Iran says US options are 'impossible' war or 'bad deal'; US 'suffocating' Iran with blockade: Treasury chief

Treasury Secretary Scott Bessent said Sunday that the United States was "suffocating" Iran's leadership through an "economic blockade" launched alongside the US military offensive.

"This began with the order last March from President Trump on max pressure, and three weeks ago the President gave the order to Treasury myself to begin Economic Fury," Bessent said in a Fox News interview, referring to his department's initiative to supplement the Pentagon's "Operation Epic Fury."

"We are suffocating the regime, and they are not able to pay their soldiers. This is a real economic blockade, and it is in all parts of government - all hands on deck," he told the Sunday Morning Futures programme.

Both Iran and the United States have imposed restrictions on ships passing through the Strait of Hormuz, a crucial passageway for the energy industry exporting hydrocarbons from the Gulf.

While Iran has blocked most shipping in the passageway, the US Navy says it is blocking all ships heading to or from Iranian ports. Both sides are said to be negotiating as a fragile ceasefire holds.

A bulk carrier near the Strait of Hormuz has reported being attacked by multiple small craft, the British military's United Kingdom Maritime Trade Operations center said Sunday, marking at least two dozen attacks in and around the strait since the Iran war began.

All crew on the unidentified northbound carrier were safe after the attack off Sirik, Iran, east of the strait, the monitor said. Iranian officials have asserted that they control the strait and that ships not affiliated with the United States or Israel can pass if they pay a toll.

There was no immediate claim of responsibility for the attack, the first reported in the area since April 22, when a cargo shop reported being fired upon, the monitor said.

The seven OPEC+ countries, which previously announced additional voluntary adjustments in April and November 2023, namely Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman met virtually on 3 May 2026, to review global market conditions and outlook.

In their collective commitment to support oil market stability, the seven participating countries decided to implement a production adjustment of 188,000 barrels per day from the additional voluntary adjustments announced in April 2023. This adjustment will be implemented in June 2026.

The additional voluntary adjustments announced in April 2023 may be returned in part or in full subject to evolving market conditions and in a gradual manner.

The seven OPEC+ countries will hold monthly meetings to review market conditions, conformity, and compensation. They will meet on 7 June 2026.

Iran's latest proposal to the United States calls for issues between the countries to be resolved within 30 days and aims to end the war rather than extend the ceasefire, according to Iran's state-linked media.

President Donald Trump on Saturday said he was reviewing a new Iranian proposal but expressed doubt it would lead to a deal, adding on social media that "they have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years" since the Islamic Revolution there.

Iran's 14-point proposal, a rebuttal to a US nine-point plan, also calls for the US lifting sanctions on Iran, ending the US naval blockade of Iranian ports, withdrawing forces from the region and ceasing all hostilities, including Israel's operations in Lebanon, according to the semiofficial Nour News and Tasnim agencies, which have close ties to Iran's security organizations.

There was no mention, however, of Iran's nuclear program and its enriched uranium, long the central issue in tensions with the US and one that Tehran would rather address later.

As part of the initiative, Iran has also proposed launching a strategic dialogue with Arab neighbours and regional states to establish a comprehensive security framework for the Middle East.

Iran sent its reply via Pakistan, which hosted face-to-face talks last month between Iran and the United States.

Pakistan's prime minister, foreign minister and army chief continue to push negotiations and encourage the US and Iran to speak directly, according to two officials in Pakistan who spoke on condition of anonymity because they were not authorised to speak to the media.

German Foreign Minister Johann Wadephul said he on Sunday demanded that Iran reopen the Strait of Hormuz and give up its nuclear weapons programme in a telephone call with Iranian counterpart Abbas Araghchi.

"I emphasised that Germany supports a negotiated solution," Wadephul said in a post on X about the call. "As a close US ally, we share the same goal: Iran must completely and verifiably renounce nuclear weapons and immediately open the Strait of Hormuz, as also demanded by" US Secretary of State Marco Rubio.

Israeli strikes on southern Lebanon killed at least one person and wounded four rescuers on Sunday, the Lebanese health ministry said, as Israel maintained its attacks on the country despite a fragile truce in its war with Hezbollah.

