War returns to Iran with Israel, US strikes

Oil prices have sunk around seven per cent, on the eve of crucial midterm elections in the United States, as signals that Tehran and Washington are renewing dialogue boost hopes of ending the war, AFP reports.

Earlier, the Axios news outlet reported that US Vice President JD Vance had sent a letter to Iranian national security chief Mohsen Rezaei about possible new talks. That was the highest-level move from the administration of US President Donald Trump in months.

“We believe the (Trump) signals may be tactical ahead of tomorrow’s US midterm elections,” noted Arne Lohmann Rasmussen, chief analyst at Global Risk Management. “Meanwhile, attacks on shipping in the Strait of Hormuz continue (and) we maintain our higher-for-longer outlook for energy prices.”

Nevertheless, share prices of energy majors have dropped, while many other sectors are boosted by the cooling fuel costs.

Traders are also focused on Tuesday’s midterms, with Democrats expecting to win at least partial control of Congress that would impose political constraints on Trump for the first time in two years.

Secretary of Iran’s Supreme National Security Council Mohsen Rezaei and Russian President Vladimir Putin have reaffirmed their commitment to continuing strategic cooperation while discussing regional developments, state-run IRNA reports.

During a telephone conversation, the two officials discussed the latest regional and international developments, with “particular focus on West Asia”, as part of high-level consultations between Tehran and Moscow, IRNA reported.

Houthi spokesperson Yahya Saree claims that over the past 48 hours, the group targeted airports in Dammam and Jizan, causing damage to military equipment and disrupting air traffic.

He claims the group targeted Dammam Airport in two phases using two drones, resulting in the disruption of air traffic at the airport.

“Meanwhile, the early warning radar in Jizan was targeted with a drone, achieving a direct hit. Additionally, a military transport aircraft at Jizan Airport was targeted,” Saree adds.

Iran’s vice president says exchanges with the United States via mediators indicate Washington’s recognition of Tehran’s “victory” in the Middle East war, AFP reports.

“Our enemy failed to achieve any of its objectives in the last two wars. Even today, although the United States, driven by its own goals and concerns regarding domestic public opinion, is engaging in various manoeuvres, the messages conveyed to Iran through intermediaries point to an acknowledgement of our victory,” Iran’s First Vice President Mohammad Reza Aref is quoted as saying by the IRNA state news agency.

Yemen’s Houthi rebels have advanced to within 80 kilometres of Aden, the main stronghold and temporary capital of the country’s internationally recognised government, four military sources tell Reuters.

The advance brings the Houthis closer to Aden than at any point since the early months of the war in 2015, when they briefly entered the city before being driven out.

Fighting between the Houthis and government forces has been reported at a military camp at the entrance to Tur al-Bahah district, one of the main approaches to Aden. The camp is about 50km from the provincial capital of Lahj and 80km from Aden itself.

The Houthis launched their assault on government positions in Al-Maqatirah three days ago and have since taken the whole district, the sources say, adding that the mountainous area overlooks the road linking Taiz to Aden, and that the Houthis have forced government troops to retreat toward Tur al-Bahah.

The Saudi-led coalition says it has intercepted and destroyed two drones in the kingdom’s Riyadh region.

China has stepped up diplomatic efforts to resolve the Middle East crisis, urging a return to the negotiating table in back-to-back meetings with Iranian, Omani and Saudi officials in Beijing, AFP reports.

Beijing supports Tehran in “safeguarding its own sovereignty and security”, Foreign Minister Wang Yi told Ali Bagheri Kani, the deputy secretary of Iran’s Supreme National Security Council, according to a Chinese statement.

Wang later called for dialogue to end the conflict “while safeguarding regional energy security and the safety of shipping lanes”, as he met with Saudi National Security Adviser Musaad bin Mohammad al-Aiban.

President Xi Jinping also met Oman’s sultan for talks in Beijing. Xi told Haitham bin Tariq that China was ready to “contribute to peace, stability and prosperity in the region”.

