Talks to reopen Hormuz ongoing, as Israel rejects Trump's Gaza plan

What began as negotiations ostensibly aimed at ending Israel's military presence in southern Lebanon and securing the release of Lebanese prisoners has become increasingly weighed down by a widening list of Israeli demands, some reaching back decades into Lebanon's turbulent history.

In the latest round of talks, Israel has asked Lebanon to facilitate the removal of the remains of Lebanese Jews buried in historic cemeteries in Beirut and Sidon and transfer their remains to Israel, according to reports citing sources familiar with the negotiations.

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Iranian Revolutionary Guard spokesman Hossein Mohebbi claimed that some Iranian missiles now have the ability to direct and change their course during flight, enabling them to evade air defense systems.

Mohebbi said, in a speech during a ceremony held in the city of Qazvin, northern Iran, on the occasion of “Journalists’ Day,” on Monday, according to the official Iranian news agency IRNA that Iran has developed its capabilities in the field of missile and drone technologies, pointing to the use of these capabilities during the recent war to target sites of what he described as "the enemy’s power network."

"Iranian missiles are no longer, as before, launched from one point only to fall at another point. Rather, they now have guidance and course-changing capabilities, and some of them can change their course during flight to avoid enemy air defense systems," Mohebbi said.

He added that Iran, in what he described as "technological warfare", does not only aim to destroy buildings and equipment, but also seeks to target its opponents' decision-making and defense networks.

Iranian President Masoud Pezeshkian said in an interview published on local media that he held a "very good meeting" with Supreme Leader Mojtaba Khamenei, which  lasted "seven hours."

Pezeshkian said that "during [the meeting], we discussed state issues. The Supreme Leader emphasised the importance of unity, that the enemy is now focused on creating division within our country."

"The Leader of the Revolution is completely healthy. He conveyed his instructions, and I presented to him concerns and problems, and he listened to me with great attention," he added.

Rezaee, 71, was named secretary of the Supreme National Security Council (SNSC) on Sunday, replacing Mohammad Bagher Zolghadr after just four months in the post.

The appointment came immediately after Supreme Leader Ayatollah Mojtaba Khamenei named Rezaee as one of his two personal representatives on the council, alongside former nuclear negotiator Saeed Jalili.

It places a figure who has served at the heart of the Islamic Republic since its earliest years in charge of coordinating its military, diplomatic and security establishment at another critical moment.

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During a phone call with Japanese Prime Minister Sanae Takaichi, Sultan of Oman Haitham bin Tariq discussed the latest developments in the region, bilateral relations, and ways to develop them in various fields.

Takaichi expressed her appreciation for the efforts of the Sultanate of Oman to support dialogue, calm, and enhance security and stability regionally and internationally.

Egyptian Foreign Minister Badr Ahmed Mohamed Abdelatty  and his Greek counterpart, Giorgos Gerapetritis, discussed regional security arrangements and ways to reduce escalation and enhance stability in the region.

During a phone call, Abdelatty  reviewed the Egyptian efforts aimed at resolving the current crisis through dialogue and diplomatic means.

The two ministers affirmed the continued strengthening of the strategic partnership and political and economic cooperation between the two countries.

S&P 500 and Nasdaq futures inched higher on Monday as investors assessed developments in the region that could influence the reopening of the Strait of Hormuz, kicking off the week laden with crucial inflation data and earnings.

Iran said it was close to a final agreement with Oman defining new shipping lanes between them through the strait but repeated that the US must meet several conditions before the strategic waterway is reopened.

The easing of energy flows through the crucial choke point could mitigate concerns over heightened oil prices that have spurred inflation concerns and chances of interest rate hikes by central banks around the world.

Against this backdrop, readings of consumer and producer prices due later this week could be key to garnering clues on the Federal Reserve's monetary policy path, given Fed Chair Kevin Warsh's stance of offering muted forward guidance.

When an official Israeli Foreign Ministry account published a map that appeared to redraw Lebanon’s southern border, officials in Beirut did not respond publicly. Rather, they quickly moved behind the scenes.

