JD Vance says Iran talks are being held in 'good faith', strikes are 'option B'

A magnitude 4.7 earthquake struck near Southern Iran on Wednesday, the European-Mediterranean Seismological Centre (EMSC) said.

The quake was at a depth of 14 km (8.7 miles), EMSC said.

Iran's Fars News Agency reported that a 4.7 magnitude earthquake struck parts of Hormozgan province and was felt by residents of Qeshm and Hormoz cities, as well as in rural areas in Bandar Abbas. Fras said the epicentre was near Bandar Laft at a depth of 20 km.

The director general of crisis management at the Hormozgan governorate told Iranian media that no damage had been reported so far from the earthquake, but assessments were ongoing.

US President Donald Trump on Tuesday told lawmakers at the White House that the United States "will end the war very quickly" with Iran.

US Central Command (CENTCOM) has said "89 commercial vessels have been redirected to ensure compliance" with a US naval blockade of Iran.

CENTCOM forces continue total enforcement of the U.S. blockade against Iran, stopping the flow of commerce into and out of Iranian ports. 89 commercial vessels have been redirected to ensure compliance. pic.twitter.com/0MWwUvkDgS

— U.S. Central Command (@CENTCOM) May 19, 2026

After a third round of US-brokered talks in Washington, Lebanese and Israeli delegations on Friday agreed to a 45-day extension of the 16 April ceasefire, setting the stage for future negotiations along security and political tracks.

Former ambassador Simon Karam led the Lebanese negotiating team opposite Israeli ambassador to the US Yechiel Leiter.

Both parties, for the first time, included military officials in addition to other deputies, and State Department counsellor Michael Needham replaced US Secretary of State Marco Rubio, the latter accompanying President Donald Trump on his visit to China.

The talks are fraught with stumbling blocks on all sides, from Israel’s intransigence to Lebanon's fragmented approach and the US administration's inability to mediate as a neutral party.

Despite Trump and Rubio personally backing the early talks, the framing of the negotiations has drawn criticism. "The practical upshot is humiliating Lebanon's authorities and failing to deliver a real ceasefire in exchange," Sam Heller, fellow at Century International, told The New Arab.

Read more of Paul Hefel-James' piece on the ongoing talks between Lebanon and Israel below:

European aviation giant Airbus has asked its teams to cut "non-essential expenses" by 10 percent due to turbulence following the Middle East war, according to a document seen by AFP.

"We are asking for your support in adopting several cost containment measures to help our company navigate this unstable situation," it said.

"Our specific focus is on significantly pausing all activities and costs that are not strictly essential to our industrial activities and operations ... We aim to reduce these costs by -10 percent compared to the 2025 baseline."

Airbus, contacted by AFP, declined to comment.

The memo asked teams not to "engage in any new expenses or any subcontracting activities that are not strictly essential", singling out "team events, team boosters, corporate events, events for other stakeholders, and participation in conferences and events".

It also asked teams not to enter into new agreements or activities, and to cut travel costs.

US Treasury Secretary Scott Bessent on Tuesday called on allies to more forcefully disrupt Iran's financing networks and said the Treasury would scrub its sanctions list of outdated designations to make it easier for financial institutions to root out the most sophisticated terrorist financing schemes.

Bessent told an anti-terrorism financing conference after G7 finance leaders met in Paris that participants needed to "stand with us in full measure" against Iran.

"That will require, for example, our European partners to join the United States in taking action against Iran by designating its financiers, unmasking its shell and front companies, shuttering its bank branches, and dismantling its proxies," Bessent said. "It will require those of you in the Middle East and Asia to root out Iran's shadow banking networks."

Bessent told Reuters in an interview that Iranian bank branches in Europe were not taking deposits but "that branch manager is doing something. Just close it."

His comments came as the Treasury imposed fresh sanctions on Iran's shadow tanker fleet and an Iranian foreign currency exchange house and what called other front companies.

Hezbollah on Tuesday reported clashes with Israeli troops in southern Lebanon despite a truce.

The group said its fighters "clashed.. with a force of the Israeli enemy army that tried to advance towards the vicinity of the town square of Haddatha," adding that "the clashes are still ongoing".

