US imposes sanctions on Iran officials as Gaza peace talks continue

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Oil prices tumbled on Thursday after US President Donald Trump moderated his rhetoric on Iran, while US stocks bounced back after two down days.

International oil benchmarks Brent North Sea crude and West Texas Intermediate slumped more than four percent after Trump on Wednesday said he would "watch it and see" on possible intervention in the Islamic republic.

Trump added that he had been told that the killings of protesters there had stopped.

Crude prices had surged over recent days as Trump talked about coming to the aid of the Iranian people over the crackdown on demonstrations, sparking concerns over possible disruption to global supplies.

"As tensions are dialled down between Iran and the US, the political risk premium is rapidly getting priced out of the oil price," said XTB research director Kathleen Brooks.

Anti-narcotics authorities from Syria and Iraq have seized 2.5 million captagon stimulant pills after carrying out raids in both countries, Syria's interior ministry said on Thursday.

Two people were arrested in Syria and one in Iraq in the joint operations, the ministry said in a statement.

The ministry said the successful raids were "the result of systematic intelligence work" between Damascus and Baghdad.

The arrests took place in "the governorates of Homs and Rural Damascus" in Syria and "territory inside the Republic of Iraq", it added.

Syrian state media SANA said the operation was a "major bust" which "disrupted the network's operational and logistical capabilities" by cutting off one of the network's main trafficking routes, without specifying.

A senior figure in the armed wing of Hamas, a Hamas policeman, and a senior figure in the Islamic Jihad were among at least ten people killed on Thursday in a series of Israeli strikes across Gaza, according to local sources.

Local medics and residents reported the deaths of senior Islamic Jihad operative Ashraf Al-Khatib in Nuseirat and a Hamas policeman in Gaza City. A Hamas source said that local commander Mohammed Al-Holy was killed in Deir al-Balah earlier in the day.

Hamas condemned the strikes on the Al-Holy family in a statement that did not mention Mohammed or his role in the group. It accused Israel of violating the ceasefire deal in place since October and attempting to reignite the conflict.

A senior UN official warned on Thursday that threats of military action against Iran, like those made by US President Donald Trump, increased "volatility" in the protest-torn country.

"We note with alarm various public statements suggesting possible military strikes on Iran. This external dimension adds volatility to an already combustible situation," UN Assistant Secretary-General Martha Pobee told the UN Security Council.

"All efforts must be undertaken to prevent any further deterioration."

The US on Thursday criticised Iran's presence at naval drills off South Africa's coast as "particularly unconscionable" given the regime's crackdown on protests.

Vessels from China, Iran, Russia and the United Arab Emirates sailed into waters off Cape Town around a week ago to take part in the exercises as part of the BRICS grouping of nations.

Reports in local media said the South African government had sought to have Iran drop out of the China-led drill, which is taking place amid a crackdown in Iran that activists say left thousands dead.

"Iran is a destabilising actor and state sponsor of terror, and its inclusion in joint exercises, in any capacity, undermines maritime security and regional stability," the US embassy in South Africa posted on Facebook.

"It is particularly unconscionable that South Africa welcomed Iranian security forces as they were shooting, jailing, and torturing Iranian citizens engaging in peaceful political activity that South Africans fought so hard to gain for themselves," it said.

The United States stands by the "brave people of Iran" and President Donald Trump "has made it clear all options are on the table to stop the slaughter," US Ambassador to the United Nations Mike Waltz told the UN Security Council on Thursday.

British Foreign Minister Yvette Cooper said on Thursday that she welcomed the commitment to move to phase two of the peace plan in Gaza, including the announcement of the Palestinian National Committee to administer Gaza.

"It's critical we build momentum to sustain the ceasefire, address the dire humanitarian conditions in Gaza with increased aid, remove the threat from Hamas, and deliver long-term peace for Israelis and Palestinians," she said in a statement.

"All parties must deliver on their commitments under President Trump's 20 Point Peace Plan." 

A top United Nations official on Thursday called for accelerating reconstruction work in Gaza, saying Palestinians there were living in "inhumane" conditions, even as a US-backed truce entered its second phase.