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Iran’s Supreme Leader, Ayatollah Mojtaba Khamenei, has granted “powers” to the government in its talks with the US to end the Middle East war, AFP reports quoting President Masoud Pezeshkian.

“We are striving to resolve the issue through dialogue. In this regard, the Supreme Leader has also conferred certain powers on the government,” Pezeshkian is quoted by state news agency IRNA as saying.

Iran is holding intensive consultations through mediators, including Qatar and Pakistan, to reach a potential agreement to reopen the Strait of Hormuz and resume negotiations with the US, Iranian Foreign Minister Abbas Araghchi says, according to Reuters.

“If the US accepts our conditions, the Strait of Hormuz will be reopened and negotiations will be resumed”, Araghchi says in an interview with the official IRNA news agency.

Iran’s national security chief Mohsen Rezaei has discussed developments in the Middle East in a phone call with Russian President Vladimir Putin, as Iran says contacts over ending the war with the US continue, Reuters reports citing Tehran’s state media.

Oil prices have extended losses on hopes of new talks between the United States and Iran aimed at ending the Middle East conflict, according to AFP.

Crude futures, already down about four per cent earlier on the diplomatic prospects, dropped further as the trading day went on.

The main international contract, Brent North Sea crude, has shed 6.1pc to $106.54 a barrel, while the US benchmark West Texas Intermediate is down 6.3pc to $97.56.

French oil major TotalEnergies expects global oil demand to peak in the years between 2035 and 2040, with potential for demand to decline faster if sales of electric vehicles continue to grow, Reuters reports citing the company’s chief sustainability officer.

The company’s annual energy outlook report projects that global demand for petroleum products will increase and plateau during the 2030s before beginning a slow decline. Last year’s forecast had expected oil demand to rise until 2040 before declining gradually.

The report adds that the crisis in energy markets triggered by the US-Israeli war on Iran could, however, act as an “accelerator” of the energy transition, pointing to a sharp increase in EV sales in Asia, Latin America and Europe, and an increase in biofuel blending requirements influencing energy consumption patterns.

Chief sustainability officer Aurelien Hamelle tells reporters there has been a “stunning acceleration” of low-carbon technology between the second quarter of 2025 and the second quarter of 2026.

The Iranian foreign ministry’s spokesperson has affirmed that parliament speaker Mohammad Bagher Ghalibaf remains the top negotiator.

“Cohesion and harmony among high-level decision-making authorities are unprecedented,” he further said, according to IRIB.

The Iranian Navy claims that a tanker, which turned off its navigation systems, has struck a sea mine and caught fire in a “restricted, high-risk area” east of the Strait of Hormuz, state broadcaster Press TV reports.

Europe will not face a gas shortage this winter; it will simply be forced to pay more to ensure sufficient supply, Reuters reports quoting TotalEnergies Chief Executive Officer Patrick Pouyanne.

“The idea of a gas shortage is wrong,” Pouyanne tells a briefing on the company’s energy demand outlook, adding that Europe is only waking up to its gas storage needs after markets had bet on the Iran war ending in the summer.

The UAE’s energy minister said that what will happen in the US-Israeli war on Iran cannot be predicted, but the UAE will be more prepared than before, Reuters reports.

Suhail al-Mazrouei told Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) that at certain times his country’s exports were better than prior to the war.

Iranian Foreign Minister Abbas Araghchi has held talks with his Turkmen counterpart Rashid Meredov in Ashgabat, focusing on strengthening bilateral cooperation and reviewing regional and international developments, IRNA reports.

Araghchi met with Meredov, who also serves as Deputy Chairman of the Cabinet of Ministers of Turkmenistan, on Monday, during a one-day visit to the Central Asian country.

The two officials reviewed the latest developments in Tehran-Ashgabat relations and emphasised the need to capitalise on existing capacities to expand cooperation across various political and economic fields.