Meanwhile, the Lebanese health ministry said that an Israeli strike on south Lebanon on Tuesday killed at least 10 people, including three women and three children.

"An Israeli airstrike on the town of Deir Qanun al-Nahr in the Tyre district resulted in an initial toll of 10 martyrs, including three children and three women, in addition to three wounded, including a child", the ministry said in a statement, calling it a "massacre".

The Global Sumud Flotilla, a coalition of vessels sailing to break Israel's blockade of Gaza, has said that all of the boats in the latest convoy have been intercepted by Israel.

"We are awaiting more information about their illegal abduction," the group said, adding, "For Palestine We Won't Stop."

All boats have been intercepted.

We are awaiting more information about their illegal abduction.

For Palestine We Won’t Stop.https://t.co/6NRpc5SqEI pic.twitter.com/Y2VLcasmMS

— Global Sumud Flotilla (@gbsumudflotilla) May 19, 2026

Below is more on where the latest convoy was intercepted:

An Israeli reservist officer was killed in a firefight with Hezbollah in south Lebanon, according to the Times of Israel, citing the Israeli army.

According to the publication, the soldier, who was ranked Major and was the deputy commander of the 551st Brigade's 7008th Battalion, is the eighth soldier to be killed in combat since the ceasefire in Lebanon began.

Despite the ceasefire, fighting is still ongoing between Israel and Hezbollah, with Israel launching daily air and artillery strikes, and Hezbollah launching drones at Israeli positions and soldiers.

US Secretary of State Marco Rubio has discussed the ongoing conflict with Iran with UN Secretary General Antonio Guterres.

State Department spokesperson Tommy Piggot said that the two "discussed US efforts to stop the Islamic Republic of Iran's unlawful mining and tolling of the Strait of Hormuz, including a draft UN Security Council resolution, presented by the United States and Bahrain with the support of other Gulf partners."

"The Secretary emphasised the overwhelming support of a broad base of UN members for these efforts," Piggot added.

Rubio also posted about the conversation on X: 

Spoke with UN Secretary-General @antonioguterres about advancing @POTUS’ vision for a more effective, efficient, and accountable @UN focused on peace. I emphasized Luke Lindberg is the right leader for @WFP—his appointment is essential to ensuring @UN operates with the…

— Secretary Marco Rubio (@SecRubio) May 19, 2026

The US seized an Iran-linked oil tanker in the Indian Ocean overnight, the Wall Street Journal reported on Tuesday, citing three US officials.

The tanker, known as the Skywave, was sanctioned by the US in March for its role in transporting Iranian oil and was likely loaded with more than a million barrels of crude at Iran's Kharg Island in February, the report said.

Reuters could not immediately verify the report.

Several vessels have been seized by the US since the start of the ceasefire with Iran as it implements a blockade on Iranian ports in response to Iran's own blockade of the Strait of Hormuz.

As Israel's war on Gaza stretches into an open-ended phase of destruction, and the threat of annexation looms in the occupied West Bank, Fatah convened its eighth General Conference at a time of intense significance for Palestinian politics.

The gathering unfolded not only under the shadow of war, but also amid the accumulated pressures weighing on a political system that has steadily eroded over the past two decades, leaving it geographically fragmented, politically divided, and increasingly disconnected from its social base.

What was officially presented as a milestone of internal democratic renewal quickly evolved into a broader political indicator: a test of Fatah's ability to reproduce its leadership under conditions of extreme crisis.

It was also a measure of whether the Palestinian Authority (PA) - long dominated by the movement - can still project institutional continuity in the absence of national elections, unified representative bodies, or a functioning political horizon.

You can read more from Sally Ibrahim's piece on the the eight Fatah conference, and what it means for the future of the movement, below:

US Vice President JD Vance has told a press conference at the White House that talks with Iran are being held "in good faith", but that military options are still on the table.

"The president has asked us to negotiate in good faith and that's exactly what we've done," he said, adding that "we think that we've made a lot of progress. We think the Iranians want to make a deal."

He also said that military options were still on the table, however, which he called "option B".