"I wouldn't have imagined what I saw today, which is total destruction, not much is standing," Jorge Moreira da Silva, head of UN Office for Project Services (UNOPS), told journalists after a visit to the Gaza Strip.

"We can't wait, we can't procrastinate," he said, adding that Gazans across the territory were living in an "inhumane situation".

Switzerland on Thursday summoned Iran's ambassador in Bern to voice its "greatest concern" over his country's crackdown on nationwide protests, which activists say have left thousands dead, a foreign ministry official said.

With the summons, Switzerland's foreign ministry had wanted to convey that "we don't understand such violence", Monika Schmutz Kirgoz, who heads the ministry's Middle East and North Africa division, told the RTS public broadcaster.

When Switzerland on Thursday joined a number of other European nations in summoning their Iranian ambassador in condemnation of the crackdown, it had expressed "our greatest concern regarding the violence we have witnessed perpetrated by the Iranian security forces", Schmutz Kirgoz said.

Bern had also reiterated that "we are firmly and strongly opposed to any form of the death penalty", she added.

US President Donald Trump is closely monitoring the situation on the ground in Iran, White House spokeswoman Karoline Leavitt said on Thursday, adding that Trump and his team have warned Tehran there would be “grave consequences” if killings linked to its crackdown continue. 

Iran halted 800 executions under pressure from President Donald Trump over its crackdown on a wave of protests, but US military action remains an option, the White House said Thursday.

"The president understands today that 800 executions that were scheduled and supposed to take place yesterday were halted," Press Secretary Karoline Leavitt told reporters.

"All options remain on the table for the president," she said, adding that Trump had warned Tehran of "grave consequences" if the killing of demonstrators continued.

Four Arab states conducted intense diplomacy with the United States and Iran this week to prevent a threatened US attack on Iran over Tehran's use of force against protesters that they feared would have impacts across the region, a Gulf official said.

Saudi Arabia, Qatar, Oman and Egypt were involved in the diplomacy over 48 hours before US President Donald Trump signalled on Thursday that he had ultimately decided against an attack for now, saying the killings in Iran were easing.

The four countries had conveyed to Washington that any attack would have consequences for the wider region in terms of both security and economics that would ultimately impact the United States itself, the official said, speaking on condition of anonymity due to the sensitivity of the matter.

They told Iran that any retaliatory attack it launched on US facilities in the Gulf would have consequences for Tehran's relations with other countries in the region, the official added.

Saudi Arabia's international media office, Qatar's Foreign Ministry, Oman's Information Ministry and Egypt's Foreign Ministry spokesperson did not immediately respond to requests for comment.

A US appeals court overturned a ruling that led to the release of prominent pro-Palestinian protest leader Mahmoud Khalil, according to court documents filed Thursday, raising the prospect of his re-arrest.

New Jersey federal judge Michael Farbiarz had ruled that Khalil's detention by immigration authorities was unlawful. But Thursday's ruling by the Philadelphia-based appeals court said Farbiarz did not have "subject-matter" jurisdiction in the case and that an immigration court should have adjudicated it.

"Today's ruling is deeply disappointing, but it does not break our resolve," Khalil said in a statement.

"The door may have been opened for potential re-detainment down the line, but it has not closed our commitment to Palestine and to justice and accountability."

The ruling, which could be appealed, does not take immediate effect, meaning Khalil will remain free for now.

 Two Israeli airstrikes killed five people in Deir al-Balah in the Gaza Strip on Thursday, local health authorities said, and Palestinian media reported that one of those killed was a senior figure in the armed wing of Hamas.

Two Israeli airstrikes killed five people in Deir al-Balah in the Gaza Strip on Thursday, local health authorities said, and Palestinian media reported that one of those killed was a senior figure in the armed wing of Hamas.

The Israeli military did not immediately respond to a Reuters request for comment on the incident. Palestinian media identified him as Mohammed Al-Holy, describing him as a local Hamas commander in Deir Al-Balah. The group did not immediately respond to a Reuters request for comment.

More than 400 Palestinians and three Israeli soldiers have been reported killed since a fragile ceasefire took effect in October.