In separate statements, the ministry said the a strike on Arabsalim killed at least one person and wounded three, including a child, and another strike on Srifa wounded five people including four rescuers from the Hezbollah-affiliated Islamic Health Committee, as the strike hit near one of their centres.

"The ministry reiterates its condemnation of these repeated attacks and recalls what is included in Article 19 of the Geneva Convention regarding the need to verify that medical facilities are safe from any danger caused by attacks in conflict zones, while what is happening is exactly the opposite."

Israel's military on Sunday issued new evacuation warnings in southern Lebanon for villages beyond the area it occupies.

An Israeli court on Sunday extended by two days the detention of two foreign activists from a Gaza-bound flotilla, who were brought to Israel for questioning, a rights group representing them told AFP.

The flotilla of more than 50 vessels had set sail from France, Spain and Italy with the aim of breaking Israel's blockade of Gaza and bringing supplies to the devastated Palestinian territory.

They were intercepted by Israeli forces in international waters off Greece early on Thursday, with Israel saying it had removed some 175 activists - two of whom were taken to Israel for questioning.

A Hezbollah lawmaker said Sunday that the group would be able to ‘thwart’ the objectives of direct negotiations between Lebanon and Israel.

Speaking at an event to honour killed Hezbollah fighters, Hassan Fadlallah said "these negotiations with all their results do not concern us, and we will not implement them".

"We have a free people and a steadfast resistance capable of thwarting all the objectives of these negotiations, which increase the sharp division in the country between the factions of our people and within the state itself," Fadlallah said.

Iran's Revolutionary Guards said on Sunday that the United States faced a choice between an "impossible" military operation or a "bad deal" with the Islamic republic.

In a statement carried by state television, the Guards intelligence organisation said that "Trump must choose between 'an impossible operation or a bad deal with the Islamic Republic of Iran'".

It cited what it described as a "shift in tone" from China, Russia, and Europe towards Washington as well as what it called an Iranian "deadline" over the US naval blockade.

Israel said on Sunday it had approved a multi-billion-dollar deal to acquire two combat squadrons of fighter jets from the United States.

The purchase includes a squadron of F-35 multi-role stealth fighters from Lockheed Martin and another of F-15IA warplanes from Boeing, the defence ministry said.

The plan aims to "ensure Israel's air superiority for decades to come," Defence Minister Israel Katz said in a statement.

"The F-35 and F-15IA acquisitions are central to the 'Shield of Israel' plan, which is designed to give the IDF (Israeli military) a lasting qualitative edge.

"Our mission is clear: to ensure the IDF has the tools, capabilities, and strength to operate anywhere, at any time," Katz added.

The F-35, a joint project between the US and a number of allies, is one of the world's most advanced military aircraft. Israel already operates several dozen of the jets.

Iran hanged a man on Sunday who had been convicted of involvement in the killing of a security forces volunteer during anti-government protests, the judiciary said.

"Mehrab Abdollahzadeh's death sentence was carried out this morning after completing the legal formalities," said the judiciary's Mizan Online website.

It said Abdollahzadeh, along with others, was arrested at the scene of street protests in the northwestern city of Urmia, where a farmer "was severely beaten by rioters and tragically martyred".

The farmer was attending the protests "as a volunteer force to ensure the security of the people", according to Mizan, which did not say when the incident took place.

Mizan published what it said was part of a confession by Abdollahzadeh in which he admitted to "hitting the officer several times in the face".

Abdollahzadeh was sentenced to death under the capital offence "corruption on earth", while two other defendants below 18 years of age were sentenced to imprisonment of unspecified terms.

An India-linked liquefied petroleum gas (LPG) tanker has successfully crossed the strategically vital Strait of Hormuz, marking a rare transit amid heightened tensions and severe disruptions to global energy flows.

The Marshall Islands-flagged vessel, Sarv Shakti, carrying around 45,000 tonnes of LPG commonly used as cooking fuel, was tracked moving into the Gulf of Oman after passing near Iran's Larak and Qeshm islands on Saturday, according to ship-tracking data.

The vessel is believed to be en route to India. Sarv Shakti, a very large gas carrier, has previously operated on routes between the Arabian Gulf and Indian ports.

It is currently broadcasting its Indian destination and crew details, a safety protocol widely adopted by vessels navigating the region since the outbreak of conflict involving Iran.

