From 5h ago 19.11 EDT Oil prices fall to two-week lows Oil prices hit two-week lows on Monday on optimism that the US and Iran were moving closer towards a peace deal even though they remained at odds over key issues, including blockades on the strait of Hormuz that continue to restrict oil supply from the Middle East. Brent crude futures fell $4.71, or 4.55%, to $98.83 a barrel by 2234 GMT, while US West Texas Intermediate was at $92.03 a barrel, down $4.57, or 4.73%. Both contracts touched their lowest points since 7 May earlier in the session, Reuters is reporting. Share

30m ago 23.20 EDT Closing summary We’re wrapping up this live coverage now but you can read more in our latest full report as the US and Iran appear to inch closer to peace deal, and here’s a recap of the day’s major news. Thanks for joining us. Donald Trump said on Sunday he had 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 which had been raised a day earlier.

The US blockade on Iranian ships in the strait of Hormuz would “remain in full force” until an agreement was signed , the US president said on social media. “Both sides must take their time and get it right.”

Iran’s semi-official Tasnim news agency said Washington was still obstructing parts of a potential deal , including Tehran’s demand for the release of tens of billions of dollars in Iranian oil revenues frozen in foreign banks.

Trump had said on Saturday that Washington and Iran had “largely negotiated” a memorandum of understanding on a peace deal that would reopen the Hormuz strait, that final details were being discussed and “will be announced shortly”.

The following day Trump defended himself against criticism from fellow Republicans over the proposed deal, which party hawks called a disaster, and claimed his nuclear deal with Tehran would be “the exact opposite” of the one agreed by Barack Obama, which Trump pulled out of in 2018. “If I make a deal with Iran, it will be a good and proper one … I don’t make bad deals!” View image in fullscreen People walk on the beach with vessels in the strait of Hormuz visible near the Iranian beach of Bandar Abbas. Photograph: Majid-Asgaripour/Reuters A senior Trump administration official told reporters an agreement would not be signed on Sunday, saying the Iranian system did not move fast enough. But, speaking anonymously, he 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. There was no immediate confirmation from Iran. Iranian sources told Reuters that in future stages of talks “feasible formulas” could be found to resolve the uranium dispute.

Israeli strikes pounded south and east Lebanon on Sunday despite a ceasefire as Hezbollah’s chief expressed hope for an Iran-US agreement that ends the Iran war and includes Lebanon. Lebanon’s health ministry said two people including a paramedic from the Hezbollah-affiliated Islamic Health Committee were killed on Sunday in Israeli raids, raising the war’s overall toll since 2 March to 3,123 killed.

Oil prices fell to two-week lows and stocks lifted amid optimism of a deal to end the Iran war. Brent crude futures were down more than 4% to $98.83 a barrel and US West Texas Intermediate also down over 4% to $92.03 a barrel, while Nasdaq futures were 1.2% higher, S+P futures were up 0.7% and Japan’s Nikkei jumped 3%.

With news agencies Share Updated at 23.42 EDT

1h ago 22.34 EDT Continuing with financial news, the US dollar slipped at the start of Asian trading on Monday as hopes of a deal reopening the Hormuz strait pushed oil prices below $100 a barrel, even as the Trump administration played down the chances of reaching an agreement with Iran soon. Against the yen, the US dollar was down 0.2% at 158.87 yen, while the euro rose 0.3% to $1.1642 and the British pound gained 0.4% to $1.3485. Many global markets are closed for holidays on Monday, thinning liquidity across the region. Reuters also reports that the Australian dollar advanced 0.4% to $0.7160, while New Zealand’s added 0.5% to $0.5877. Oil markets tumbled, meanwhile, with Brent crude prices falling 5.1% to $98.29 a barrel and US West Texas Intermediate down 5% at $91.76 a barrel. Traders expressed cautious scepticism over whether a peace deal would stick. “Markets have become conditioned to be incredibly patient on a tangible breakthrough, but the base case of a deal remains firm, with the weekend news providing further conviction, even if the timing remains unclear,” said Chris Weston, head of research at Pepperstone Group Ltd in Melbourne. Share Updated at 22.34 EDT

2h ago 22.10 EDT Japan’s share index soars on Iran peace hopes In line with with predictions, Japan’s Nikkei share index has jumped amid hopes for a deal to end the Iran war and reopen the strait of Hormuz. It rose more than 3%, although Donald Trump has told his negotiators “not to rush into a deal” with Tehran. Around 0145 GMT the Nikkei 225 was reportedly up 3.2%. Share Updated at 23.03 EDT