Israel has razed buildings and ordered residents out of more than half of Gaza where its troops remain. Nearly all of the territory's more than 2 million people now live in makeshift homes or damaged buildings in a sliver of territory where Israeli troops have withdrawn and Hamas has reasserted control.

The United Nations children agency said on Tuesday that over 100 children have been killed in Gaza since the ceasefire, including victims of drone and quadcopter attacks.

Israel and Hamas have traded blame for violations of the ceasefire and remain far apart from each other on key issues, despite the United States announcing the second phase of the ceasefire on Wednesday.

Israel launched its operations in Gaza in the wake of an attack by Hamas-led fighters on October, 2023 which killed 1,200 people, according to Israeli tallies.

Israel's assault has killed 71,000 people, according to health authorities in the Strip, and left much of Gaza in ruins.

The nationwide shutdown of the internet by authorities in Iran, which activists fear is aimed at masking the true scale of a crackdown on protests, has now lasted a full week, a monitor said Thursday.

"Exactly one week ago... Iran fell into digital darkness as authorities imposed a national internet blackout," Netblocks said in a social media post.

Wall Street stocks rose early Thursday on easing worries about Iran following President Donald Trump's latest comments and gains by semiconductor equities.

Oil prices tumbled after Trump appeared to back off a military response in Iran, saying he had received assurances that protesters would not be executed.

Asked if US military action was now off the table, Trump replied: "We're going to watch it and see what the process is."

About 20 minutes into trading, the Dow Jones Industrial Average was up 0.4 percent at 49,322.07.

The broad-based S&P 500 climbed 0.5 percent to 6,965.99, while the tech-rich Nasdaq Composite Index advanced 0.7 percent to 23,642.32.

Adam Sarhan of 50 Park Investments described Thursday's early action as a "big relief rally."

Strong results from Taiwan Semiconductor Manufacturing Company lifted shares by more than five percent, while Nvidia, Micron and other US chip companies also gained.

Goldman Sachs rose 1.7 percent and Morgan Stanley won 3.2 percent after both firms scored higher profits on a surge in merger advisory services.

Four people accused of a kidnapping in Lebanon for Israel's Mossad spy agency last month have been charged, a judicial official said on Thursday, after a retired security officer whose brother was linked to an Israeli airman's disappearance went missing.

Israel has apprehended suspects in Lebanon before and Mossad is accused of regularly attempting to contact Lebanese people to facilitate its operations, while Lebanon has arrested dozens of people on suspicion of collaborating with Israel over the years.

Lebanese authorities believe the agency known for espionage operations outside of Israel's borders was behind the disappearance of retired security officer Ahmad Shukr last month.

Shukr, whose brother Hassan is suspected of involvement in the 1986 capture of Israeli air force navigator Ron Arad, disappeared in the Bekaa region of eastern Lebanon.

Authorities have arrested and charged one Lebanese man and charged three more who remain at large.

The four were charged with "communicating with and working for Mossad within Lebanon in exchange for money, and carrying out the kidnapping of Ahmad Shukr", a judicial official told AFP on condition of anonymity.

The three are "a Lebanese woman, a Lebanese-French man, and a Syrian-Swedish man," the official said.

The Israeli airman Ron Arad, whose plane went down in southern Lebanon during the country's civil war between 1975 and 1990, is now presumed dead and his remains were never returned.

Hassan Shukr was killed in 1988 in a battle between Israeli forces and local fighters, including from the Iran-backed Hezbollah militant group, a source close to the family told AFP last month, requesting anonymity.

Iran's hardline judiciary chief has personally interrogated protesters arrested in a crackdown that has sparked an international outcry, amplifying fears among rights groups about the use of "forced confessions" to instil fear in society.

On Thursday, state television showed Gholamhossein Mohseni Ejei, who has spent his career at the heart of the Islamic republic's legal apparatus and has been sanctioned by both the European Union and United States, quizzing several people the authorities accuse of being "rioters".

It aired footage of the former intelligence minister and top Tehran prosecutor interrogating two detained women, their faces blurred, both of whom broke down in tears while questioned.

The day earlier, he had spent five hours inside one of the prisons of Tehran to examine the cases of prisoners arrested in the protests, state television said, showing him interrogating some detainees.

