Trump announces deal, Iran pushes back
President Donald Trump said on Saturday that a deal to end the war with Iran would be signed on Sunday, marking the first concrete timeline for a diplomatic resolution since the conflict began. However, Iranian officials quickly cast doubt on the announcement, questioning whether the timing was coordinated or premature. The conflicting statements underscore the fragility of ceasefire efforts as both sides continue military operations.
Military operations continue on multiple fronts
The US launched fresh strikes on Iranian positions, while Iran retaliated against Gulf states and Jordan, widening the geographic scope of the conflict. The AP reports that Iran's stranglehold on the Strait of Hormuz has begun to loosen, with Gulf Arab oil shipments reaching international markets again, offering a potential easing of global energy prices that have spiked since the war began.
Global economic fallout deepens
The World Bank warned that the US-Iran war could drag the global economy to post-COVID lows, cutting its growth forecast to 2.5 percent due to surging energy prices and inflation. The UK economy already contracted in April as the war's impact rippled through European markets. Oil prices have fluctuated wildly on reports of potential deals, reflecting market sensitivity to any diplomatic signals from both sides.