"But that's not what the president wants and I don't think it's what the Iranians want either." 

He went on to reiterate that the US's main concern was about Iran's ability to obtain a nuclear weapon, saying, "we want to keep the number of countries that have nuclear weapons small, and that's why Iran cannot have a nuclear weapon."

Iran has always denied that its nuclear programme was military, saying that it's focused on civilian power and research applications.

US President Donald Trump "knows any move against Iran means facing a decisive military response and a unified nation," Iran's head of the parliamentary national security committee, Ebrahim Azizi, said in a post on X, referring to Trump's recent comments that he pulled back from striking Iran again after mediation efforts from Gulf states.

"He obviously does not care about the mediation of the Persian Gulf state heads," he continued, saying "power is the only language he understands."

Trump’s hesitation is rooted in one reality: he knows any move against Iran means facing a decisive military response and a unified nation.

He obviously does not care about the mediation of the Persian Gulf state heads.

Power is the only language he understands!

— ابراهیم عزیزی (@Ebrahimazizi33) May 19, 2026

Hamas has rejected a report by Trump's Board of Peace to the UN Security Council regarding delays in implementing the Gaza Strip roadmap and saying that its failure to disarm was the "principal obstacle" to full implementation of a ceasefire brokered last October.

It said that the report contained "misrepresentations" and adopted the Israeli narrative on the movement's weapons and governance of Gaza.

In a press statement issued Tuesday, the movement said the report ignored Israel's failure to uphold its commitments under the ceasefire agreement, as well as its continued closure of border crossings and prevention of the entry of reconstruction materials.

Israel has killed at least 880 people in near-daily deadly airstrikes on Gaza since the ceasefire came into effect.

However, the Board of Peace said in its report that "the principal obstacle to full implementation (of the ceasefire) remains Hamas’ refusal to accept verified decommissioning, relinquish coercive control, and permit a genuine civilian transition in Gaza".

You can read more on Hamas' rejection of the Board of Peace report below:

A United Nations expert on Tuesday raised alarm over the alleged "torture" of Palestinian prisoners and "potentially unlawful deaths" in Israeli prisons since October 2023.

The comments come as Israel faces growing scrutiny over detention conditions of Palestinian detainees during the Gaza war.

"Emergency measures introduced after 7 October 2023 exposed Palestinian detainees to torture, potentially unlawful deaths, incommunicado detention, and degrading conditions," said Alice Jill Edwards, the UN special rapporteur on torture.

Quoted in a UN statement seen by AFP, she argued the "number and cruelty of allegations" point to a "gross disregard by Israel of its duty to treat all detainees humanely".

Edwards said she had gathered information on 52 cases involving various forms of torture or ill-treatment, as well as 33 cases of sexual torture and other forms of sexual abuse.

Reported abuses include "severe beatings, stress positions, excessive restraints, electrocution, sleep deprivation, malnutrition and starvation" among many others.

She also expressed concern over reports of at least 94 deaths in custody since October 2023 that had not been investigated.

Somaliland, a breakaway region of Somalia, will set up an embassy in Jerusalem soon, its ambassador said on Tuesday, after Israel became the first country to formally recognise the self-declared republic  several months ago.

In turn, Israel is expected to set up an embassy in Somaliland's capital Hargeisa, Ambassador Mohamed Hagi said in a post on X.

Israel recognised Somaliland as an independent and sovereign state in December, a move Somalia rejected and termed a "deliberate attack" on its sovereignty.

Somaliland has enjoyed effective autonomy - and relative peace and stability - since 1991, when Somalia descended into civil war, but the breakaway region had until December failed to receive recognition from any other country.

The former British protectorate hopes that recognition by Israel will encourage other nations to follow suit, increasing its diplomatic heft and access to international markets.

Israel's Foreign Minister Gideon Saar said on Tuesday that the opening of the embassy in Jerusalem would be another significant step in strengthening relations with Somaliland. Once opened, the Somaliland embassy would be the eighth embassy in Jerusalem, he said.

The United Arab Emirates on Tuesday said drones that targeted its nuclear plant last week came from Iraq, from where Iranian-backed groups have launched several attacks since the Middle East war began.

