Key facts
- Iran and Israel announced they have halted attacks on each other following an appeal from President Trump.
- The UN nuclear watchdog warns Iran's risk of covertly developing nuclear weapons has increased since June 2025 strikes.
- Inspectors can no longer regularly verify Iran's nuclear material, which includes 440.9 kg of high-enriched uranium.
- President Trump stated Iran has "already agreed" not to develop nuclear weapons.
- Israel plans to continue operations in Lebanon to establish a buffer zone.
- Israeli strikes in Gaza City killed at least 11 Palestinians.
- Hezbollah rejected a U.S.-brokered pact for Lebanon.
- The Pentagon has elevated the counterintelligence threat posed by Israeli espionage to its highest level.
- The U.S. is preparing a draft resolution to condemn Iran at the IAEA Board of Governors meeting.
- US forces intercepted Iranian missile and drone attacks in the Persian Gulf.
- The UN World Food Programme warns millions are being pushed into acute hunger due to the prolonged Middle East crisis.
- Iraq's Communications and Media Commission canceled its settlement agreement with Korek Telecom to recover $1.5 billion in unpaid debts.
President Trump has reportedly intervened to de-escalate tensions between Iran and Israel, with both nations announcing a halt to reciprocal strikes. This intervention comes as the conflict, which has reached its 100-day mark, threatened Middle East peace efforts. Tehran, however, has warned it would resume hostilities if Israel continued to strike Hezbollah in Lebanon. The UN nuclear watchdog has raised concerns, stating Iran's risk of covertly developing nuclear weapons has increased since US-Israeli strikes in June 2025, with inspectors unable to regularly verify Iran's nuclear material, which includes 440.9 kg of high-enriched uranium. President Trump, however, claimed in an interview that Iran has "already agreed" not to develop nuclear weapons, though he conceded the country could change its mind, and denied reports that U.S.-Iran talks have stopped.
Despite ceasefire agreements, deadly strikes continue in Gaza and Lebanon. Israel plans to continue operations in Lebanon to establish a buffer zone, and Israeli strikes in Gaza City have killed at least 11 Palestinians. Hezbollah has rejected a U.S.-brokered pact for Lebanon, and ceasefire talks for Gaza have stalled. The Pentagon has elevated the counterintelligence threat posed by Israeli espionage to its highest level, citing concerns over spying on U.S. deliberations regarding Iran and Lebanon. The U.S. is also preparing a draft resolution to condemn Iran at the IAEA Board of Governors meeting, a move Russia believes may antagonize Iran and complicate wider U.S.-Iran talks. The Pentagon considered, then rejected, a high-risk military mission to Iran to secure uranium, estimated to take at least two days. US forces intercepted Iranian missile and drone attacks in the Persian Gulf, including six ballistic missiles fired at Bahrain and Kuwait.
Economically, oil prices have seen fluctuations, easing on ceasefire hopes but remaining sensitive to Middle East tensions. Brent crude was near $95 and WTI near $93, with analysts noting that significant price drops depend on Hormuz traffic recovery and on-the-ground progress. Airlines are gradually resuming some flights to the Middle East, though many carriers outside the Gulf continue to divert Europe-Asia flights. The UN World Food Programme warns that millions are being pushed into acute hunger due to the prolonged Middle East crisis, impacting fragile economies in Somalia, Afghanistan, and Sri Lanka, and forcing the WFP to ration aid due to funding cuts. Saudi Arabia's non-oil sector experienced a pickup in growth during May. In a separate development, Iraq's Communications and Media Commission canceled its settlement agreement with Korek Telecom, initiating legal actions to recover an estimated $1.5 billion in unpaid debts, halting all Korek operations. Abu Dhabi Ports acquired terminals in Santos and Itaqui for US$ 835 million. Tech stocks are rising, driven by Alphabet's $80 billion fundraising and Nvidia's chip advancements, with investors appearing unconcerned by geopolitical tensions.
President Trump reportedly warned Israeli Prime Minister Benjamin Netanyahu against initiating a war with Iran, suggesting he could be left fighting alone. Spanish Prime Minister Pedro Sánchez has emerged as a prominent European voice opposing the war, positioning himself as the EU's moral leader. Thirty-eight Senate Democrats are demanding more information about the legal basis for the Trump administration's argument that the Iran war has terminated. The U.S. military has refuted Iran's assertions of launching warning shots at U.S. warships. An Iran-aligned Iraqi militia, Asa'ib Ahl al-Haq, has formed a committee to sever ties with the Popular Mobilization Forces (PMF) to ensure weapons are exclusively held by the state. Israel allegedly established covert military and intelligence sites in Azerbaijan near Iran's border for drone and surveillance missions. Lebanese army commander General Rudolf Haykal is visiting Pakistan amid regional tensions and Pakistani mediation efforts.