The map, posted on the Israeli ministry’s Arabic and English-language accounts on X, appeared to incorporate parts of southern Lebanon into Israel.

It was eventually deleted, but not before setting off concern among Lebanese officials that what Israel would later describe as merely "an artificial intelligence error" could point to territorial ambitions at a time when Israeli troops continue to occupy Lebanese land.

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The German government regards US President Donald Trump's latest Gaza plan as an opportunity to make progress towards the disarmament of Hamas, a German foreign ministry spokesperson said on Monday.

Asked in a regular news conference about Israeli Prime Minister Benjamin Netanyahu's rejection of the plan, the spokesperson also said some disagreement was to be expected.

"With such a complex undertaking, it was perfectly clear there would be many, many unanswered questions," he said. 

Israel has reportedly approved infrastructure work for a new residential zone in eastern Rafah, raising questions over whether reconstruction could entrench the military division of Gaza and create a new model of Israeli control over the enclave.

Prime Minister Benjamin Netanyahu and Defence Minister Israel Katz quietly authorised work in what Israeli media has called "Green Rafah", on the Israeli-controlled side of the Yellow Line, according to Israeli Army Radio.

The project is intended to house Palestinians outside Hamas control in an area of eastern Rafah that has been completely levelled and is currently empty.

But Daniel Levy, president of the US/Middle East Project and a former Israeli peace negotiator, told The New Arab that Green Rafah should not necessarily be seen as evidence of a single, settled Israeli blueprint for Gaza.

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UAE's state-run Cyber Security Council announced that it thwarted cyber attacks targeting the Gulf country’s aviation, energy and education sectors, Emirate's state news agency reported.

Tehran on Monday said Iranians had shown "they are professional chess players" in response to remarks by US President Donald Trump comparing his dealings with Iran to the board game.

Trump on Sunday signalled he was prepared to let economic pressure mount against Iran, apparently backing away from more military strikes after Tehran issued a list of demands for opening the Strait of Hormuz.

"Lights out or lights on, Iranians showed they are professional chess players," Iran's foreign ministry spokesman Esmaeil Baqaei said during a weekly press conference.

A British couple detained in Iran accused of spying have ended their latest months-long hunger strikes protesting their treatment in prison, their family said Monday.

Lindsay and Craig Foreman, both aged in their early 50s, were seized in January 2025 as they passed through central Iran while on a round-the-world motorbike trip.

They were each sentenced in February this year to a decade in prison on espionage charges that they deny, with two years subsequently added to Craig Foreman's term for talking to the media, his stepson said in July.

They launched their latest hunger strikes in May, protesting the "serious physical toll" their detentions were taking, with Craig Foreman lasting 93 days and his wife 84 days, according to their relatives.

A British couple detained in Iran accused of spying have ended their latest months-long hunger strikes protesting their treatment in prison, their family said Monday.

Lindsay and Craig Foreman, both aged in their early 50s, were seized in January 2025 as they passed through central Iran while on a round-the-world motorbike trip.

They were each sentenced in February this year to a decade in prison on espionage charges that they deny, with two years subsequently added to Craig Foreman's term for talking to the media, his stepson said in July.

They launched their latest hunger strikes in May, protesting the "serious physical toll" their detentions were taking, with Craig Foreman lasting 93 days and his wife 84 days, according to their relatives.

The Iranian Foreign Ministry spokesman noted that imposing fees on crossing the Strait of Hormuz is not on the table in negotiations with the Sultanate of Oman during the current stage, explaining that the talks are focused on establishing a safe navigation path in the Strait.

He added that the closure of the strait was not the result of disagreements with Muscat, but rather because of what he described as aggression and exploitation of the waterway by the United States.

US Democratic Senator Chris Murphy said that President Donald Trump "lost the war" against Iran, considering that the United States emerged weaker from it, while Tehran became in a stronger position.

During an interview broadcast on NBC News on Sunday, Murphy criticized the Trump administration for the war on Iran, claiming that a potential agreement was being discussed that would provide for the payment of $100 billion annually to Tehran in exchange for reopening the Strait of Hormuz.

