War returns to Iran with Israel, US strikes

The Israeli military has said it had no involvement in reported US strikes on an Iranian island, despite PM Benjamin Netanyahu’s recent threats to resume war with Tehran, AFP reports.

Asked if Israel was involved in secret attacks reported by US media outlets on Qeshm Island, which lies in the Strait of Hormuz, an Israeli military spokespeson told AFP, “No”.

The Saudi-led coalition fighting Yemen’s Houthis said it had intercepted a drone in the region of Makkah, following repeated waves of attacks on the kingdom, AFP reports.

“Interception and destruction of a drone in the Makkah region,” Turki al-Malki, the coalition’s spokesman wrote on social media, without elaborating on the source of the attack.

Iran unveiled a massive billboard and banners pledging to kill US President Donald Trump across Tehran, bringing to a new level the official rhetoric displayed in the capital, AFP reports.

“We will kill Trump”, read the billboard towering over the busy Enghelab Square in Tehran, which depicted the US president behind bars with his head bowed, according to the report.

Yemen’s Houthis have said that Saudi strikes killed 17 civilians over two days this week, as they fight a Saudi-led coalition backing the internationally recognised government, AFP reports.

The Houthi health ministry said in a statement that most of the people killed were children, “which shows that Saudi aircraft are targeting homes, residential neighbourhoods and markets”.

The UN’s relief chief warned that Yemen’s civilians are bearing the cost of an escalating conflict, with nearly 300,000 people displaced since August.

“Yemen’s civilians are paying a brutal price for this escalating conflict,” said Tom Fletcher.

Fletcher said roads are closed and supplies are running out in the besieged city of Taiz, home to around 1 million people, where water production has halved and food prices have soared by at least 50 per cent. Hospitals are running out of fuel and medicines, he added.

He said he spoke with Yemen’s Foreign Minister Afrah Abdulaziz Al-Zouba about the crisis, adding that humanitarian partners have reached nearly 260,000 displaced people, but “needs are outpacing our response.”

Oil prices rose more than $1, as an Iranian official said a deal to the end the war was far off, while the United States struck Iran’s Qeshm Island, fuelling concerns over the escalation of hostilities and risks to energy supplies, Reuters reports.

US West Texas Intermediate crude was up $1.6, or 1.66 per cent, at $98.06 a barrel while Brent crude futures rose $1.84, or 1.76pc, to $106.61 a barrel by 0744 GMT.

Both benchmarks had dropped more than 7pc on Monday as talks between Iranian and Qatar officials lifted hopes for an end to the US-Israeli war with Iran that were soon dashed.

The 2027 Asian Cup football tournament in Saudi Arabia will be postponed from January to December due to “exceptional circumstances” in the region, the continent’s governing body said, Reuters reports.

A number of sports events in Saudi Arabia have been cancelled or postponed in recent weeks following Houthi attacks on the country.

The Asian Cup was originally scheduled to take place from January 7 to February 5 next year.

The new dates for the continental showpiece are December 23, 2027, to January 21, 2028.

“The organising committee for AFC Asian Cup approved to reschedule the flagship national team tournament in light of the current exceptional circumstances arising from developments in the region,” the Asian Football Confederation said in a statement.

German airline giant Lufthansa said it expects its 2026 fuel costs to be two billion euros ($2.24 billion) higher than last year as the Iran war keeps global energy prices elevated, Reuters reports.

Releasing third quarter results, the group predicted its fuel bill across the full year will come in at 9.3 billion euros.

That is 600 million higher than it had anticipated just a few months ago, as the US war against Iran drags on.

The group, which also operates carriers including Swiss, Brussels and Eurowings, also slightly downgraded its forecast for core profit to a range of between 1.7 and 2.0 billion euros for 2026.

Previously it predicted a range of between 1.7 and 2.2 billion euros.

Iran’s parliament speaker and chief negotiator in talks with the United States, Mohammad Bagher Ghalibaf, said that the ball was in Washington’s court to “prevent war,” AFP reports.

“The countries of the region should know that, just as the Islamic Republic of Iran stands ready for battle with its finger on the trigger, it has also given the American side a powerful and rational response,” he said in a televised speech. “The ball is now in America’s court to prevent war”.

Talks between Iran and Saudi Arabia are ongoing as Tehran aims to reach new regional security arrangements for countries in the region without foreign military involvement, Iranian Foreign Minister Abbas Aragchi said on X.

Last week, top officials from Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran, the first high-level contact between Iran and the three nations since August. The US-Israeli war on Iran started in late February and since then, fighting has spread to Saudi Arabia and Yemen.

Riyadh said the visit was intended to open negotiating channels to “prevent the return of military escalation,” as fighting between Saudi Arabia and Yemen’s Iran-aligned Houthis had intensified in recent weeks.

Saudi oil giant Aramco announced a 34.6 per cent surge in third-quarter net profit, as the Middle East war keeps crude prices soaring while the kingdom’s energy infrastructure comes under regular attack, Reuters reports.

Yemen’s Iran-backed Houthis have targeted Saudi tankers, pipelines, storage facilities and refineries regularly since hostilities resumed in July, intensifying their strikes in recent weeks.

The kingdom has also had to contend with the Houthis and Iran hampering traffic in the straits of Bab al-Mandeb and Hormuz, complicating exports.

