US and Iran Trade Air Attacks as Talks on Preliminary Deal Intensify

The United States and Iran exchanged air attacks on Thursday, with President Donald Trump threatening further strikes if Tehran does not immediately agree to a peace deal. Despite the military escalation, three Iranian sources and a European official said talks on a preliminary deal had intensified, with both sides exchanging messages on the details of a memorandum after reaching a political understanding. Key unresolved issues include a mechanism for releasing billions of dollars in frozen Iranian funds. One Iranian source described the war as a military dead end, noting that the Americans could not achieve their goals by attacking Iran, but acknowledged progress in negotiations. Trump has repeatedly stated that a deal is close, though U.S. officials have not confirmed the details of the ongoing talks.

Global Impact

Economically, the conflict threatens oil supply routes, potentially driving up global energy prices and inflation. Politically, the U.S. and Iran are in a high-stakes negotiation, with domestic pressures on both sides.