2h ago 21.39 EDT Iran supreme leader holed up in undisclosed location – report US intelligence shows that Iran’s supreme leader is effectively holed up in an undisclosed location with little access to the outside world and is reached only by a labyrinth of couriers, CBS News is reporting, citing US officials. The Iranian officials authorised to work with the Trump administration have been having a difficult time communicating inside of their own government system – and it’s a central reason why the details of a potential deal with Iran and past agreements have been slow to emerge, the report says. When the US sends proposed details, the difficulty in reaching supreme leader Ayatollah Mojtaba Khamenei means there can be a long delay before the US receives a response, CBS quotes two of the officials with knowledge of the matter as saying. A White House spokesperson declined to comment on intelligence on Khamenei’s whereabouts or Iranian communication methods, the report says. View image in fullscreen An Iranian holds a picture of Iranian supreme leader Mojtaba Khamenei, with an inset image of former supreme leaders, in Tehran on Sunday. Photograph: Abedin Taherkenareh/EPA It quotes a senior Trump administration official as saying on Sunday that Khamenei had “agreed to the contours of the current draft agreement”. Khamenei – who was injured in the US-Israeli strikes that began the war in late February – “is taking extreme measures to avoid the strikes similar to the ones that killed his father”, former supreme leader Ayatollah Ali Khamenei, the report says. Mojtaba Khamenei has not been officially seen or heard in public since before the war started, it says. Share Updated at 22.04 EDT

3h ago 20.53 EDT In case you missed this earlier, Donald Trump has had to defend himself against criticism from fellow Republicans over the potential Iran deal after news of it dismayed party hawks. As they called it a disaster and questioned why the US president launched the conflict in the first place, Trump claimed on social media that his nuclear deal with Tehran would be “the exact opposite” of the one agreed by Barack Obama, which Trump pulled out of in 2018. The 2015 deal limited Iran’s nuclear enrichment in return for sanctions relief. Trump announced on Saturday US time that a peace deal with Iran was “largely negotiated” and that the “final aspects and details” of a memorandum of understanding were still being discussed and “will be announced shortly”, with the strait of Hormuz reopening as part of the deal. But as Patrick Wintour reports, Trump said the following day that he was not rushing into a deal, and that “both sides must take their time to get it right … There can be no mistakes!” The president also insisted “the US blockade of Iran’s ports will remain in full force and effect until an agreement is reached, certified, and signed”. “Nobody has seen” the deal “or knows what it is”, the US president later added. “It isn’t even fully negotiated yet. So don’t listen to the losers, who are critical about something they know nothing about.” Facing the mounting criticism from inside his own party, Trump insisted: “I don’t make bad deals!” Share Updated at 21.16 EDT

4h ago 20.12 EDT Australian members of a flotilla that tried to deliver aid to Gaza have been welcomed home in emotional airport scenes after being freed from detention in Israel. Eleven Australians were among 400 people detained by Israel last week in international waters west of Cyprus. The broader group of flotilla participants allege they suffered abuse at the hands of Israeli forces, such as broken limbs, sexual assaults, tasers to the face and being injected with unknown substances. Seven of the Australian contingent arrived in Sydney on Monday morning, while the rest were due to arrive in Melbourne and Brisbane, reports Australian Associated Press. Walking out into a Sydney airport hall, the flotilla participants returned triumphant with fists and peace signs held high. View image in fullscreen Australian members of the Global Sumud flotilla arrive at Sydney international airport on Monday. Photograph: Jeremy Piper/Reuters A large contingent of supporters – including family, friends and federal senators – greeted them on arrival with rapturous applause and chants of “free, free Palestine”. View image in fullscreen A flotilla member after arriving. Photograph: Jeremy Piper/Reuters The Israeli ambassador to Australia, Hillel Newman, has claimed the detained flotilla members were handled with “great sensitivity”. He rejected claims of violence and sexual abuse. Share Updated at 20.16 EDT

4h ago 19.49 EDT As well as oil prices falling, US stock futures rose on Monday at the prospect of a deal to end the Iran war, although uncertainty over when the strait of Hormuz would open kept enthusiasm in check. Nasdaq futures were 0.89% higher and S+P futures were up 0.6%. Nick Twidale, the chief market analyst at ATFX Global, expected the market to embrace more risk on Monday but not to surge higher until there was confirmation the Hormuz strait would reopen. He said: double quotation mark We will need to see an agreement out in place in the coming sessions as we know there are still some major sticking points.” Reuters also reports that Japan’s Nikkei was poised for a strong start to Monday’s session. The most important issues for financial markets are when the Hormuz strait would reopen, Commonwealth Bank of Australia strategists said in a note. Share Updated at 19.51 EDT