According to rights groups, state television has broadcast dozens such "confessions" of individuals accused of attacks on security forces and other acts of violence in the demonstrations.

"State media began airing the forced confessions of protesters within days of the outbreak of protests," said Norway-based Iran Human Rights.

"Confessions that were obtained under coercion and torture being aired prior to legal proceedings violate the right of defendants to be presumed innocent until proven guilty," it added.

In another example, the US-based Human Rights Activists News Agency said two teenage girls arrested in the central city of Isfahan were shown in "forced confessions" saying they received money from an individual to participate in street protests.

The use of such alleged admissions comes against the backdrop of a crackdown that rights group say has left thousands dead in rallies that have openly challenged the authority of supreme leader Ayatollah Ali Khamenei.

A Canadian citizen has died "at the hands of the Iranian authorities," Ottawa said Thursday, with the Islamic republic gripped by nationwide protests.

"I have just learned that a Canadian citizen has died in Iran at the hands of the Iranian authorities," Canada's Foreign Minister Anita Anand said on X, giving no further details.

She added that Tehran's response to the "peaceful protests" has "led the regime to flagrantly disregard human life."

Yemen's eight-seat presidential body on Thursday dismissed its last UAE-backed member, a southern separatist, consolidating Saudi Arabia's full control over the country's decision-making body.

In December, forces from the UAE-backed Southern Transitional Council briefly captured two key provinces, infuriating Saudi Arabia, which rolled back their land grab with air strikes and allies on the ground.

"It was decided to terminate the membership of Faraj Salmeen Al-Bahsani in the Presidential Leadership Council," the Saudi-backed body said in an official resolution.

Bahsani is a vice president of the STC who has been getting treatment in the United Arab Emirates and was governor of oil-rich Hadramawt province, Yemen's largest and one of the two provinces the separatists had seized.

Earlier this month, STC leader Aidarous al-Zubaidi, who was also a PLC member, was sacked after he was accused of "high treason".

The resolution dismissing Bahsani cited a series of reasons including his support for Zubaidi and the STC's takeover, as well as statements that he gave.

The security warning level at the U.S. Al Udeid air base in Qatar has been lowered after a heightened alert triggered on Wednesday, Reuters news agency reported on Thursday, citing three sources briefed on the situation.

U.S. aircraft that were moved out of Al Udeid on Wednesday are gradually returning to the base, one of the sources added.

The other two sources, both diplomats who spoke on condition of anonymity, said that some personnel who were advised to leave the base on Wednesday have also been permitted to return.

The US embassy in Qatar did not immediately comment following the Reuters report.

The Israeli military issued an evacuation warning on Thursday for the village of Sohmor in southern Lebanon ahead of air strikes on Hezbollah targets in the area.

"Urgent warning to the residents of South Lebanon, specifically in the village of Sohmor," the military's Arabic-language spokesman Colonel Avichay Adraee wrote on X.

"The [Israeli military] will attack Hezbollah terrorist military infrastructure in the near future to address prohibited attempts to rebuild its activities in the region."

Saudi Arabia, Qatar and Oman led efforts to talk US President Donald Trump out of an attack on Iran, fearing "grave blowbacks in the region", a senior Saudi official told AFP news agency on Thursday.

The Gulf trio "led a long, frantic, diplomatic last-minute effort to convince President Trump to give Iran a chance to show good intention", the official said on condition of anonymity, adding that dialogue was continuing.

Some personnel were moved out of a major US military base in Qatar on Wednesday, and staff at US missions in Saudi Arabia and Kuwait were warned to exercise caution as fears mounted of a US attack over Iran's crackdown on protesters.

The United States has repeatedly warned it could intervene against a deadly Iranian government crackdown on protests, while Tehran has said it would retaliate with strikes on US military and shipping targets.

Many US bases and assets are located in the Gulf.

But after several threats Trump changed course, saying he had received assurances from "very important sources on the other side" that Iran would not execute demonstrators.

The Gulf efforts aimed to "avoid an uncontrollable situation in the region", the Saudi official said.

