US-Israel-Iran War Latest News: Trump Says Iran Deal ‘Possible Before China Visit’ Amid Strait of Hormuz Reopening

Middle East Conflict: US-Iran tensions show signs of easing as oil prices fall and diplomacy gains momentum. The reopening of the Strait of Hormuz and global market recovery highlight cautious optimism amid ongoing geopolitical uncertainty.

By: Amreen Ahmad
Last Updated: May 6, 2026 21:34:23 IST

US-Israel-Iran War Latest Update: Tensions in the Middle East continue to shape global markets, diplomacy and security strategies. The ongoing US-Israel-Iran conflict has disrupted trade routes and pushed oil prices above $110 per barrel at one stage however, recent diplomatic signals and military repositioning suggest a possible shift toward de-escalation, influencing both geopolitics and financial markets.

US-Israel-Iran War Latest Update

The conflict, now stretching over two months, has impacted global supply chains and energy flows. Nearly 20% of the world’s oil trade passes through the Strait of Hormuz, making the region critical and recent developments indicate cautious optimism, though uncertainty remains high. 

At least five people have been killed and 15 wounded after an Israeli attack on the town of al-Saksakieh in southern Lebanon, NNA reported as we reported earlier, Israel launched two intense air strikes on the al-Dawoudiya farm on the outskirts of al-Saksakieh. Two bodies have been pulled out by civil defence teams in Tyre, southern Lebanon, after Israeli strikes targeted a car near Al-Siraj High School.

US-Israel-Iran War Latest News: Trump Signals Potential Iran Deal Ahead of Upcoming China Trip

Donald Trump signaled that a diplomatic breakthrough with Iran could be within reach before his upcoming China visit while expressing confidence, he also warned that failure to secure an agreement could lead to renewed military escalation, highlighting the fragile nature of ongoing negotiations.

“I think it’s got a very good chance of ending, and if it doesn’t end, we have to go back to bombing the hell out of them,” Trump told White House correspondent Liz Landers.

US-Israel-Iran War Latest News: Oil Falls, Global Markets Surge on Hopes of Hormuz Reopening

Oil markets reacted quickly to signs of progress as Brent Crude dropped to around $103–$104 per barrel, while West Texas Intermediate hovered near $94–$96, marking declines of nearly 6–10%. Lower crude prices helped global equity markets rebound, reflecting improved investor sentiment.

US-Israel-Iran War Latest News: French Naval Force Advances Toward Red Sea Ahead of Potential UK-led Hormuz Mission

France has repositioned its aircraft carrier group closer to the Persian Gulf, preparing for a potential multinational mission. The deployment, involving over 50 countries in planning discussions, underscores the strategic importance of the Strait however, operations remain conditional on reduced threats and improved maritime safety.

“Going south of Suez is new for us,” Col Guillaume Vernet, spokesman for the French armed forces chief of staff, told The Associated Press. “Geographically, it’s closer to the Strait of Hormuz and will therefore enable us to react faster, once the conditions are met.”

The French mission operates separately from “Project Freedom,” the U.S.-led escort initiative launched on Sunday, which has already triggered Iranian responses and raised concerns over the April 8 ceasefire. Officials emphasized that the French-British effort is defensive in nature and aligned with international law.

US-Israel-Iran War Latest News: Netanyahu to Speak With Trump Admin Officials to ‘better understand’ Iran Negotiations

Benjamin Netanyahu is actively engaging with U.S. officials to assess the evolving negotiation framework. Israel remains cautious, particularly regarding possible sanctions relief for Iran and its implications for regional security. 

A source told CNN that Netanyahu is seeking updates on the state of the negotiations and aims to understand what is currently on the table. Israel is concerned, the source said, about potential last minute US concessions aimed at securing an agreement to end the war with Iran.

US-Israel-Iran War Latest News: Iran’s Parliament Speaker Says US Using Economic & Media Pressure to Fuel Divisions

Iranian leadership has accused the U.S. of applying economic and informational pressure to weaken internal unity despite sanctions and financial strain, Iranian officials maintain that domestic resilience remains strong, even as inflation and trade disruptions continue to affect the economy.

“The enemy is very hopeful about economic pressure, and it is clear that they have once again received false reports, and based on these reports, they have made wrong decisions,” said Ghalibaf in comments carried by Iran’s Fars news agency.

US-Israel-Iran War Latest News: Strait of Hormuz Reopening, Iran Confirms

Iran has confirmed the reopening of the Strait of Hormuz, a critical energy corridor that typically handles nearly 20% of global oil and LNG shipments. Shipping activity is expected to gradually resume, though traffic remains far below normal levels, previously averaging 120–135 vessels daily. The development has already impacted markets, with oil prices easing and supply concerns softening however, analysts caution that full recovery in flows and trade confidence may take weeks due to lingering security risks and high insurance costs.

“With the end of the aggressors’ threats and in the shadow of new procedures, the possibility of safe and sustainable passage through the strait will be provided,” it added, without specifying the new procedures.

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