On Sunday, an unclaimed drone struck an electrical generator near the Arab world's only nuclear power plant in Barakah in the emirate of Abu Dhabi, triggering a fire but causing no injuries or radiation leak. Two other drones had been intercepted.

Barakah is near the Saudi border and Qatar and the strike raised fears of consequences across the Gulf.

"As part of the ongoing investigation into the blatant attack on the Barakah Nuclear Power Plant on May 17, 2026, technical tracking and monitoring confirmed that the three drones... all originated from Iraqi territory," the Emirati defence ministry said.

Authorities intercepted six drones that also came from Iraq and "attempted to target civilian and vital areas" in the past 48 hours, the ministry added.

Iraqi authorities had already condemned the attack on Barakah before Abu Dhabi announced where the drones came from.

Iran has attacked the UAE and other Gulf nations since the US and Israel launched strikes on the country on 28 February, targeting US assets but also energy and civilian infrastructure.

Before the 8 April ceasefire came into place, Tehran-backed Iraqi groups intervened in support of Iran and struck US facilities in Iraq and the wider region, including Gulf countries.

NATO's top commander said Tuesday he was "thinking" about how the alliance could help in the Strait of Hormuz, but no formal planning had begun yet.

"Am I thinking about it? Absolutely. But there's no planning yet until the political decision is taken," US General Alexus Grynkewich, NATO's Supreme Allied Commander Europe, told journalists.

US President Donald Trump has blasted Washington's European allies in NATO for their response to his war on Iran -- which has seen the crucial waterway closed.

European countries spearheaded by Britain and France have been scrambling to put together a possible plan for how they could help keep the strait open if the war ends.

So far US-led alliance NATO has steered clear of seeking any direct involvement in the conflict -- despite pressure from Trump.

"Each nation is considering their response, with many, including Belgium, France, Germany, Italy, and the United Kingdom, sailing ships to the region," Grynkewich said.

"We all agree it's in our interest to ensure freedom of navigation in international waters."

The Israeli military has renewed forced displacement threats targeting residents across southern Lebanon, warning people in 12 towns and villages to leave their homes ahead of announced attacks.

In a post on X on Tuesday, Israeli army Arabic-language spokesman Avichay Adraee named the affected areas as Toura, Lower Nabatieh, Habboush, Al-Bazouriyeh, Tayr Debba, Kafr Huna, Ain Qana, Lubaya, Jibshit, Al-Shahabiyeh, Burj Al-Shamali and Houmin Al-Fawqa.

The warning comes as Israel continues carrying out strikes and military attacks across Lebanon despite the ceasefire agreement that came into effect last month.

Lebanese officials and residents have repeatedly accused Israel of violating the truce through air strikes, artillery shelling and drone attacks targeting multiple areas in the country’s south.

G7 finance ministers agreed on Tuesday on the need to tackle "trade imbalances" in a fragmented global economy, saying the current situation was unsustainable, but were light on concrete measures.

Finance ministers and central bank governors from G7 countries met in Paris for a second day of talks to discuss the economic fallout from the US-Israeli war on Iran and volatility on global bond markets.

They called for the immediate reopening of the Strait of Hormuz and for maintaining pressure on Russia over Ukraine, agreeing on a common language on issues on which the group of seven advanced economies have not always seen eye to eye.

British Airways (BA) has delayed resuming flights to Dubai, Doha and Tel Aviv to 1 August as the travel sector continues to face immense ramifications from the US-Israeli war on Iran.

"Due to the ongoing situation in the Middle East, we have made further changes to our flying schedule to provide greater clarity for our customers," a spokesperson for British Airways told Reuters. "We're keeping the situation under constant review and are directly in touch with affected customers to offer them a range of options."

Last month, BA said that it plans to reduce flights to the region when services resume and will permanently drop some destinations, including the Saudi Arabian city of Jeddah.

Iran reopened its stock exchange on Tuesday after the longest shutdown in its history, caused by the US-Israeli war, according to local media.

"After nearly 80 days ... the Tehran Stock Exchange reopened this morning," the economic daily Donya-e-Eqtesad reported.