Meredov highlighted the historical ties between the two neighbouring countries, describing them as a solid foundation for further strengthening bilateral relations.

Former US president Bill Clinton has criticised the US attack on Iran, saying the rise in petrol prices is a direct consequence of a military operation that was not carefully planned.

He said wars should not be started without a clear plan to end the fighting and prevent further loss of life.

Clinton also criticised what he described as corruption and vanity projects in the Trump administration.

China’s top diplomat told a senior Iranian official that Beijing supports Tehran in “safeguarding its own sovereignty and security” as they met in the Chinese capital on Monday, after threats of renewed US strikes, AFP reports.

President Donald Trump said on Saturday that the United States has knocked out much of Iran’s military but still has to “take care of” one or two targets, as Tehran warned of reprisals if attacked.

“China supports Iran in safeguarding its own sovereignty and security,” Chinese Foreign Minister Wang Yi told Ali Bagheri Kani, the deputy secretary of Iran’s Supreme National Security Council, according to a statement from Beijing.

The foreign ministry had not previously announced the visit by Bagheri Kani to Beijing.

“All parties should… in a spirit of reason and pragmatism, focus on a political solution rather than once again resorting to armed conflict,” Wang told Bagheri Kani, according to the statement.

The UAE will protect its energy infrastructure and invest in new export routes, storage capacity abroad and shipping fleets to be better prepared for the US-Israeli war on Iran, its energy minister said, Reuters reports.

Minister Suhail al-Mazrouei said the course of the war could not be predicted, but the UAE would be more prepared than before.

The UAE has been exporting crude via Fujairah, which sits just outside the Strait of Hormuz. It is building a new pipeline to Fujairah that will double crude capacity by next year.

Kuwait raised its crude oil production to 2.1 million barrels per day in October, the highest level since the outbreak of the Iran war and a rise of over 300,000 bpd from September, a person with direct knowledge of the matter told Reuters.

The increase came despite a record number of attacks on shipping in the Strait of Hormuz, adding to signs that Gulf oil producers are maintaining or increasing output as they adapt to the disruption risks.

The person asked not to be named because they were not authorised to speak publicly about Kuwaiti production.

Oil fell more than 4 per cent as talks between Iranian and Qatari officials on a deal to end the US-Israeli war on Iran raised hopes that Middle East supply disruptions could ease, Reuters reports.

Iranian negotiators have left talks with Qatari mediators aimed at ending the war with the United States, and a draft proposal is being circulated with a follow-up meeting possible, an official briefed on the talks said on Monday.

“The new month brought with it renewed hopes of a breakthrough in the Iranian stalemate,” said Tamas Varga of oil broker PVM.

Brent crude futures fell $4.79, or 4.2pc, to $108.64 a barrel by 1020 GMT while US West Texas Intermediate crude traded at $99.71, down $4.41 or 4.2pc.

Iranian negotiators have left talks with Qatari mediators aimed at ending the war with the United States, ​and a draft proposal is being circulated with a follow-up meeting ‌possible, an official briefed on the talks said, Reuters reports.

The negotiators departed on Sunday, though not because of difficulties in the negotiations, the official said, without providing further details on the ​draft proposal.

Iran’s foreign ministry spokesperson said the basis of the talks is ​a seven-step plan Iran drew up in September to reopen the ⁠Strait of Hormuz and end the US naval blockade on Iran, with Tehran ​now suggesting that proposal could be implemented on a faster timeline under a deal.

Saudi Arabia briefly activated emergency alerts in the southwestern cities of Abha and Khamis Mushait and Taif in the country’s west before later announcing that the danger had passed in the three areas, Anadolu reports.

The warnings were issued through the National Early Warning Platform for Emergencies, according to separate statements by the Saudi Civil Defence.

It later announced that the danger had passed in Abha, Khamis Mushait and Taif, and urged residents to continue following Civil Defense instructions and avoid gathering or filming.