Two arrested in UK over suspected Iran-linked foreign intelligence activity
British counter-terrorism police arrested two people in London on suspicion of assisting a foreign intelligence service in a case linked to Iran, police said on Thursday.
British counter-terrorism police arrested two people in London on suspicion of assisting a foreign intelligence service in a case linked to Iran, police said on Thursday.
A 42-year-old woman was arrested in north London and a 60-year-old man in northwest London on Wednesday under the National Security Act 2023, Counter Terrorism Policing London said.
Both were later released on bail under strict conditions until late October.
Police said the arrests followed searches at two homes in north and northwest London on June 24. A third property in northwest London was searched on Wednesday.
No imminent threat, police say
The investigation is not connected to attacks earlier this year targeting sites linked to Jewish and Iranian communities in London, police said.
"We do not believe there to be any imminent threat to the wider public in connection with this matter," Commander Helen Flanagan, head of Counter Terrorism Policing London, said.
She added that police had seen "a marked increase" in national security and state-threat work over the past year.
The Houthi advance, the prospect of a protracted US-Iran conflict and renewed international pressure over Tehran’s nuclear program emerged as the three most consequential developments of the day, pointing to a war expanding geographically, placing sustained pressure on US military resources and further threatening global energy supplies.
Three Yemeni government sources told Reuters that the Houthis had taken control of Mocha, a strategically located city on Yemen’s Red Sea coast near the Bab al-Mandab strait, one of the world’s most important shipping routes.
The capture marked a significant territorial advance by the group, which already controls Yemen’s capital, Sanaa, and some of the country’s populous north. It followed a new series of Houthi missile and drone attacks against Saudi Arabia, bringing another major US ally more directly into the conflict.
The Saudi-led coalition said the Houthis attacked Khamis Mushait, Abha and Jazan on Wednesday using ballistic missiles and drones. Saudi authorities issued an early warning in Khamis Mushait on Thursday morning before later announcing that the danger had passed.
Major General Turki al-Maliki, the coalition’s spokesperson, said the Houthis were continuing their attacks on Saudi “national assets and infrastructure.” He said the coalition would respond “responsibly” in defense of Saudi sovereignty, civilians and national resources.
The attacks have also tested the Mecca agreement signed last month by Saudi Arabia, Pakistan and Turkey. Pakistan’s Foreign Ministry described the accord on Thursday as a “defensive alliance” but said there were no plans to expand it.
“There is no such thing under discussion right now,” ministry spokesperson Sajjad Haider Khan said when asked how Islamabad would meet its obligations following the Houthi attacks. “When the time comes, we will act under the agreement.”
Tehran rejected US Secretary of State Marco Rubio’s assertion that Iran was behind the attacks. Iranian Foreign Ministry spokesperson Esmaeil Baghaei said the Houthis, formally known as Ansarallah, made their own decisions.
“Ansarallah is an independent Yemeni actor that makes its own decisions; it takes orders from no one and acts as nobody’s proxy,” Baghaei said.
Rubio had said that the Houthis were “in many ways agents and proxies of the Iranians” and that “behind some of this is clearly the Iranian hand.”
The developments in Yemen unfolded as top US officials privately considered the possibility that the war with Iran could last considerably longer than Trump has suggested publicly.
Vice President JD Vance, Rubio and other senior advisers have discussed with Trump the possibility that Tehran could continue resisting the US naval blockade, sanctions and military pressure through the end of his presidential term and potentially beyond January 2029, the Wall Street Journal reported, citing US officials.
Those assessments contrast sharply with Trump’s public insistence that Iran cannot withstand US pressure much longer. Trump said Wednesday that the war would end “immediately” after November’s congressional elections because Iran “can’t hold out any longer.”
At a Republican event in Dallas, Trump said Iran was “falling apart” and was no longer the dominant power it once was in the Middle East.
“They’ve been the bully of the Middle East for 51 years, and they’re not the bully anymore,” Trump said.
The Journal reported that a prolonged war would strain American military resources and extend disruption to global oil markets. Defense Secretary Pete Hegseth has already extended some US deployments in the Middle East into 2027, while some air-defense units are expected to remain in the region without a firm departure date, according to the report.