Murphy believed that paying this amount would constitute a “victory” for Iran, and would allow it to support its forces and the forces loyal to it in the region, noting that the cost of reopening the Strait was rising day after day.

He called for an end to the attacks on Iran, stressing that he would not support financing the refilling of American ammunition stocks with the aim of enabling Washington to continue its military operations against Tehran.

Iran has changed its secretary of the Supreme National Security Council, appointing former Revolutionary Guards commander Mohsen Rezaei as second-in-command on the body that coordinates the country's security and foreign policy.

Rezaei is more of an outspoken public figure than his predecessor, Mohammad Baqer Zolqadr. The appointment was announced late on Sunday by President Masoud Pezeshkian's deputy director of communications.

Zolqadr had only been appointed as SNSC secretary in late March, after his predecessor, Ali Larijani, was killed in an air strike during the US-Israeli war on Iran.

Iran's foreign ministry spokesperson Baghaei, reacting to the "Mecca Joint Defence Agreement" between Saudi Arabia, Pakistan and Turkey, said that regional states have realised security is "not a commodity that can be purchased by lying brokers."

"Any plan that correctly identifies threats will contribute to regional security and prevent instability caused by Israel," he added. 

European shares were little changed on Monday as uncertainty over the reopening of the Strait of Hormuz kept oil prices elevated, while investors looked ahead to a packed week of economic data.

The pan-European STOXX 600 held its ground at 660.12 points, as of 0715 GMT.

The benchmark climbed 1.7% last week and closed at a record high on Friday, supported by expectations of lower U.S. borrowing costs after soft jobs data and strong corporate earnings on both sides of the Atlantic.

Trading got off to a subdued start on Monday as geopolitical risks remained in focus.

Iran said it was nearing a final pact with Oman defining new shipping lanes between them through the Strait of Hormuz but repeated that the U.S. must meet other conditions before the strategic waterway is reopened.

Europe's energy sector was up 0.5%, with Brent crude futures rising 0.6% to $83.98 a barrel as shipping through the vital waterway remained at a trickle.

The framework agreement reached between Oman and Iran to temporarily reopen the Strait of Hormuz could mark a very meaningful diplomatic breakthrough.

By establishing a mechanism for commercial vessels to transit the waterway through separate Iranian- and Omani-managed shipping lanes, the proposal offers a potential pathway to restoring maritime traffic through a critical chokepoint that carries around a fifth of globally traded oil.

The significance of the arrangement extends well beyond shipping. But whether it is ever fully implemented, let alone successful, will largely depend on the trajectory of US-Iran relations.

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Lebanon’s National News Agency reports Israeli forces attacks on the southern Lebanese towns of Wadi al-Salouqi and al-Mansouri.

The Yemeni military said seven people including military personnel and civilians were killed and 30 others wounded in a Houthi attack on the Red Sea port city of Mocha, civilian infrastructure and armed forces.

"Four members of the armed forces and three civilians have been killed, and 30 others injured," the Yemeni military said in a statement early on Monday.

Air defences intercepted and shot down 11 Houthi drones that participated in the attack, the military said.

Footage shown by Houthi-affiliated Al Masirah TV showed the launch of several ballistic missiles and drones, which Houthi military spokesperson Yahya Saree said in a post on Telegram targeted Saudi troop concentrations and weapons depots.

The Yemeni military said the Houthi attacks had also targeted residential neighbourhoods in Mocha.

Saudi Foreign Minister Prince Faisal bin Farhan discussed, by telephone, with Kuwaiti Foreign Minister Sheikh Jarrah Jaber Al-Ahmad Al-Sabah, efforts aimed at reducing the fallout of war in the region.

The Saudi News Agency (SPA) reported on Sunday evening that the two ministers discussed "during the call, which was initiated by Sheikh Jarrah Al-Sabah, the latest developments in the regional situation and efforts aimed at reducing the escalation, in a way that contributes to strengthening regional security and stability."

The call between the two foreign ministers focused on diplomatic efforts made to enhance security and stability in the region, in an indication of the continuation of Gulf consultations on ways to deal with regional developments and their security, political and economic repercussions, according to the Kuwaiti Ministry of Foreign Affairs.