The vessel's journey is significant as it represents the first known passage by an India-linked tanker since a US-led blockade targeting ships associated with Iran began weeks ago.

US Secretary of State Marco Rubio will visit Rome and the Vatican this week, an Italian government source said Sunday, just weeks after a clash between Donald Trump and Pope Leo.

Rubio, who is a Catholic, is expected to meet Vatican Secretary of State Pietro Parolin and Italian Foreign Minister Antonio Tajani, the source told AFP.

Italian media reported that he would also meet Defence Minister Guido Crosetto during the Thursday-Friday visit.

The meetings come several weeks after US President Trump's extraordinary criticism of Pope Leo XIV over the Catholic leader's anti-war rhetoric.

Trump also dismissed Italian Prime Minister Giorgia Meloni - one of his closest European allies - as lacking courage after she defended the US pontiff.

Italian media on Sunday presented Rubio's visit as a meeting to "thaw" relations.

Iranian authorities plan to turn a bombsite at a university in central Iran into a museum about the impact of US-Israeli strikes, an official said.

"The current damaged site will be preserved as a war museum at the university to remain a document of the country's scientific oppression in history," said Zafarollah Kalantari, head of Isfahan University of Technology on Saturday.

He added that other land had been allocated for the "construction of a new building and provision of advanced equipment" for the university, according to the official IRNA news agency.

Kalanari said initial assessments had put the cost of the damage to the university's buildings and facilities at around $11 million.

US-Israeli strikes hit the institution in Isfahan - among the largest universities in Iran - in March during the war that began a month earlier and subsequently spread across the region.

Officials have said that strikes hit more than 30 universities across Iran, including in the capital Tehran, as well as residential areas and other civilian infrastructure.

Israel's military on Sunday issued new evacuation warnings in southern Lebanon for villages beyond the area it occupies, despite a truce with Lebanon intended to halt the fighting with Iran-backed Hezbollah.

"For your safety, you must evacuate your homes immediately and move away from the villages and towns by at least 1,000 metres into open areas," the military's Arabic-language spokesman Avichay Adraee posted on X.

The warning included more than 10 villages and towns as well as the city of Nabatieh, which lies several kilometres north of the Litani River, south of which Israel has stationed troops.

The Chinese government has issued a formal injunction to block US sanctions directed at five domestic refiners, including the Hengli Petrochemical Refinery, accused by Washington of purchasing Iranian oil.

China Daily, a state-affiliated English-language outlet, defended Beijing's decision by describing the move as a "defensive and justified response" to what the government characterises as a clear violation of international law.

In a sharp escalation of trade hostilities, China's Ministry of Commerce (MOC) formalised this stance by issuing a blocking measure prohibiting domestic entities from complying with the US restrictions, Xinhua reported.

This marks the first time Beijing has officially invoked its "blocking statute," a legal mechanism designed to neutralise the extraterritorial reach of foreign laws, signalling a shift from diplomatic protests to active legal countermeasures.

According to Xinhua, the specific companies named under this protection include Hengli Petrochemical (Dalian) Refining Co., Ltd., Shandong Shouguang Luqing Petrochemical Co., Ltd., Shandong Jincheng Petrochemical Group Co., Ltd., Hebei Xinhai Chemical Group Co., Ltd., and Shandong Shengxing Chemical Co., Ltd.

The White House has confirmed the appointment of Nick Stewart as an adviser to the diplomatic team tasked with negotiating an end to the ongoing conflict with Iran, according to a report by CBS News.

In an official statement, White House spokeswoman Olivia Wales described Stewart as a "sharp, seasoned policy expert" who would serve as a significant asset to the delegation led by Special Envoy Steve Witkoff.

Wales noted that Stewart possesses a deep background in Iran-related matters, having previously held positions within the State Department during the first Trump administration and on Capitol Hill.

Stewart's induction into the negotiating team was facilitated by Jared Kushner, US officials told CBS News. Prior to this appointment, Stewart was associated with the lobbying division of the Foundation for Defence of Democracies, an organisation that has consistently advocated for a more aggressive military posture against Tehran.