The military risks were underlined by reported damage to US aircraft at Muwaffaq Salti Air Base in Jordan following Iranian strikes overnight.
One A-10 Thunderbolt aircraft was left missing a wing and around eight F-15 fighter jets sustained light damage, CBS reported. The F-15s were subsequently returned to service. US forces defending the base launched more than 30 Patriot interceptor missiles during the Iranian attack, according to the report.
Iran said it attacked the base in Jordan as well as US vessels after the United States targeted Iranian oil tankers. US Central Command denied that any American warship had been struck, saying all attempted IRGC attacks against US naval vessels had failed.
The intensifying attacks on military installations, tankers and shipping routes have heightened fears of a prolonged disruption to energy markets.
Only seven vessels passed through the Strait of Hormuz on Wednesday, down from 12 the previous day and half the recent daily average of 14, Reuters reported, citing preliminary ship-tracking data. Some vessels may have crossed with their transponders turned off and would not have appeared in the figures.
Meanwhile, Goldman Sachs warned that escalating attacks in the Persian Gulf and Red Sea could drive Brent crude above $120 a barrel, CBS reported.
Trump said oil prices would decline once the United States defeated Iran.
“Oil will be going down as soon as we win the war with Iran, which is taking place right now,” he said.
The third major source of pressure on Tehran came from the International Atomic Energy Agency’s Board of Governors, which reported Iran to the UN Security Council over breaches of its nuclear non-proliferation obligations -the first such action against the country since 2006.
Iranian officials signaled that Tehran could respond by reducing its already limited cooperation with the UN nuclear watchdog.
Iran had the right to adopt “special measures” in response to the resolution and reserved the option of taking any action it deemed necessary, lawmaker Somayeh Rafiei said.
“It is natural for Iran to seek a review and reassessment of any further cooperation with the International Atomic Energy Agency or any other institution in the nuclear field,” said Rafiei, a member of parliament’s presiding board.
The confrontation over inspections comes amid renewed scrutiny of construction at Pickaxe Mountain, a deeply buried complex near Iran’s Natanz uranium-enrichment facility.
A satellite-imagery analysis by the Center for Strategic and International Studies found a sharp increase in activity at the site during 2026. The work included hardening tunnel entrances, paving internal roads, reinforcing access points and removing soil excavated from inside the mountain.
CSIS said the site appeared to have moved from large-scale excavation toward probable internal construction and further external reinforcement. Its analysts said open-source imagery could neither confirm nor disprove assessments that Iran had transferred centrifuges to the facility.
As diplomatic and military pressure grew, Iran sought to project resilience and signal that it was replenishing its defensive capabilities.
Reuters reported that Tehran routed an estimated $2 billion to $2.5 billion through a China-based trade mechanism during the past year, using proceeds from oil sales to pay for Chinese goods without transferring money through the international banking system.
The barter-like arrangement was used to acquire medicine, vehicles and communications equipment and was also connected to contracts worth millions of dollars for Chinese air-defense equipment, Reuters reported, citing two senior Iranian sources and three other people familiar with the system.
Iran’s Defense Ministry said on Thursday that the country’s military industry remained operational and was “stronger, smarter and more advanced than before.”
“You will soon see a glimpse of the tip of this iceberg,” the ministry said, without identifying the capabilities.
Iranian lawmakers and commanders issued similar warnings. Alireza Salimi, a member of parliament’s presiding board, said Iran possessed “many military surprises” known to the United States.
“If they continue their actions, we will make them regret it,” Salimi said.
The combination of expanding Houthi operations, preparations in Washington for a potentially multiyear conflict and mounting confrontation over Iran’s nuclear program suggested little immediate prospect of de-escalation.
With fighting spreading across the Red Sea, and the Persian Gulf, the risks increasingly extend beyond the direct confrontation between Washington and Tehran.
The published notice did not explain what the committee report contained or specify which parts of it the government opposed.
The cabinet took the decision at an August 23 meeting and it was formally communicated on September 8 by Iran's first vice president, IRNA said, citing the country's national database of laws and regulations.
The cabinet named the president's legal affairs office and the presidential office for science, technology and the knowledge-based economy as government representatives in the matter, IRNA said.
