Here's the latest
• Peace talks: US President Donald Trump does not appear open to Iran’s proposal to end the war, sources said. The proposal would reopen the Strait of Hormuz but leave questions about Tehran’s nuclear program for later negotiations. Iran’s Foreign Minister Abbas Araghchi previously gave Pakistan a list of “red lines” to be conveyed to the US, according to state media.
• Iran’s diplomatic push: Russia’s Vladimir Putin said he received a message last week from Iran’s new supreme leader, who has not been seen since he was announced as his late father’s successor. Putin made the remarks in a meeting with Araghchi in Russia, where they discussed the war.
• US “humiliated”: Germany’s leader Friedrich Merz said the US is “being humiliated” by Iran, as he criticized Washington’s attempts to extricate itself from the war.
Trump suggests he won't accept Iran's latest peace proposal, as oil prices climb
US President Donald Trump signaled yesterday that he was unlikely to accept Iran’s latest proposal to end the war, sources told CNN, after Tehran proposed a plan that would reopen the Strait of Hormuz while leaving questions about its nuclear program for later negotiations.
Here’s what else has been happening
- The US and Iran may not have met for a second round of talks in Pakistan, but the two sides are not as far apart as they seem, according to sources familiar with the mediation process.
- The global oil price climbed above $110 a barrel for the first time in three weeks today, as traders worry that the US and Iran are no closer to a deal to end the war and fully reopen the vital Strait of Hormuz.
- BP’s profits more than doubled in the first three months of the year, as the company’s oil traders made the most of the wild swings in oil prices triggered by the Iran war.
- On the ground, several million Iranians have lost their work and are being pushed into poverty amid the conflict.
CNN’s Kevin Liptak, Nic Robertson, Hanna Ziady, Tim Lister and Aida Karimi contributed to this reporting.
BP profits more than double on oil price impact of Iran war
BP’s profits more than doubled in the first three months of the year, as the company’s oil traders made the most of the wild swings in oil prices triggered by the Iran war.
The UK energy giant reported a first-quarter profit of £3.2 billion ($4.3 billion), up from £1.4 billion ($1.9 billion) in the first three months of 2025.
The boost reflected an “exceptional” oil trading result, BP said in an earnings statement Tuesday. Traders benefit from big changes in oil prices, known as volatility, if they can accurately predict the direction of travel.
Improved margins in its oil refining business also helped, as did a stronger performance from its midstream business, which handles the storage and transportation of oil and natural gas. The company’s shares gained 2.8% in London to trade at £5.88 ($8).
CEO Meg O’Neill — who took the helm at the beginning of April and is the company’s first female chief — said BP was “working relentlessly” to maintain reliable production. “We are working with customers and governments to get fuel where it’s needed, helping minimize disruption,” she added.
Brent crude oil climbed above $110 a barrel for the first time since early April Tuesday. The global oil benchmark was trading at around $73 just before the United States and Israel launched attacks on Iran on February 28. It stood at $60 at the start of the year.
Meanwhile, the End Fuel Poverty Coalition, a campaign group, called for a windfall tax on firms profiting from the Iran war-related energy crisis. “These astronomical profits are a startling reminder that when conflict drives up the price of oil and (natural) gas, energy companies profit and households pay,” the group’s co-ordinator Simon Francis said in a statement.
US and Iran not as far apart as they seem, sources say
The US and Iran may not have met for a second round of talks in Pakistan, but the two sides are not as far apart as they seem, according to sources familiar with the mediation process.
Intense diplomacy continues behind the scenes, the sources say, and ongoing talks are centered around a staged process in which the first part of a potential deal would focus on returning to the status quo before the war and reopening the Strait of Hormuz without restrictions or tolls.
The issue of Iran’s nuclear program – which both the US and Israel cited as their casus belli – would be addressed later.
US President Donald Trump has previously said that any deal would require Iran to forfeit its supply of near bomb-grade uranium and give up enrichment, demands Iran has steadfastly refused to accept.
According to the sources, mediators are applying pressure on both sides to reach an agreement, with the next few days being especially crucial. Hanging over it all is the chance that the US may decide to disengage and return to war.
Trump relying on blockade to pressure Iran — but such tactics have not worked, expert warns
President Donald Trump appears to be relying on the US blockade of Iran’s ports to pressure Tehran to cave to his demands, said Ali Vaez, Iran Project Director at the International Crisis Group think tank.