Trading had been suspended since the start of the war on 28 February, when Israeli and US forces attacked Iran, triggering retaliatory missile and drone attacks by Tehran across the region.

The market remained closed even after a fragile ceasefire took effect on 8 April.

Unlike major global exchanges, Iran's stock market operates largely outside the international financial system due to decades of sanctions and restrictions on foreign investment.

The official IRNA news agency said trading in shares in more than 40 companies affected by war, including firms in the chemical and metal sectors, "will remain suspended for the time being".

According to the latest figures from the Lebanese Health Ministry,  Israeli attacks have killed at least 3,042 people across Lebanon since March 2.

Israeli attacks over the same period have wounded 9,301 people.

The US-Israel war on Iran, and the fear of its resumption, is reconfiguring who gets to travel, how they get there, and at what price.

To read more, click on the link below:

More information is rapidly coming in about the explosion in Damascus. 

According to what sources reported to The New Arab's correspondent in Damascus, Mohamed Karkas, an explosion targeted a vehicle belonging to the Syrian Ministry of Defence in the Bab Sharqi neighbourhood in the centre of the city, killing a member of the Ministry of Defence and wounding multiple people.

The sources said that the explosion occurred near the Armament Management Centre within the neighbourhood.

Moreover, the Media and Communications Department of the Syrian Ministry of Defence said that one of the Syrian Arab Army groups discovered an explosive device prepared for detonation near one of the Ministry's buildings in the Bab Sharqi area of ​​Damascus.

The ministry added that the specialised personnel dealt with the device immediately and began trying to dismantle it before a car bomb exploded in the same area, killing a soldier and wounding others with varying injuries.

For his part, the Director of the Directorate of Referral, Ambulance and Emergency in the Syrian Ministry of Health, Dr Najeeb Al-Naasan, said that ambulance teams responded to the bombing that occurred in Bab Sharqi, noting that the incident resulted in about 12 injuries and one death.

Al-Naasan added that the injured were transferred to nearby hospitals, while medical and ambulance teams continue to provide necessary health care and follow up on their health conditions.

These security incidents in Damascus reflect ongoing challenges faced by the Syrian security services, despite months of security campaigns and military tightening inside the capital, at a time when the authorities are still pursuing cells suspected of belonging to ISIS, remnants of the former regime, or other armed groups that are sporadically active in some Syrian regions.

Israeli forces have intercepted one of the remaining vessels part of the Global Sumud Flotilla, stopping it when it was around 150km from Gaza's shore, according to the Global Sumud Flotilla.

The group noted that 61 boats have been intercepted by Israeli forces, with nine continuing to sail towards Gaza.

The goal: to break an illegal decades-long blockade by Israel.

The Israeli occupation army launched a raid on the town of Maarakeh in southern Lebanon.

Earlier, Hezbollah-affiliated media reported that the Israeli occupation army abducted a number of citizens on the Kharayib road at the outskirts of Kafr Hamam and Kafr Shuba areas in southern Lebanon and took them to an unknown location.

An explosion is heard in Damascus, Syrian state media reports, while an AFP correspondent saw a car ablaze near the Old City.

The official SANA news agency says “an explosion was heard in Damascus, and its nature is being investigated.”

The AFP journalist heard a blast before seeing a car burning near a building affiliated with Syria's defence ministry, saying security forces had cordoned off the area.

A Syrian military source tells Reuters that an explosive device was planted inside a car and detonated near the front gate of an armament management centre in the Syrian capital.

A civil defence source then tells AFP that one person was killed in the explosion.

Qatar said on Tuesday that US-Iran negotiations, mediated by Pakistan, required more time to reach a deal, a day after President Donald Trump said he had postponed planned attacks to give the process a chance.

"We are supportive of the diplomatic effort by Pakistan that has shown seriousness in bringing parties together and finding a solution, and we do believe it needs more time," Qatari foreign ministry spokesman Majed al-Ansari said at a press conference.

"We want to protect the people of the region from being basically the main losers of any escalation in the region," al-Ansari added.

