May 7, 2026
US President Donald Trump said he was hopeful about recent talks with Iran, telling reporters after “very good talks” over the previous 24 hours that ‘it’s very possible that we’ll make a deal.’ He repeated the optimism at a Republican tele-rally and warned on social media that if Tehran rejects US demands — including ending its nuclear program and reopening the Strait of Hormuz — US bombing would resume at ‘a much higher level and intensity’ than before.
Iran’s Foreign Ministry said a US ceasefire proposal is “under review” and that Tehran will communicate its response to mediator Pakistan once it has finalized its views. At the time of reporting, Iran had not issued a public reply to Mr. Trump’s remarks.
Key developments across the region and beyond:
– Hamas: Palestinian health officials and Hamas sources reported that Azzam Khalil al-Hayya, a son of senior Hamas figure Khalil al-Hayya, died from wounds sustained in an Israeli drone strike. Hamas said Azzam was the fourth of Khalil al-Hayya’s sons to be killed in recent years. A fragile ceasefire agreed in October 2025 has reduced large-scale fighting but remains unstable, and the disarmament of Hamas envisioned in the Trump-endorsed plan has not been achieved.
– Hezbollah and Lebanon: The Israeli military said a strike in Beirut’s southern suburbs killed the commander of Hezbollah’s ‘Radwan Force’ unit, whom Israeli officials accused of directing attacks against northern Israel; Hezbollah had not immediately confirmed the report. Since hostilities resumed in early March, Lebanon’s Health Ministry reports more than 2,700 dead. Israel says Hezbollah has launched hundreds of rockets and drones into Israeli territory during the same period.
– Iran’s leadership: State media quoted President Masoud Pezeshkian as saying he met with supreme leader Mojtaba Khamenei. Khamenei has not appeared publicly since the start of the conflict, and statements attributed to him have been released indirectly through state channels. Pezeshkian described the supreme leader as having a clear vision and a humble, sincere approach, but gave no additional details about the meeting or its timing.
– Maritime incidents and the Strait of Hormuz: The Panama-flagged, South Korean-managed cargo ship HMM Namu was damaged by an explosion and fire while transiting the Strait of Hormuz. Iran’s embassy in Seoul “firmly rejects and categorically denies” attacking the vessel. The strait remains effectively closed amid reciprocal accusations: the UAE accused Iran of firing on an oil tanker attempting to pass through, while US forces recently fired on an Iranian oil tanker traveling in the opposite direction. Iran’s Port and Maritime Organization said it would broadcast offers of maritime services — including provisions, fuel, medical supplies and authorized repairs — to commercial vessels in the strait for the next three days.
– US domestic and economic fallout: The State Department warned employees against using nonpublic government information to place bets on online prediction markets such as Polymarket and Kalshi, citing concerns raised by recent press reports about officials wagering on negotiation outcomes. Hundreds of millions of dollars have been placed on markets tied to the talks and the wider conflict, and several accounts profited after correctly predicting a US ceasefire announcement in April. Separately, a US soldier was charged last month with using classified information to place bets linked to a separate international operation.
– Energy markets: Major oil companies reported strong earnings amid market disruption. Shell posted first-quarter profits of $6.92 billion, nearly 25% higher year‑on‑year, and TotalEnergies also reported a sharp rise in earnings. The surge in energy prices has drawn criticism and prompted renewed calls in Europe for windfall taxes on oil and gas companies to help fund relief measures for consumers facing higher fuel and energy costs.
The situation remains fluid. The US and Iran are engaging through mediators while military actions, regional strikes and economic effects continue to unfold. Further statements from Tehran and subsequent developments in negotiations or hostilities are being awaited.