Central banks globally are reassessing their policy trajectories after the Iran war pushed energy prices higher, with Investment management firm, Robeco, warning that the "crude disruption" is forcing some to postpone easing while others weigh hikes they had not previously anticipated. Looking ahead, the firm expects the Fed to deliver two rate cuts later this year under incoming Chair Kevin Warsh, while the ECB could hike 25 (basis points) bps in June and September if Brent crude holds near $80 per barrel. In Asia, the Bank of Japan is likely to continue tightening as a tight labour market and 3per cent wage growth raise the risk of a 2022-style inflation episode.

Iran's Foreign Ministry spokesman Esmaeil Baghaei condemned US President Donald Trump's remarks that called the US seizure of Iranian vessels "piracy."

"The president of the United States has openly described the unlawful seizure of Iranian vessels as 'piracy,' brazenly boasting that 'we act like pirates,'" Baghaei said in an X post.

"This was no verbal slip. It was a direct and damning admission of the criminal nature of their actions against international maritime navigation," Baghaei added.

Trump on Friday bragged that the US Navy acted "like pirates" in its blockade of Iranian ports. "We took over the ship, we took over the cargo, we took over the oil. It's a very profitable business," Trump said at an event in Florida, Xinhua news agency reported.

Baghaei called on the international community, UN member states, and the UN secretary-general to firmly reject any normalisation of such "blatant violations" of international law.

A Very Large Crude Carrier (VLCC) belonging to the National Iranian Tanker Company has successfully bypassed the US Navy to reach the Asia-Pacific, transporting over 1.9 million barrels of crude oil with an estimated value of nearly $220 million, according to TankerTrackers.com.

In a post on X, the monitoring firm identified the vessel as "HUGE" and noted that it was last spotted off the coast of Sri Lanka more than a week ago. The tanker is currently reported to be traversing the Lombok Strait of Indonesia, heading towards the Riau Archipelago.

TankerTrackers.com stated that "HUGE" had not transmitted on the Automatic Identification System (AIS) since March 20, following its departure from the Strait of Malacca for Iran. These findings coincide with claims by Iranian state media on April 29 that at least 52 ships had successfully breached the American blockade.

Seven OPEC+ members are meeting Sunday to make their first decision on oil-production quotas since the UAE's departure from the cartel, which added to the soaring price pressure unleashed by the Mideast war.

The UAE, one of the world's top producers, announced April 28 it was withdrawing from the Organization of the Petroleum Exporting Countries (OPEC) and the expanded OPEC+ group, after chafing at their production quotas. The withdrawal took effect on Friday.

Neither group has reacted publicly so far - meaning there will be intense focus on the tone of the statement at the end of Sunday's online meeting by Algeria, Iraq, Kazakhstan, Kuwait, Oman, Russia and Saudi Arabia.

The production decision itself is already priced in by markets. The seven countries are widely expected to increase their quotas by 188,000 barrels per day (bpd), according to Arne Lohmann Rasmussen, chief analyst at Global Risk Management.

That is similar to a 206,000-barrel daily increase announced in March and April, subtracting the portion allotted to the UAE.

Italian Foreign Minister Antonio Tajani expressed deep apprehension regarding the escalating tensions across the Middle East during a telephone conversation with his Iranian counterpart, Abbas Araghchi.

In a statement shared on X on Saturday, Tajani noted that both parties examined the "ongoing conflict in Iran and the situation in the Middle East," while highlighting the critical necessity of averting a broader escalation.

The Italian minister emphasised the urgency of bolstering diplomatic initiatives to reach an accord and advocated for the reopening of the Strait of Hormuz. He cautioned that persistent disruptions to the maritime route could lead to detrimental effects on food security and regional stability, specifically affecting Africa.

Furthermore, he called upon Tehran to exert its influence over Hezbollah to cease strikes against Israel and "to achieve, through negotiation, peace in Lebanon."

"Italy is increasingly committed to supporting every international effort for peace, keeping channels of dialogue open with all partners and promoting stability in the Middle East," he added.

US President Donald Trump said there is a possibility that military strikes against Iran can be resumed. Speaking to reporters as he boarded Air Force One in South Florida, Trump said renewed military action remained on the table.

"If they misbehave, if they do something bad, but right now, we will see. It's a possibility that could happen, certainly," Trump said when asked about restarting strikes on Iran.

The president also commented on Iran's latest proposal to the United States, saying talks were progressing despite uncertainty within Tehran's leadership.

