360LiveNews Day Recap News: US and Iran clash over Hormuz terms as Gaza, Lebanon and Ukraine tensions persist
Talks between the United States and Iran intensified over the Strait of Hormuz, inspections and the shape of any final deal. Marco Rubio said Iran would not be allowed to charge tolls or fees on vessels using the waterway, while Iranian and US officials remained divided over the framework and Donald Trump threatened to halt negotiations. Rafael Grossi, head of the International Atomic Energy Agency, said inspections at Iranian nuclear sites would resume under the preliminary agreement, even as the dispute over access and enforcement continued.
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The diplomatic push was accompanied by wider regional manoeuvring. Rubio was touring Gulf allies to reassure them that the emerging US Iran memorandum would take their security and economic concerns into account. Iran's president, Masoud Pezeshkian, arrived in Islamabad for a state visit as mediation advanced, and Tehran also invited Indian Prime Minister Narendra Modi to attend the funeral ceremonies for Supreme Leader Ayatollah Ali Khamenei.
Shipping through the Strait of Hormuz is still struggling to normalise after the ceasefire that ended the Iran Israel US war. A backlog of tankers has built up because barnacles are slowing the reopening of traffic, adding a fresh logistical problem to a route that remains central to global energy supplies.
Elsewhere in the Middle East, violence continued despite ceasefire diplomacy. An Israeli drone strike in southern Lebanon killed at least two people while Washington hosted talks between Israeli and Lebanese officials, and Israel said it would not withdraw from south Lebanon even if the United States demanded it. In Gaza, a 12 year old child was killed in al Mawasi, west of Khan Younis, in another Israeli drone strike, underlining how attacks have continued despite ceasefire efforts.
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Political friction also surfaced around Israel's leadership. A new book reportedly says Donald Trump lashed out at Benjamin Netanyahu during a heated phone call in September 2025 over Gaza ceasefire talks, highlighting the strain between the two allies as negotiations drag on.
In Europe and the wider security debate, former NATO secretary general Anders Fogh Rasmussen called for a Europe wide defence coalition including Ukraine, arguing that European states should prepare to defend the continent if the United States steps back. Ukraine's president Volodymyr Zelenskyy will skip a recovery conference in Poland, with tensions between Kyiv and Warsaw still overshadowing the postwar reconstruction agenda.
On the war front, Ukraine said drone attacks on occupied Crimea triggered power cuts in Sevastopol after energy facilities were hit, and a reported Ukrainian strike on a Moscow refinery damaged the site and prompted Russia to move a Pantsir air defence system closer. In the wider security picture, North Korea commissioned a new warship as Kim Jong Un vowed to build a nuclear navy and larger destroyers.
Several domestic and humanitarian stories also broke across Asia, Africa and Europe. Pakistan's anti terrorism court sentenced activist Mahrang Baloch to life in prison over a murder and terrorism case linked to protests. France confirmed its first Ebola case on national territory in a doctor returning from the Democratic Republic of Congo, with contact tracing under way. In India, flash floods and landslides in Arunachal Pradesh's Keyi Panyor district left the area almost cut off and five people missing.
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Australia's domestic intelligence chief said an Australian citizen working as a senior intelligence officer for Iran orchestrated a firebombing in Bondi, in a stark annual threat assessment. In Britain, the grid operator issued a rare summer electricity margin warning as a heatwave intensified, while in France about 67,000 homes in Brittany lost power as temperatures peaked and the country faced a record breaking heatwave.
In entertainment, EastEnders confirmed that Bea Pollard's scheme to turn Honey and Billy Mitchell against each other is unraveling, with a younger family member helping expose the plan. The soap plot was one of the few lighter notes in a day dominated by diplomacy, conflict and security warnings.
Financial glimpse
Europe closed lower, with the Euro Stoxx 50, DAX, CAC 40 and FTSE 100 all ending in the red as metals, oil and crypto slid and dollar strength weighed on equities and FX.
Wall Street opened lower, with the S and P 500, Nasdaq and Dow all down, although the Russell 2000 and SOXX rose. Gold, silver and crude oil were weaker, while some small caps and chip stocks outperformed.
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