"We told Washington that an attack on Iran would open the way for a series of grave blowbacks in the region," the official added.

"It was a sleepless night to defuse more bombs in the region... the communication is still underway to consolidate the gained trust and the current good spirit."

Another Gulf official said "the message conveyed to Iran has been that an attack on US facilities in the Gulf would have consequences on relations with countries in the region".

Syrians began fleeing an area east of Aleppo city on Thursday after the army gave civilians a deadline to leave amid fears of an escalation in clashes with Kurdish forces.

The government is seeking to extend its authority across the country following the ouster of longtime leader Bashar al-Assad a year ago.

On Sunday, government troops took full control of Aleppo city over the weekend after capturing two Kurdish-majority neighbourhoods.

It reached a deal in March to fold a Kurdish de facto autonomous administration in the north into the state, but progress on its implementation has stalled.

AFP news agency reported that near Deir Hafer, one of the Kurdish-controlled towns being eyed by Damascus, many cars, trucks and civilians on foot were seen leaving through a corridor set up by the army on Thursday, but the road was due to close at 5:00 pm (1400 GMT).

The area targeted extends from near Deir Hafer, around 50 kilometres (30 miles) from Aleppo, to the Euphrates River about 30 kilometres further east, as well as towards the south.

Damascus, which has deployed forces to the region, also accused Kurdish forces of barring the civilians from leaving.

Farhad Shami, spokesperson for the SDF, told AFP the accusations were "unfounded".

Palestinian President Mahmoud Abbas will visit Moscow on January 21-22, Russian news agency TASS reported on Thursday, citing the Palestinian embassy. 

Israeli Prime Minister Benjamin Netanyahu cast the announcement that the fragile ceasefire in Gaza would advance to its second phase as largely symbolic, raising questions about how its more challenging elements will be carried out.

Speaking with the parents of the last Israeli hostage whose remains are still in Gaza, Netanyahu said the governing committee of Palestinians announced as part of the second phase was merely a “declarative move,” rather than the sign of progress described by US envoy Steve Witkoff.

Israeli police officer Ran Gvili's parents had earlier pressed Netanyahu not to advance the ceasefire until their son's remains were returned, which Israel’s Hostage and Missing Families Forum said Wednesday the prime minister had promised.

As the plan was announced, Netanyahu told Gvili’s parents that his return remained a top priority.

The announcement of the ceasefire's second phase marked a significant step forward but left many questions unanswered.

Those include the makeup of a proposed, apolitical governing committee of Palestinian experts and an international “Board of Peace."

They also include the timing of deployment of international forces and reopening of Gaza’s southern Rafah border crossing, as well as concrete details about disarming Hamas and rebuilding Gaza.

Portugal on Thursday announced a "temporary" closure of its embassy in Tehran, citing a "context of tension", and advised its nationals not to travel to Iran.

Portugal's foreign ministry said in a statement that eight Portuguese citizens had already left Iran, and others were preparing to do the same.

Another 10 Portuguese passport holders, including seven dual nationals, had decided to remain in the country, the ministry said.

The embassy closure was decided Wednesday, a day after the government summoned Iran's ambassador to lodge its protest against the violent repression of demonstrations against the regime, and to urge Tehran to respect the rights of Iranian citizens.

In a separate statement, posted on X, Foreign Minister Paulo Rangel said that Portugal was ready to join any concerted tightening of sanctions against Iran by the European Union.

Iran will defend itself "against any foreign threat," the country's foreign minister told his Saudi counterpart Thursday, as Washington refuses to rule out military strikes over the Iranian crackdown on protesters.

Iranian Foreign Minister Abbas Araghchi told Saudi's Faisal bin Farhan in telephone talks of the importance of "global condemnation of foreign interference in the internal affairs of regional countries", according to a statement on his Telegram channel.

The Saudi Press Agency confirmed the talks, saying "they discussed developments in the region and how to enhance its security and stability".

Turkish Foreign Minister Hakan Fidan said on Thursday that the peace process with the outlawed Kurdistan Workers Party (PKK) group should not become a missed opportunity, adding that Ankara hopes the process will continue.