Bill has drawn criticism over broad reach
Parliament approved the general principles of legislation on combating foreign infiltration in August by 183 votes to four, but lawmakers have yet to complete consideration of its individual provisions.
A publicly circulated draft would impose new restrictions on contacts with foreign media, universities, embassies and international organizations and give the Intelligence Ministry and the Revolutionary Guards' Intelligence Organization roles in identifying prohibited foreign links.
Some provisions would restrict sharing information with foreign institutions and certain forms of academic, cultural and civil-society cooperation.
Critics in Iran have warned that the broad wording could expose journalists, academics, researchers and other citizens to prosecution.
The notice did not say whether the cabinet opposed the legislation as a whole or only aspects of the parliamentary committee's report.
Pezeshkian government had raised rights concerns
The decision follows earlier public opposition from President Masoud Pezeshkian's administration. Vice President for Legal Affairs Majid Ansari said in August that the proposal conflicted with constitutional protections for citizens' rights and individual freedoms and would sharply restrict academic contacts with institutions abroad.
"If every type of contact and communication faces restrictions and is criminalized by law, naturally they will prefer to migrate and carry out their scientific and research activities in a free environment," Ansari said, warning that the measure could drive more Iranian researchers, doctors and academics to leave the country.
The barter-like arrangement allowed Tehran to turn payments for Iranian oil into credits for Chinese imports without sending money directly through international banking channels, Reuters said, citing two senior Iranian sources and three other people familiar with the mechanism.
Iran used the system to buy medicines, vehicles and communications equipment, while it was also used in connection with contracts worth millions of dollars to supply Iran with air defense equipment over the past year, the sources said.
Billions routed outside normal banking channels
The mechanism has been operating since at least 2021 but has become more important as Washington tightened sanctions on Iran and companies doing business with Tehran, according to the report.
A buyer acting on behalf of Chinese state-owned oil trader Zhuhai Zhenrong had, at least until this year, deposited hundreds of millions of dollars a month with a China-based financial entity known as ChuXin, three people familiar with the arrangement told Reuters.
Those payments covered Iranian oil purchases. ChuXin then sent funds to Chinese exporters and companies involved in infrastructure projects in Iran, likely through other Chinese financial institutions, Reuters reported.
Around 70% of the Iranian oil proceeds handled through the arrangement went to infrastructure projects, while the rest entered accounts belonging to a special purpose vehicle, or SPV, used to pay suppliers of goods to Iran, the sources said.
The two Iranian sources confirmed the existence of the SPV, which Reuters said had not previously been reported.
Oil exchanged for access to Chinese goods
The SPV is managed by two entities, one acting on behalf of China's Ministry of Commerce and another linked to Iran's central bank, according to all five sources.
When Iran's central bank approves an importer to use funds held in the SPV, the Iran-linked entity informs its Chinese counterpart so payments can be made to suppliers, three of the sources said.
The structure gives Chinese manufacturers access to payment without dealing directly with Iran, according to the report. Reuters said there was no indication that the Chinese manufacturers supplying civilian goods had broken sanctions.
Reuters could find no record of a financial institution called ChuXin in Chinese corporate registries, and one source said it may exist only on a spreadsheet.
China says unaware of arrangement
China's foreign ministry told Reuters it was "not familiar with the situation you describe" when asked about the mechanism.
"China has consistently opposed unilateral sanctions that have no basis in international law and have not been authorized by the United Nations Security Council," the ministry said.
Iran's UN missions in New York and Geneva did not respond to Reuters requests for comment. Iran's central bank, China's commerce ministry, the National Iranian Oil Company and Zhuhai Zhenrong also did not respond to questions about their reported roles.
US pressure raises stakes
China has long been the main buyer of Iranian oil. More than 80% of Iran's shipped crude went to China in 2025, averaging around 1.4 million barrels per day, according to Kpler data cited by Reuters.
The arrangement has helped Tehran keep trade flowing despite years of sanctions, while giving China access to discounted Iranian crude.
Its importance has grown as the United States has increased economic pressure on Iran during the six-month-old war. Treasury Secretary Scott Bessent warned countries in August to cut business ties with Tehran or risk losing access to the dollar-based financial system.
