US-Iran conflict: Trump pauses Strait of Hormuz operation after Iran deal progress

Iranian Foreign Minister Abbas Araghchi met his Chinese counterpart Wang Yi for talks in Beijing on Wednesday, according to China's Xinhua news agency.

China is a key customer for Iranian oil, defying sanctions imposed by the United States as Washington seeks to choke off revenue to Tehran.

Xinhua did not immediately provide more details about the talks.

Araghchi arrived in Beijing on Wednesday morning, Iranian local media reported.

"During this visit, our country's Foreign Minister will discuss bilateral relations and regional and international developments with his Chinese counterpart," Fars news agency said.

Australia will establish a national fuel stockpile of one billion litres to shield the nation from an energy crisis triggered by war in the Middle East, Prime Minister Anthony Albanese said Wednesday.

"Our number one priority remains shielding Australia from the worst effects of this crisis," Albanese told reporters.

Iranian Foreign Minister Abbas Araghchi arrived in Beijing on Wednesday morning ahead of scheduled talks with China's top diplomat Wang Yi, according to Iran's Tasnim and Fars news agencies.

"Seyyed Abbas Araghchi arrived in Beijing... at the head of a diplomatic delegation. During this visit, our country's Foreign Minister will discuss bilateral relations and regional and international developments with his Chinese counterpart," Fars reported.

China is a key customer for Iranian oil, defying sanctions imposed by the United States as Washington seeks to choke off revenue to Tehran.

Araghchi's trip comes before US President Donald Trump's scheduled visit to China on May 14-15 to see President Xi Jinping - a trip he delayed after the United States and Israel attacked Iran.

US President Donald Trump said that 'Project Freedom' will be paused "for a short period of time". The operation guide ships through the Strait of Hormuz will be halted because progress has been made toward reaching a deal with Iran, the US president says.

A cargo vessel has been struck by an unknown projectile in the Strait of Hormuz, the United Kingdom Maritime Trade Operations said in a statement.

"A verified source reported a cargo vessel has been struck by an unknown projectile," in the strategic waterway, the agency said, adding that the incident was reported around 1830 GMT on Tuesday.

The environmental impact of the strike is unknown and an investigation is underway.

US Secretary of State Marco Rubio said Iran must "accept the reality of the situation" and return to the negotiation table in order to achieve a complete solution to the crisis in West Asia, as Washington seeks to better understand the scope of issues Tehran may be willing to discuss.

Addressing a press briefing, Rubio said US officials are currently working to identify the areas Iran may be open to engaging on, suggesting that any early-stage understanding could begin with broader, high-level parameters rather than a detailed agreement.

Global oil prices slid sharply during early Wednesday trade (May 6), with major crude benchmarks falling more than 3% as traders weighed easing market fears and profit-taking ahead of the weekend. At about 7:08 am Tokyo time, US WTI crude futures were trading around $102.27 a barrel, down $3.91, or 3.7%, while Brent crude slipped to $110.29, a loss of $4.15, or 3.6%, as per OilPrice.org. Both benchmarks have been sensitive to shifting global economic and geopolitical dynamics this week.

The US has completed its offensive operations against Iran, US Secretary of State Marco Rubio said, echoing statements to Congress nearly a month into a fragile ceasefire.

"The operation is over — Epic Fury — as the president notified Congress. We're done with that stage of it," Rubio told reporters at the White House.

It's an indication the ceasefire is holding despite a barrage of Iranian missile and drone attacks on the UAE, after the US started escorting commercial ships passing Hormuz Strait under "Project Freedom".

The United States and its Gulf allies have proposed a U.N. resolution threatening Iran with sanctions or other measures if it doesn’t halt attacks on ships in the Strait of Hormuz, stop imposing “illegal tolls,” and disclose the placement of all naval mines to allow freedom of navigation.

The draft Security Council resolution, obtained Tuesday by The Associated Press, also demands that Iran “immediately participate in and enable” United Nations efforts to establish a humanitarian corridor in the strait for the delivery of vital aid, fertilizer and other goods.

Iran has reportedly launched two Shahed-136 drones at the Komala Party's Surdash camp in Iraq's Sulaymaniyah Governorate late Tuesday, around 11:35 p.m. local time. The Komala Party, which advocates for Kurdish rights in Iran, and local authorities confirmed the attack . No injuries were reported among party members, Peshmerga fighters, or their families. Komala called it aggression against civilians and a sovereignty violation, amid a pattern of Iranian strikes on exiled Kurdish groups despite a US-brokered ceasefire. Videos of the drones and blasts have spread online, with Kurdish advocates calling for international protection.

The United Nations has expressed "deep concern" over the missile and drone attacks launched by Iran against the UAE, which resulted in at least three injuries and caused a fire at an oil facility in the Fujairah oil industrial zone late on Monday.

This came in remarks made on Tuesday (early Wednesday in Asia) by Stéphane Dujarric, Spokesperson for the United Nations, in which he also voiced concern over a number of strikes in the region targeting vessels in and around the Strait of Hormuz in recent days, noting that this reflects the increasing risk of a resurgence of hostilities amid rising tensions surrounding the ceasefire.

Iran's military on Tuesday denied launching any attacks on the UAE over the past days, after the Gulf country accused Tehran of launching drone and missile barrages.

"The armed forces of the Islamic Republic of Iran did not launch any missile or drone operation against the United Arab Emirates these past days," the Khatam al-Anbiya central command said in a statement.

The Indian government approved a $27.3 billion credit guarantee scheme on Tuesday to help businesses survive short-term cash problems caused by the Middle East war, including airlines hit by surging fuel prices.

The scheme is intended to help businesses get access to loans until March next year so they can ride out the crisis, prevent layoffs and avoid an economic slowdown.

"The proposed credit guarantee scheme is a major step to help businesses... and the airline sector, to ensure their additional working capital needs," a government statement said.

"It will also promote uninterrupted domestic production and maintain the resilience of the ecosystem," it said.

The proposal was approved by a meeting of Prime Minister Narendra Modi's cabinet on Tuesday.

The credit line will operate for five years for most businesses and seven years for airlines, the statement said.

Day 67: 'Project Freedom' paused 'for a short period': Trump

Day 66: UAE intercepts 12 ballistic missiles, 3 cruise missiles, 4 drones

Day 65: Iran says US options are 'impossible' war or 'bad deal'

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