"If the enemy is foolish enough to fall into the Zionist trap again and launches new aggression against our beloved Iran, we will open new fronts against it, with new equipment and new methods," army spokesperson Mohammad Akraminia said, according to ISNA news agency.

As Javier Milei aligns Argentina with Trump & Israel’s Middle East conflicts, he is deepening divisions at home and isolating public opinion, writes Dr Luciano Zaccara.

Read more below:

According to an Iranian official speaking to Tasnim, the explosions heard in Qeshm Island were the result of unexploded munitions being neutralised. 

The Prime Minister and Minister of Foreign Affairs of Qatar, Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, received a telephone call from the Deputy Prime Minister and Minister of Foreign Affairs and Expatriates of Jordan, Ayman Safadi.

During the call, they reviewed cooperative relations between the two countries and ways to support and strengthen them, in addition to discussing developments in the region, particularly those related to a ceasefire between the United States of America and the Islamic Republic of Iran, and efforts aimed at reducing escalation in a way that contributes to enhancing security and stability in the region.

During the call, the Qatari Prime Minister and Minister of Foreign Affairs affirmed the necessity for all parties to respond to ongoing mediation efforts, which would open the door to addressing the roots of the crisis through peaceful means and dialogue, and lead to reaching a sustainable agreement that prevents renewed escalation.

Explosions were heard on Iran's Qeshm Island on Tuesday, the Iranian Mehr news agency said, adding that the cause was unknown and that no official entity has commented yet.

"Issuing arrest warrants against the prime minister, the defence minister and the finance minister is a declaration of war – and in the face of a declaration of war, we will respond in kind," Smotrich said, according to Israeli media.

He called the court "antisemitic", threatened to attack the Palestinian Authority, and vowed to expand settlements.

In 2024, the ICC issued arrest warrants for the Israeli prime minister, Benjamin Netanyahu, the country's former defence minister Yoav Gallant and for war crimes relating to the Gaza genocide.

Gaza's health ministry announced that two people were killed and three others injured in Israeli attacks across the territory over the past day, despite the supposed ceasefire.

The health ministry noted 880 people have been killed in Israeli attacks since the alleged ceasefire in October 2025.

At least 72,772 people, many of whom were women and children, have been killed by Israeli attacks across Gaza since October 2023.

Gaza's health ministry announced that two people were killed and three others injured in Israeli attacks across the territory over the past day, despite the supposed ceasefire.

The health ministry noted 880 people have been killed in Israeli attacks since the alleged ceasefire in October 2025.

At least 72,772 people, many of whom were women and children, have been killed by Israeli attacks across Gaza since October 2023.

Despite a ceasefire and ongoing negotiations, the Israeli military issued further evacuation warnings, this time directed at 12 villages and towns in southern Lebanon.

Residents of Toura, Nabatiyeh at-Tahta, Habboush, al-Bazouriyah, Tayr Debba, Kfar Houneh, Ain Qana, Libbaya, Jibshit, ash-Shehabiyah, Burj al-Shamali, and Houmine al-Faouqaare are instructed to evacuate at least a kilometre away.

Saudi Foreign Minister Prince Faisal bin Farhan bin Abdullah discussed recent developments in the region with his Kuwaiti counterpart, Sheikh Dr Ahmad Nasser Al-Mohammad Al-Sabah.

The Saudi Press Agency (SPA) said today, Tuesday, that Minister bin Farhan received a phone call from the Kuwaiti foreign minister during which they discussed coordination and consultation regarding recent developments in the region.

The loud buzzing of an Israeli drone over Beirut's skies began just before noon.

Israeli drones are sporadically heard over the Lebanese capital throughout the day, particularly since October 2023. 

Since Israel began repeatedly violating the fragile ceasefire that took effect on 17 April, a new phase of confrontation has taken hold in southern Lebanon, shaped less by large-scale offensives and more by a quiet but highly disruptive shift in battlefield tactics.

Read more below:

A hearing for Israeli Prime Minister Benjamin Netanyahu's testimony in his criminal trial regarding corruption will end several hours earlier than scheduled due to "security and diplomatic matters".

This is part of an ongoing series of cancelled or shortened sessions for Netanyahu's cross-examination by the prosecution.