"Doing very well with regard to just about everything, but doing very well with regard to Iran. Again, they want to make a deal, they're decimated. They're having a hard time figuring out who their leader is. Uh, they don't know who their leader is because their leader's gone," Trump said.

Trump further indicated that Washington still wants to target the remaining portion of Iran's missile-production capabilities.

He said, "Well, I'd like to eliminate it, yeah, I'd like to. It'd be a start for them to build up again. And yeah, I would like to eliminate it."

US President Donald Trump said he would review a new Iranian peace deal but cast doubt over its prospects, as Iranian media reported Tehran had submitted a 14-point proposal to mediator Pakistan.

"I will soon be reviewing the plan that Iran has just sent to us, but can't imagine that it would be acceptable in that they have not yet paid a big enough price for what they have done to Humanity, and the World, over the last 47 years," Trump said on his Truth Social platform.

Iran's Tasnim and Fars news agencies said Iran had submitted a 14-point proposal. It reportedly includes ending the conflict on all fronts and enacting a new framework for the crucial Strait of Hormuz, according to Tasnim.

A 14-point response to a proposal from the United States has been submitted by Tehran, state media outlet Tasnim news agency reported.

The Iranian proposal, which was reportedly delivered via a Pakistani intermediary, calls for "ending the war on all fronts, including Lebanon," according to Tasnim.

While the US reportedly proposed a two-month ceasefire, Tasnim noted that Tehran maintains "that the issues should be resolved within 30 days" and insists that diplomatic efforts must prioritise the "termination of the war" as opposed to simply extending a ceasefire.

The Iranian document follows a nine-point US proposal and covers various topics, including guarantees against military aggression and the withdrawal of US military forces from the region surrounding Iran.

The response further stipulates the release of frozen Iranian assets, the removal of sanctions, and the introduction of a "new mechanism for the Strait of Hormuz."

Iran's state broadcaster, Islamic Republic of Iran Broadcasting (IRIB), quoted Deputy Foreign Minister Kazem Gharibabadi, who stated that the proposal was "aimed at the permanent end" of the conflict.

"Now the ball is in the United States' court to choose either the path of diplomacy or continuation of a confrontational approach," Gharibabadi said.

Lebanon's state-run National News Agency reported a series of Israeli strikes across southern Lebanon killed three people in the town of Sammaiyeh in the Tyre district.

The Israeli military said it carried out strikes dismantling "approximately 70 military structures and approximately 50 Hezbollah infrastructure sites" across southern Lebanon on Saturday.

The attacks that have become a regular occurrence despite the fragile April 17 ceasefire in the Israel-Hezbollah war.

President Donald Trump said the United States would be withdrawing more troops from Germany than was previously announced by the Pentagon.

"We're going to cut way down, and we're cutting a lot further than 5,000," he told reporters Saturday, without providing details.

Earlier, a NATO spokeswoman said the alliance was seeking more information from Washington on its decision, which came after German Chancellor Friedrich Merz said Iran was "humiliating" the Trump administration in negotiations.

A Catholic charity condemned what it called the "deliberate act of destruction against a place of worship" after a convent was damaged by Israeli forces in Lebanon.

The Israeli military confirmed a "religious building" was damaged by troops operating in the village of Yaroun and "houses located in a religious compound" were "damaged" during an operation to "destroy terrorist infrastructure".

French Catholic charity L'Oeuvre d'Orient said troops "destroyed" a convent belonging to the Salvatorian Sisters, a Greek-Catholic religious order the charity is affiliated with.

Iran said that it is up to the United States whether to pursue a negotiated settlement or to return to open war, and Tehran stands ready for either.

"Now the ball is in the United States' court to choose the path of diplomacy or the continuation of a confrontational approach," deputy foreign minister Kazem Gharibabadi told diplomats in Tehran, according to state broadcaster IRIB.

"Iran, with the aim of securing its national interests and security, is prepared for both paths," he said.

Day 64: Iran tightens grip on Hormuz waters under new IRGC rules

Day 63: Trump says 'not satisfied' with new Iran proposal

Day 62: Iran's supreme leader says, 'US suffered disgraceful defeat'

Day 61: Iran's Ghalibaf mocks Trump's blockade

Day 60: Blockade: US Marines board ship near Hormuz