Fidan told a press conference in Istanbul that the PKK's reluctance to take steps in Iraq and Syria may stem from the group assessing how regional developments will settle, but stressed that Turkey expects progress to be made.

Three detained pro-Palestinian activists awaiting trial in the UK have ended their hunger strike after 73 days, a campaign group said.

The three began "refeeding" on Wednesday, Prisoners for Palestine said in a statement late on Wednesday.

The decision leaves just one person still on hunger strike who started six days ago, it confirmed to AFP news agency. Four others called off their hunger strike earlier.

The detainees are due to stand trial for alleged break-ins or criminal damage on behalf of the Palestine Action campaign group before it was banned under anti-terrorism laws.

They deny the charges.

The group, aged 20-31, launched their hunger strike in November in protest at their treatment and called for their release from prison on bail as they await trial.

Prime Minister Keir Starmer previously said in parliament that all "rules and procedures" were being followed in their cases.

His government outlawed Palestine Action in July after activists, protesting the war in Gaza, broke into a UK air force base and caused an estimated £7 million ($9.3 million) of damage.

Some of those on hunger strike are charged in relation to that incident.

The inmates' demands included that the government lift its Palestine Action ban and close an Israel-linked defence firm.

Palestine Action co-founder Huda Ammori challenged the ban last July, and High Court judges are expected to rule at a later date on whether to uphold the prohibition.

Turkish Foreign Minister Hakan Fidan said on Thursday that Turkey does not condone the possibility of using violence against Iran and that the priority is to avoid destabilisation as Iran continues its crackdown on protests.

Speaking at a press conference in Istanbul, Fidan said that Turkey will continue its diplomatic initiatives regarding Iran, and added Ankara hoped Iran and the United States could find a solution to their conflict.

The UK government on Wednesday said it advises against all but essential travel to Israel, revising its earlier advisory that warned against travel to only some parts of the country.

"There is a heightened risk of regional tension. Escalation could lead to travel disruption and other unanticipated impacts," the British foreign office said in an update to its travel advice page.

The UN Security Council is slated to meet Thursday afternoon for "a briefing on the situation in Iran," according to a spokesperson for the Somali presidency.

The scheduling note said the briefing was requested by the United States.

India's foreign ministry has urged its citizens to leave Iran, where rights groups say a crackdown on mass protests has killed and arrested thousands of people.

India's foreign ministry estimates there are usually around 10,000 citizens in Iran.

"Indian nationals who are currently in Iran (students, pilgrims, business persons and tourists) are advised to leave Iran by available means of transport," the Indian Embassy in Tehran said, in a post on social media late Wednesday.

An Iranian man arrested during a wave of protests, who NGOs and Washington had warned faced imminent execution, has not been sentenced to death and is not facing charges that risk the death penalty, the judiciary said on Thursday.

Erfan Soltani is imprisoned in Karaj outside Tehran after his arrest and is facing charges of propaganda against Iran's Islamic system and acting against national security, the judiciary said in a statement carried by state TV.

He has "not been sentenced to death" and if he is convicted, "the punishment, according to the law, will be imprisonment, as the death penalty does not exist for such charges", it added.

Oil slid Thursday after US President Donald Trump appeared to dial down threats of imminent military action on Iran, while Asian markets were mixed after Wall Street edged lower the previous day.

Oil prices dropped three percent after Trump said Wednesday he would "watch it and see" on possible intervention in the Islamic republic, after he said he was told the killings of protesters there had stopped.

Crude prices had surged over recent days as Trump talked about coming to the aid of the Iranian people over the crackdown on demonstrations, sparking concerns over possible disruption to global supplies.

Silver plunged as much as seven percent after hitting a record high above $93.75 an ounce, after Trump held off slapping tariffs on critical minerals. Gold also dipped.

"The swings in commodities highlight the extreme volatility being fed by President Trump's mercurial policy style," said Garfield Reynolds, Markets Live Asia Team Leader at Bloomberg.

But "so far the declines for raw materials are still too small to seriously dent this year's substantial rallies", he said.

"There's plenty of potential that investors will be itching to pile back into commodities assets given how often they've bounced back to fresh highs following occasional corrections in recent weeks," Reynolds added.