But in the past, he cautioned, Trump’s applying of economic or military pressure on Tehran has “rendered Iran’s position harder rather than softer.”
Vaez discussed Iranian Foreign Minister Abbas Araghchi’s meeting with Russian President Vladimir Putin, noting that Moscow can help Iran “in both scenarios: of a return to conflict or a deal.”
Russia has already provided Iran with intelligence and other support during the war, Vaez said. And if the US and Iran come to an agreement, Russia, as a permanent member of the UN Security Council, could help Iran fulfill its goals.
For example, if Iran wants to charge tolls in the Strait of Hormuz, it may need a security council resolution to achieve that, Vaez said.
Russia has also offered to store or reprocess Iran’s enriched uranium, though the US has so far rejected this proposal, Vaez mentioned.
Ultimately, both Iran and the US will have to make concessions, or they risk causing further economic turmoil and food insecurity, which “would be a disaster for everyone,” Vaez said.
Analyst discusses report that Vance raised concerns about US missile stockpiles
CNN’s Erin Burnett talks to Seth Jones, president of the Defense and Security Department at the Center for Strategic and International Studies, about the war with Iran after The Atlantic’s report that Vice President JD Vance raised concerns about US missile stockpiles.
Oil price climbs above $110 a barrel on doubts about Iran war peace deal
The global oil price climbed above $110 a barrel for the first time in three weeks today, as traders worry that the United States and Iran are no closer to a deal to end the war and fully reopen the vital Strait of Hormuz.
Brent crude, the global oil benchmark, was up 2.7% to $111.2 a barrel in early morning trade. WTI, the US benchmark, was trading 2.3% higher at $98.5 a barrel.
US President Donald Trump signalled Monday that he was unlikely to accept Iran’s latest proposal to end the conflict, two people familiar with matter told CNN. Tehran proposed a plan that would reopen the Strait of Hormuz while leaving questions about its nuclear program for later negotiations.
“The stalemate and the closure of the Strait are still negative for oil prices,” Mohit Kumar, chief European economist at investment bank Jefferies wrote in a note. “The longer the Strait is closed, the more it would have a negative impact on the global economy,” he added.
What to know about the Strait of Hormuz
As we’ve reported, US President Donald Trump signaled yesterday he was unlikely to accept Iran’s latest proposal to end the war, a plan that would reopen the Strait of Hormuz while leaving questions about its nuclear program for later negotiations.
The waterway has remained a crucial factor since the start of the conflict after it was effectively closed by Tehran.
A narrow waterway that bypasses Iran and Oman, the Strait of Hormuz is the main route for shipping crude from oil-rich countries such as Saudi Arabia and Kuwait to the rest of the world.
Iran controls the strait’s northern side. About 20 million barrels of oil, or about one-fifth of daily global production, used to flow through the strait every day, according to the US Energy Information Administration, which calls the channel a “critical oil chokepoint.” According to the EIA, “very few alternative options exist to move oil out of the strait if it is closed.”
The strait also carries about one-fifth of global trade in liquefied natural gas.
Energy analysts have warned that oil and natural gas prices are likely to remain elevated until the strait is passable.
Millions face unemployment in Iran
Several million Iranians have lost their work and are being pushed into poverty amid the US-Israel war with Iran.
Few sectors have been spared. Among the legions of newly unemployed are refinery and textile workers, truck drivers, flight attendants and journalists.
Iran’s economy was in a dire state before the conflict. National income per person had fallen from about $8,000 in 2012 to $5,000 in 2024, ravaged by inflation, corruption and sanctions.
The outlook is even worse. Up to 4.1 million more people could fall into poverty due to the conflict, according to the United Nations Development Programme (UNDP).
The physical damage caused by thousands of airstrikes has caused widespread displacement, according to the UNDP. More than 23,000 factories and firms have been hit, media outlet EcoIran has reported.
That’s cost one million jobs directly, says Iran’s Deputy Work and Social Security Minister, Gholamhossein Mohammadi. And the spillover has pushed another million people out of work, the Iranian publication Etemad Online has estimated.
Disruption to shipping, and therefore imports, has also disrupted Iran’s already fragile economy, “placing 50% of Iranian jobs at risk and pushing an additional 5% of the population into poverty,” according to Hadi Kahalzadeh at the Quincy Institute, a foreign policy think tank.
Official data show a sudden jump in the numbers applying for unemployment insurance – with 147,000 applicants in the past two months, about three times higher than last year.
