EXPLAINER

Iranian media are reporting that a deal may not be reached amid disagreements on some key issues.

United States President Donald Trump has told his representatives not to rush into any deal with Iran, as his administration played down hopes of an imminent breakthrough in the three-month-old war that had been raised a day earlier.

The US blockade on Iranian ships in the Strait of Hormuz would “remain in full force and effect until an agreement is reached, certified, and signed”, Trump wrote on Truth Social a day after he said a deal had “largely been negotiated”, which included the reopening of the vital waterway.

There was no immediate response from the Iranian government. However, the Tasnim news agency, which is linked to the Islamic Revolutionary Guard Corps (IRGC), said the US was still obstructing parts of a potential deal, including Tehran’s demand for the release of frozen funds.

The two sides remain at odds on several difficult issues, such as Iran’s nuclear ambitions, Israel’s war in Lebanon and the lifting of sanctions on Tehran and the release of its frozen foreign assets worth billions of dollars.

As the war enters its 87th day on Monday, here is what is happening:

In Iran

• Iranian state media reported that a man, identified as Abbas Akbari, was executed over charges pertaining to the nationwide antigovernment protests in January.
• A liquefied natural gas (LNG) tanker was exiting the Strait of Hormuz and heading to Pakistan on Monday, while a China-bound supertanker with Iraqi crude left the Gulf on Saturday after being stranded for nearly three months, shipping data showed.

War diplomacy

• A senior Trump administration official told reporters an agreement would not be signed on Sunday, saying the Iranian system did not move fast enough, the Reuters news agency reported. But he outlined what he said were the latest contours of what was being negotiated.
• The official, speaking on condition of anonymity, said Iran had agreed “in principle” to open the Strait of Hormuz, in exchange for the US lifting its naval blockade, and to dispose of Tehran’s highly enriched uranium. He said the US understood Iran’s Supreme Leader Mojtaba Khamenei had endorsed the broad template of the deal. There was no immediate confirmation from Iran or elaboration on what an “in principle” agreement meant.

In the US

• “We’re either going to have a good agreement, or we’re going to have to deal with it another way. We’d prefer to have a good agreement,” US Secretary of State Marco Rubio told reporters in New Delhi, India, on Sunday. “The president is not going to make a bad deal – he’s just not,” he added. He added that a “pretty solid” proposal is on the table.
• Trump is facing intensifying pushback from prominent hawks within his Republican Party, including Senators Ted Cruz and Lindsey Graham, who are opposed to a negotiated end to the US-Israel war on Iran.

Global economy

• India retailers raise fuel prices: State-owned ⁠fuel ⁠retailers in India have increased diesel ⁠prices by 2.71 ⁠rupees ($0.0283) per litre and petrol by 2.61 rupees, dealers say. It was the fourth hike in ⁠May as authorities ⁠try to recoup losses driven ⁠by higher crude ⁠costs ⁠due to the war on Iran.
• Nikkei breaches historic 65,000 mark: Reuters reported that the share average of Japan’s Nikkei Stock surpassed the 65,000 threshold for the first time, driven by increased appetite for risk assets amid growing optimism surrounding a potential agreement to end the war.

In Lebanon

• Two houses were destroyed in Arzoun town in southern Lebanon’s Tyre area in an Israeli air attack, the National News Agency reported. Rescue teams were on site to evacuate the injured. Israel has continued attacks despite a ceasefire.
• The Israeli military said one soldier was killed during combat in southern Lebanon, adding that another one was severely injured in the incident and rushed to hospital.
• Al Jazeera’s Zeina Khodr reported that Israeli drones were hovering over the Lebanese capital for the second consecutive day.
• Lebanese President Joseph Aoun released a statement observing Resistance and Liberation Day, which marks the date in 2000 when Israel ended its 22-year occupation of southern Lebanon. “The path to a complete Israeli withdrawal remains a steadfast national demand, one that the Lebanese state is working to achieve through negotiations,” he said.