Reuters said it could not determine how the US naval blockade on Iranian oil exports had affected the China trade mechanism. No Iranian crude cargoes had successfully passed through the Strait of Hormuz to China since the blockade was reinstated on July 14, according to the news agency.
A UN embargo on exports of most major conventional weapons to Iran was restored in September 2025 along with other sanctions.
Andrea Ghiselli, an international politics lecturer at the University of Exeter who studies China's relations with the Middle East, told Reuters that Beijing wanted to resist US pressure without putting major Chinese banks and companies at risk of exclusion from the international financial system.
"They want plausible deniability," he said.
CSIS examined six years of satellite imagery of Kuh-e Kolang Gaz La, commonly known as Pickaxe Mountain, an underground complex about two kilometers south of Natanz and roughly 225 kilometers south of Tehran.
The analysis found more road activity at the site in 2026 than at any previous point in its history and what researchers described as a “clear surge in construction activity.”
Recent work included raising and hardening tunnel entrances, paving internal roads, reinforcing access areas and removing excavated soil, according to images taken in July and August.
The researchers said the activity indicated that work had shifted from excavation toward probable construction inside the complex, while reinforcement of its exterior continued.
CSIS outlined three possible purposes for Pickaxe Mountain: a centrifuge assembly facility, a uranium enrichment plant or a protected location for other nuclear-related work, including uranium metal conversion.
The report said publicly available evidence was insufficient to determine what Iran intended to place inside the complex. It could neither confirm nor disprove reports that Tehran had moved centrifuges or centrifuge components there.
Continuous construction, the absence of increased internal security and the lack of vehicles or equipment unrelated to building work suggested the site was “not yet capable of enrichment work,” if enrichment was its intended purpose, the analysts said.
CSIS also said the complex would be extremely difficult to destroy using conventional weapons because it is buried deep inside a granite mountain.
Open-source estimates place parts of the facility between 80 and 100 meters underground, but the report cautioned that satellite imagery could not reliably establish its depth or internal design.
The GBU-57 Massive Ordnance Penetrator, the heaviest conventional bunker-busting bomb in the US arsenal, may not be able to reach and destroy the complex, according to the analysis.
A military operation could instead seek to collapse the tunnel entrances, potentially degrading or temporarily disabling the facility without destroying it.
CSIS concluded that military strikes might delay work at the facility but would not offer a sustainable solution to concerns about Iran’s nuclear program, arguing that any lasting resolution would require a verifiable diplomatic agreement.
The IAEA has requested information about Pickaxe Mountain and access to the site, but Iran has not responded, the report said.
Iran began building the facility in 2020 after an aboveground centrifuge assembly workshop at Natanz was damaged in suspected Israeli sabotage. Iranian nuclear chief Ali Akbar Salehi said at the time that a replacement centrifuge assembly facility would be built underground near Natanz.
US President Donald Trump said on September 4 that Washington may strike Pickaxe Mountain “very soon,” reiterating that Iran would not be allowed to have a nuclear weapon.
The Pentagon has made preparations this year to test classified capabilities against deeply buried targets, CNN reported on Wednesday, citing federal contracting records and people familiar with the effort.
Days before the war began on February 28, the Defense Threat Reduction Agency approved an emergency $1.2 million contract to repair a specialized underground testing facility at White Sands Missile Range in New Mexico. The work was intended to prepare the site for a live-fire test against rapidly emerging threats, according to the records.
Three sources told CNN that the planned test was connected to the Iran war and efforts to develop a way to strike Iran’s deepest underground facilities, potentially by simulating attacks on specific nuclear sites.
Satellite imagery reviewed by CNN showed excavation and vehicle activity at the White Sands site beginning in mid-February and continuing into March. CNN said it could not independently verify whether the test occurred or determine its purpose. The Pentagon and the contractor did not provide comment.
The US military also maintains operational plans for striking Pickaxe Mountain, and the facility was included in a target package considered earlier this summer, a source familiar with the matter told CNN. The plan involved some of the largest bombs in the US arsenal, though it remained unclear whether they could penetrate deeply enough to destroy the facility.
Another source told CNN that Defense Department officials recently held a “planning sprint” on options for attacking deeply buried sites. The US Air Force is separately developing a next-generation penetrator to replace its existing bunker-busting bomb, with initial prototype work commissioned in September 2025.