5h ago 19.11 EDT Oil prices fall to two-week lows Oil prices hit two-week lows on Monday on optimism that the US and Iran were moving closer towards a peace deal even though they remained at odds over key issues, including blockades on the strait of Hormuz that continue to restrict oil supply from the Middle East. Brent crude futures fell $4.71, or 4.55%, to $98.83 a barrel by 2234 GMT, while US West Texas Intermediate was at $92.03 a barrel, down $4.57, or 4.73%. Both contracts touched their lowest points since 7 May earlier in the session, Reuters is reporting. Share

5h ago 19.02 EDT Iran has indicated its reported understanding with the US to halt the regional war would include Lebanon, but Israeli prime minister Benjamin Netanyahu said on Sunday that Donald Trump had reaffirmed his support for Israel’s right “to defend itself against threats on all fronts, including in Lebanon”. Israel’s military chief, Lieut Gen Eyal Zamir, said that “we continue to strike Hezbollah across all dimensions ... the security of civilians and the safety of our forces remain paramount”, a statement cited by AFP said. The nominal ceasefire between Israel and Lebanon – brokered by the US – was recently extended by 45 days. Share Updated at 19.36 EDT

5h ago 18.49 EDT Israeli strikes pounded south and east Lebanon on Sunday despite a ceasefire as Hezbollah’s chief expressed hope for an agreement between Iran and the US to end the Middle East war that includes Lebanon. Lebanon’s health ministry said two people including a paramedic from the Hezbollah-affiliated Islamic Health Committee were killed on Sunday in Israeli raids. The ministry raised the overall toll in the war since 2 March to 3,123 killed, AFP is reporting. A day earlier 11 people including six women and a child were killed in a single strike in the south’s Sir al-Gharbiyeh, the ministry said on Sunday, decrying a “massacre”. Israel’s military has continued to hit what it says are Hezbollah targets in Lebanon despite a nominal ceasefire since 17 April. The Iran-backed Hezbollah, meanwhile, claimed more than 20 attacks on Israeli troops in southern Lebanon on Sunday. As reported earlier, Hezbollah chief Naim Qassem said he hoped the agreement between Iran and the US would be finalised and “accordingly that we too will be among those included in this agreement” on a full cessation of hostilities. Share Updated at 19.14 EDT

6h ago 17.53 EDT US-Iran deal: Still waiting on details, US accused of dragging its feet As we move into Monday morning in Tehran, the world is still awaiting further details about the evolving US-Iran deal. But the longer we wait, the more likely it seems there are still differences between the two countries. Here’s what we know so far: The US and Iran deal is not expected to be finalized today, according to multiple sources, with more still needing to be ironed out. US secretary of state Marco Rubio told the New York Times an agreement with Iran had garnered regional support but a nuclear deal couldn’t be achieved “in 72 hours on the back of a napkin”. His comments came after Donald Trump told his negotiators “not to rush into a deal” with Iran to end the three-month war. Trump confirmed on Sunday that talks are still ongoing. “It isn’t even fully negotiated yet. So don’t listen to the losers, who are critical about something they know nothing about,” he posted on Truth Social. “Unlike those before me who should have solved this problem many years ago, I don’t make bad deals!” The US and Iran agreed in principle to open the strait of Hormuz again. We are still waiting on confirmation whether the US government’s military blockade will be lifted. Trump and Benjamin Netanyahu discussed the deal with Iran over the phone on Saturday. The Israeli prime minister said on Sunday that any final deal with Iran must end the “nuclear threat entirely”. Similarly, Trump spoke on the phone with various Arab and Muslim leaders on Saturday. During the call, he encouraged the leaders to sign on to the Abraham Accords, according to Axios, and establish diplomatic relations with Israel. The Arab and Muslim leaders were surprised by the US president’s request and stayed silent on the call, prompting Trump to jokingly ask if the leaders were still there. Currently, Saudi Arabia, Pakistan and Qatar do not have diplomatic relations with Israel. Reports suggest that Israel is pressuring the US government to take some hardline stances while it continues to negotiate with Iran. Drop Site News reported that a senior Iranian official said Israel is attempting to undermine parts of the deal. “We hope that the US administration will make its decision independently of external influence and in favor of the broader collective interests of all parties involved,” the official reportedly said. Despite posturing by the US over the weekend, Iran’s Tasnim News Agency said the US government is not budging on some clauses of the agreement, including with the issue of releasing frozen Iranian assets. An Al Jazeera English reporter said today the ceasefire in Lebanon has also become a sticking point, with Israel pushing the US to include language in the deal that would allow for further Israeli military operations in Lebanon. Rubio scolded a BBC reporter during an event in India this Sunday. The reporter asked Rubio about a deadly strike on a school in Iran that killed 120 schoolgirls on the first day of the war on Iran, pressing the secretary of state whether it was “reckless”. Share Updated at 17.58 EDT