How Gulf economies are diverging under Iran war pressure
Economist Karen E. Young tells CNN’s Becky Anderson that the Gulf is no longer moving as one, with the war creating clear winners and losers.
Peace talks hit another snag as Trump signals dissatisfaction with Iran's proposal. Catch up here
President Donald Trump signaled Monday he was unlikely to accept Iran’s latest proposal to end the conflict, after Tehran proposed a plan that would reopen the Strait of Hormuz while pushing off discussions of the nuclear issue, according to a source.
However, sources familiar with the mediation process said the US and Iran aren’t as far apart as they may seem.
Meanwhile in Russia, where Iran’s top diplomat was shoring up support from its key ally, President Vladimir Putin revealed he received a message last week from the elusive Supreme Leader Motjaba Khamenei.
Khamenei hasn’t been seen or heard from since he was announced as his late father’s successor more than six weeks ago, sparking questions about his wellbeing.
Here’s what else you need to know:
- Trump’s next steps: It wasn’t clear Monday what Trump’s next steps would be. Reopening the strait without resolving issues related to Iran’s nuclear program could remove a key piece of American leverage in the talks, officials said. Yet allowing the waterway to remain blocked would prolong the higher energy prices that have caused the cost of gas to spike in the US.
- Iranian cargo still transiting Hormuz: Most ships that have transited the strait in recent days have taken a route designated by Iranian authorities, and about half of them loaded at Iranian ports, according to shipping data. That’s in defiance of the US blockade aiming to prevent ships from using Iranian ports.
- Energy crisis: Oil prices rose to a three-week high on Monday, while US gas prices nudged up a penny to $4.11 a gallon.
- Iran mulls how to proceed: Iran is reassessing how to move forward with diplomacy to end the war, Foreign Minister Abbas Araghchi said during his meeting in Russia, blaming slow progress on Washington’s “destructive habits,” including “unreasonable demands.”
- Fragile Israel-Lebanon ceasefire: Secretary of State Marco Rubio said the US is “aware” of Israel’s strikes on Lebanon during the ceasefire and said the US has urged Israel “to make sure their responses are proportional and targeted.” A CNN review of satellite imagery shows demolitions have continued in Lebanon since the truce came into effect as ground operations begin to take on the appearance of those seen in Gaza. A truce in Lebanon has been a key sticking point in US-Iran negotiations.
- Putin’s well wishes: Putin asked Iranian officials to “convey to the Supreme Leader my appreciation for his message and my best wishes for his good health and well-being,” according to the Kremlin. He also said Russia “will do everything that meets your (Iran’s) interests” to ensure peace.
- Khamenei’s wellbeing: Rubio said the US “has indications” Khamenei is still alive, though he said it’s not clear how much power the new supreme leader holds. A source told CNN last month that Khamenei had suffered a fractured foot, a bruised left eye and minor lacerations to his face in the strikes that killed his father.
- US “humiliated”: Germany’s leader Friedrich Merz said the US is “being humiliated” by Iran, as he criticized Washington’s attempts to extricate itself from the war.
CNN’s Kevin Liptak, Nic Robertson, Mohammed Tawfeeq, Jennifer Hansler and Mostafa Salem contributed reporting.
Sources say Trump does not appear open to Iran’s latest proposal to end war
President Donald Trump signaled Monday he was unlikely to accept Iran’s latest proposal to end the conflict after Tehran proposed a plan that would reopen the Strait of Hormuz while leaving questions about its nuclear program for later negotiations.
Two people familiar with the matter said Trump conveyed his views during a Monday meeting with top national security officials where Iran was discussed. One of the people said Trump was not likely to accept the plan, which was transmitted to the US over the last few days.
Reopening the strait without resolving questions over Iran’s nuclear enrichment or stockpile of near-bomb-grade uranium could remove a key piece of American leverage in the talks, officials said.
Yet allowing the waterway to remain blocked would prolong the higher energy prices that have caused the cost of gas to spike in the US.
It wasn’t clear after Monday’s meeting what Trump’s next steps would be. American officials say they remain concerned at what they regard as divisions within Iran’s regime, and are unsure who retains ultimate decision-making power over a prospective deal.
Yet Trump has sounded skeptical in public at the idea of restarting the US bombing campaign, which is on hold after he extended a ceasefire last week.
The White House has declined to comment on the specific contours of the negotiations.
