $11.5b in oil sales during the war

Day 145: US-Iran war escalates as Tehran targets US bases in Gulf