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Trump Touts Iran Progress While Hormuz Strike Reports Show Risk

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(Bloomberg) — US and Israeli jets struck a number of Iranian vessels in the Strait of Hormuz, local media reported, hours after President Donald Trump had suggested negotiations with Tehran over an interim deal were progressing.

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The US-Israeli attack took place south of Larak Island in the Strait of Hormuz, with several Iranian personnel killed, Iran’s state-run Nour News reported, without providing further details. Trump had earlier said negotiations with Iran over an agreement to extend their ceasefire and reopen the strait were “proceeding nicely.” 

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The renewed fighting in the Persian Gulf highlights the fragile nature of the existing ceasefire between the US and Iran, just as expectations had been mounting of a longer truce and the reopening of the Strait of Hormuz. The critical waterway has been all but closed since the US and Israel attacked the Islamic Republic in late February, triggering an energy shock and spurring a wave of global inflation.

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Trump, in a Truth Social post on Monday, had also urged Saudi Arabia, Qatar and other countries to join the Abraham Accords and recognize Israel. In a later statement, the president said Iran’s enriched uranium would either be handed over to the US or, preferably, destroyed in Iran.

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Meanwhile, Prime Minister Benjamin Netanyahu said Israel would intensify attacks on Iran-backed Hezbollah after striking sites in southern Lebanon. The escalation followed Hezbollah drone attacks that landed in Israeli territory and a rocket fired toward Israel that the Israeli air force intercepted.

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Iran has demanded an end to hostilities against Hezbollah in Lebanon as part of any peace agreement with the US. Axios reported that a draft of a potential deal between the US and Iran includes language ending the war between Israel and Hezbollah. 

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