President Trump reports unprecedented oil flow through the Strait of Hormuz after a new diplomatic agreement with Iran, claiming safer global conditions and lower oil prices, while the US also seeks to block Iran's nuclear ambitions.
The US administration expresses frustration with Israeli Prime Minister Netanyahu's ongoing military operations in Lebanon, which threaten to derail ceasefire negotiations with Iran. Despite a memorandum of understanding calling for a permanent cessation of hostilities, Israel continues its attacks, leading to postponed talks and strained US-Israel relations.
A US-Iran agreement aims to end hostilities and start 60-day negotiations on key issues, including Iran's nuclear program. However, significant disagreements on enrichment, missiles, and proxies remain unresolved, with observers calling it a 'deal-to-do-a-deal' that postpones critical decisions.
Donald Trump reportedly clashed with Israeli PM Benjamin Netanyahu over military actions in Lebanon, potentially jeopardizing US-Iran diplomacy and a ceasefire. Netanyahu downplayed tensions, calling them "tactical disagreements."
Israel's decision to resume strikes on Beirut's southern suburbs, a Hezbollah stronghold, has complicated indirect US-Iran negotiations. Iran links the Lebanon ceasefire to wider US talks, citing mistrust and conflicting US signals, while the US accuses Iran of using Hezbollah to gain leverage.
Texas Attorney General Ken Paxton secures the GOP nomination for a U.S. Senate seat amidst controversy. South Carolina lawmakers reject a redistricting plan backed by Donald Trump. Meanwhile, Trump's diplomatic stance on Iran experiences whiplash.
US Secretary of State Marco Rubio stated that Washington is exploring alternative options if diplomatic efforts with Iran fail to yield a deal. He indicated that military operations against Iran are not ruled out if negotiations do not achieve US goals.
Asia-Pacific markets opened higher Friday, with Japan's Nikkei 225 up 1.36% and South Korea's Kospi up 0.52%. Investors are assessing U.S.-Iran diplomatic efforts, while falling oil prices reflect hopes for a deal. Japan's core inflation eased to 1.4% in April.
The petrodollar system remains deeply entrenched with the US dollar holding nearly 57 per cent of global official reserves versus the yuan's under 2 per cent. However, the security bargain linking Gulf oil revenues, dollar assets and American military protection is weakening. Recent regional developments are converging to expose new strains on this decades-old arrangement that has tied the world's most important commodity to the dominant reserve currency.