Yet Aramco – the cornerstone of Saudi Arabia’s economy and one of the world’s most valuable companies – saw its profits soar during the third quarter thanks in large part to stubbornly high oil prices.

US Vice President JD Vance says Washington has made progress in indirect peace talks with Iran, while Tehran insists the US must lift its naval blockade before an agreement can be reached, Al Jazeera reports.

AS the threat of renewed US-Israeli strikes on Iran lingers, a parallel diplomatic process — facilitated by Qatar and Pakistan — is attempting to avert a devastating return to hostilities.

Iranian negotiators were in Doha on Sunday to take part in indirect talks aimed at working out a deal, even as speculation of fresh attacks on Iran, following today’s midterm polls in America, continued.

US President Donald Trump has not helped matters by toying with the idea of new attacks. The ice was broken late last month when US Vice-President J.D. Vance wrote a letter to Iran’s security chief Mohsen Rezaei.

Mr Vance reportedly prefers a diplomatic solution. Earlier, he had led his country’s delegation during April’s historic talks in Islamabad. The letter has been well received in Tehran, with Gen Rezaei calling its tone “positive”.

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The reports of US strikes on Iran’s Qeshm island have come after President Donald Trump signalled progress in talks with Iran to avoid a return to war.

A deal with Tehran “could happen,” Trump wrote on his Truth Social platform, according to AFP.

“Iran wants a settlement, as soon as possible,” he said.

Iranian state broadcaster IRIB has reported the destruction of two MQM-170 drones south of Qeshm Island by “electronic warfare systems of Iran’s Aerospace Force”.

Australia’s central bank raised its key interest rate to a 18-year high, citing the prolonged war in the Middle East and persistent inflationary pressures.

In a statement, the Reserve Bank of Australia said it would lift its cash rate by 25 basis points to 4.85 percent.

“Inflation remains elevated,” it said. “This partly reflects higher fuel and other commodity prices affected by the conflict in the Middle East.”

“AI-related investment is driving rapid growth in prices for technology-related goods, and inflation in many goods and services remains high.”

The hike is the fifth this year, adding to cost-of-living pressures felt by households by increasing home mortgage payments, a politically potent topic in Australia.

Oil prices rise in early trade on Tuesday following a report that the US has struck Iran’s Qeshm Island. Brent crude futures have gained 48 cents, or 0.5 per cent, to reach $105.25 a barrel as of 06:04 Pakistan time.

US West Texas Intermediate (WTI) crude has gone up 47 cents, also 0.5pc, to $96.93.

The gains come after oil settled lower on Monday, according to market data.

Brent futures had settled $8.66, or 7.63pc, lower, at $104.77 a barrel on Monday.

Yemen’s internationally recognised government says its forces have recaptured positions from Houthi forces in Lahij governorate in the south-west of the country, Al Jazeera reports.

“Our armed forces have succeeded in recapturing positions in the al-Khazzan al-Ahmar area on the al-Nusayrah front in the al-Sawalihah sub-district of the al-Maqatirah district in northern Lahij governorate, and have repelled the terrorist Houthi militias,” the government forces’ media centre says in a social media post.

It adds that forces were engaged in fighting with Houthis in the Mu’ayq and An’an areas of the al-Maqatirah front.

The media centre has also reported that forces have repelled a Houthi advance towards the Al-Kurbah and Hijat al-Abd front in northern Lahij.

The US has carried out strikes on Iran’s Qeshm Island in the Strait of Hormuz, a US official says.

The strikes, earlier reported by the Wall Street Journal, appear to be limited and are not a resumption of major combat operations, the official says, speaking on the condition of anonymity.

Another official says the strikes are defensive measures against Iranians using surface-to-air missiles against US assets.

Earlier on Monday, Iranian state media outlet IRNA reported that there were several explosions on Qeshm Island.

Fox News, citing officials, says the strikes are defensive and have been carried out in response to Iran firing at a US aircraft.

Saudi Defence Minister Khalid bin Salman has said he held a phone call with US Secretary of War Pete Hegseth, and the two reviewed the prospects of strategic cooperation in defence.

“We also discussed the latest regional and international developments, foremost among them the efforts to de-escalate and contain the tensions in the region, and the continued terrorist attacks by the Houthi militia on the kingdom,” he posted on X.

Al Jazeera reports that Yemen’s internationally recognised government forces have launched a counterattack against the Houthis, recapturing more territory in the province of Taiz.

In a post on Facebook, the official page of the Al-Aqroud Front’s Fifth Battalion, 35th Brigade says the Yemeni army, along with Popular Resistance fighters, secured control over the hills of Tabat Wathib and Habil al-Saram during fierce battles with the Houthis.

Coalition forces says dozens of Houthi fighters were killed or injured.

Iranian Army Deputy Chief for Executive Affairs Brigadier General Alireza Sheikh claims that during hostilities, 17 US bases in the region were damaged, 65 per cent of its Patriot interceptor missiles were used, and the Pentagon incurred more than $47 billion in direct costs, state broadcaster Press TV reports.

“America’s greatest military setback goes beyond casualties and material losses; it lies in the collapse of the image of power it spent years and vast resources building,” he is quoted as saying.

“[The] US entered the war to restore its superpower image and show it could impose its will through military force. But the battlefield exposed the limits of that power, showing that military superiority does not guarantee political or strategic success,” he adds.

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.