The organisers of an aid flotilla seeking to break the illegal blockade on Gaza said on Tuesday that Israeli forces had intercepted 41 of their boats in the eastern Mediterranean, with 10 vessels still sailing toward the coastal enclave.

The closest vessel to Gaza, Sirius, was 145 nautical miles away, the group said.

Speaking in Ankara late on Monday, Turkish President Tayyip Erdogan condemned the intervention against the "voyagers of hope" in the flotilla and called on the international community to act against Israel's actions.

Ships from the Global Sumud Flotilla had set sail for a third time on Thursday from southern Turkey, after earlier attempts to deliver aid to Gaza were intercepted by Israel in international waters.

The group said there were 426 people taking part in the 54-vessel flotilla from 39 countries.

European shares ticked higher on Tuesday after investors welcomed news that the US had paused an attack against Iran following Tehran's latest peace proposal.

Oil prices fell as much as 2% even as they remained over $100 a barrel, while bonds steadied after a steep selloff in the past few sessions.

The pan-European STOXX 600 rose 0.2% to 611.22 points, as of 0702 GMT, but stayed below prewar levels.

European equities have lagged behind global peers, with the region's dependence on oil imports weighing on markets, while US and global markets have rebounded on artificial intelligence-led optimism.

The AI trade and the tech rally will face a test on Wednesday when the world's most valuable company, Nvidia, reports its quarterly results.

The Tehran Police Command announced the arrest of two people today on charges of espionage, after they were active in the west and north of the Iranian capital under the guise of journalistic work.

According to a statement issued by the police command, the two detainees exploited their media status to collect information classified as "secret" related to vital and sensitive military and intelligence centres inside the country, and sent it to media channels opposed to the regime.

The statement added that preliminary investigations revealed that the network relied on secure communication channels to communicate with an "operations room" outside the country, using satellite Internet via Starlink devices.

Qatari Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman Al Thani received a phone call from Turkish Foreign Minister Hakan Fidan, during which the cooperative relations between the two countries and ways to support and strengthen them were reviewed, in addition to discussing developments in the region, particularly the ceasefire between the United States of America and Iran, and efforts to enhance security and stability in the region.

Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani emphasised the need for all parties to respond to ongoing mediation efforts, opening the way to address the roots of the crisis through peaceful means and dialogue, and leading to the achievement of a sustainable agreement that prevents renewed fighting.

Iran's latest proposal to the United States calls for the lifting of sanctions on Tehran, the release of frozen Iranian funds, and an end to the maritime blockade on the country, Iran's Deputy Foreign Minister Kazem Gharibabadi said, according to the IRNA news agency.

The proposal also includes ending the war on all fronts, including in Lebanon, the exit of US forces from areas close to Iran and compensation to cover the destruction caused by the war, Gharibabadi added.

Israel's death penalty law targeting Palestinians became fully operational on Sunday evening and was extended to the occupied West Bank following an order signed by Israel's Central Command chief, Major General Avi Bluth.

Read more below:

Three people have been killed at a mosque complex in San Diego, USA, in a shooting that authorities are investigating as a hate crime.

San Diego Police Chief Scott Wahl said two suspected shooters in the attack on Monday at the Islamic Centre of San Diego (ICSD), which houses a mosque and a school, were found dead of apparent self-inflicted gunshot wounds.

The suspects were two males, believed to be aged 17 and 19, according to the police chief. All three victims were adults, and the children at the school were not physically harmed, according to authorities.

The official Israeli Broadcasting Authority acknowledged on Monday that Hezbollah's drones limit the Israeli army's ability to operate in southern Lebanon.

The authority said that "the Israeli army estimates that, in addition to the fighter casualties, the threat of explosive drones restricts the army's freedom of action in southern Lebanon by about 80 per cent."

It added that "many Israeli military operations are not carried out during daytime hours," for fear of the drones.

To confront the escalating danger of those drones, the authority said, "countermeasures are being distributed to a limited number of soldiers in each company, due to a shortage of equipment."

Israel started the day off typically with a massive artillery shelling targeted at the Dibin-Marjayoun area in southern Lebanon.