Missiles target Iranian Kurdish opposition camps in Iraq’s Kurdistan – Reuters

The postponement came as Washington and Tehran hardened their positions over what any future negotiations should cover. The Trump administration wants talks with Iran focused on Tehran’s nuclear program rather than reopening the Strait of Hormuz, CNN reported, citing three sources familiar with the matter.

Iran, meanwhile, has signaled that it would consider nuclear negotiations only after the dispute over the strait is resolved, including the lifting of the US naval blockade.

Omani Foreign Minister Badr Albusaidi said the meeting planned for Monday in Salalah had been postponed “in the interests of consensus.” Iran’s IRGC-affiliated Fars News later reported that Tehran and Muscat had jointly agreed to the delay at the request of some regional countries.

Saudi Arabia had submitted amendments to the Omani-Iranian proposal over concerns that its wording could establish a new status quo in the strait unacceptable to Riyadh and other GCC states, Axios reported Sunday, citing a senior regional official.

The disagreements have emerged despite a flurry of regional diplomacy. Qatar’s prime minister and Oman’s foreign minister discussed efforts toward a solution guaranteeing freedom of maritime navigation, while the foreign ministers of Kuwait and Saudi Arabia also discussed ensuring the safety and freedom of shipping through Hormuz.

US blockade remains in force

The United States has continued to tighten its maritime pressure on Iran even as regional states search for a diplomatic arrangement.

US Central Command said Sunday that American forces had redirected 101 commercial vessels to ensure compliance with the blockade against Iran, up from 100 a day earlier.

US officials told CNN they believe American forces currently have the military upper hand in the strait, but questions remain over how long Washington can sustain the large-scale escort and naval operation.

Iranian Foreign Minister Abbas Araghchi has said an agreement with Oman on shipping arrangements would not itself reopen the strait, insisting that reopening depends on Washington meeting Tehran’s demands.

President Donald Trump, meanwhile, said Sunday that Iran “wants to make a deal so badly” and suggested the war could end before or shortly after the US midterm elections.

Vessel strike adds to Hormuz risks

Security risks around the strait also intensified on Sunday after an Iranian commercial container ship was struck by an unidentified projectile near Hengam Island, off Qeshm.

Iranian authorities said one crew member was killed and four others wounded. UK Maritime Trade Operations separately reported a vessel struck by an unknown projectile in the Strait of Hormuz, followed by a fire and crew evacuation, though it was not officially confirmed that the two reports concerned the same vessel.

Several explosions of unknown origin were also reported later Sunday in Sirik, in southern Hormozgan province, according to Iranian state media.

Saudi oil route under pressure

The pressure on Hormuz has become more acute for Saudi Arabia after drone attacks forced it to shut its East-West oil pipeline, a critical route carrying crude from the kingdom’s eastern oilfields to the Red Sea.

The pipeline had been transporting around 4 million barrels per day and allowed Riyadh to bypass the disruption in Hormuz. Reuters reported that stocks at the Red Sea port of Yanbu may be sufficient to sustain exports for only five to seven days if the pipeline remains shut, after which as much as 4% of global oil supply could be at risk.

Oil prices rose sharply as markets reopened, with Brent climbing above $108 a barrel after fresh attacks on Saudi Arabia and shipping in the Persian Gulf.

The Iraqi government has meanwhile stepped up security measures after Saudi Arabia said drones used in the pipeline attack were launched from Iraqi territory. Baghdad has begun reopening several border crossings with Iran after temporary closures and security reviews, with commercial traffic through Shalamcheh expected to resume Monday.

Houthis tighten pressure at Bab el-Mandeb

Saudi Arabia is also facing growing pressure on its western flank as Yemen’s Iran-aligned Houthis expand their position around Bab el-Mandeb, the narrow waterway linking the Red Sea to the Gulf of Aden.

The Houthi advance along Yemen’s Red Sea coast has raised fears that Saudi oil exports diverted away from Hormuz could face disruption at a second chokepoint. The US Navy has remained on high alert as the Houthis move closer to Bab el-Mandeb.

The Houthis said Sunday that four commanders of Saudi-backed Yemeni forces were killed and five others wounded in operations near Bab al-Mandab, according to the group-run Saba news agency.

The combination of pressure at Hormuz, attacks on Saudi infrastructure and Houthi gains near Bab el-Mandeb is narrowing the region’s alternatives at a time when diplomatic efforts remain divided over the terms of any maritime settlement.

With the Oman meeting now postponed and Washington and Tehran publicly at odds over the agenda for negotiations, there is no clear timetable for a diplomatic breakthrough even as the economic and military costs of the conflict continue to rise.

No foreign investment has been made so far in the current Iranian calendar year, which began on March 21, Tahmoures Lahouti, Deputy Industry Minister and head of Iran’s Small Industries and Industrial Parks Organization, told the Iranian Labor News Agency (ILNA).

“Given the sanctions and restrictions in place, foreign investment is not taking place,” Lahouti said.

Domestic investment in industrial development has also declined compared with last year, with exchange-rate volatility, inflation and weakening household purchasing power weighing on businesses, Lahouti added.

The Iranian year began about three weeks after Israel and the United States launched military operations against the Islamic Republic on February 28.

Lahouti did not provide figures for the decline in domestic investment or specify whether his assessment of foreign investment covered all sectors of the Iranian economy.

The rial has lost roughly 60% of its value against the US dollar since the beginning of the Iranian year, increasing the cost of imported equipment and other inputs for businesses. High inflation and uncertainty over future prices have further complicated long-term investment decisions.

Industrial employment declines

The deterioration in investment has coincided with significant job losses in industry.

About 630,000 industrial jobs were lost in the first quarter of the current Iranian year compared with the same period a year earlier, according to figures from Iran’s Statistical Center.

Separate labor-market data have also shown a sharp decline in the number of workers making social-security contributions.

The contraction adds to longer-running problems facing Iranian manufacturers, including sanctions, restrictions on international banking, inflation, currency depreciation and recurring energy shortages.

Foreign investment falls as capital outflows surge

Data from the United Nations Conference on Trade and Development (UNCTAD)shows that Iran was already struggling to attract foreign direct investment well before the war.

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  100 days after carnage: Iran economy reels from war, inflation, unemployment

In 2016 and 2017, following the implementation of the nuclear deal and the temporary easing of international restrictions, Iran attracted an average of about $4.2 billion in foreign direct investment (FDI) annually. After the United States withdrew from the nuclear deal and reimposed sanctions in 2018, the trend reversed, with annual FDI subsequently falling to around $1.5 billion.

At the same time, Central Bank data point to a sharp increase in capital outflows. Iran’s capital-account deficit widened from $6.77 billion in 2017 to $19.62 billion in 2025, nearly tripling over the period.

Overall, Iran attracted about $12.7 billion in foreign direct investment between 2018 and the end of 2025, while cumulative capital-account deficits approached $120 billion over the same period.

The gap illustrates that Iran’s problem extends beyond its difficulty attracting foreign capital. The country is also recording substantial capital outflows.

Iran falls further behind regional rivals

UNCTAD data for 2025 show the scale of the investment gap between Iran and some of its regional competitors.

Saudi Arabia attracted $32.6 billion in foreign direct investment last year, while the United Arab Emirates received about $48.2 billion.

The figures underscore Iran’s difficulty competing for foreign capital after years of sanctions and restrictions on international banking and trade.

Lahouti’s comments show that those constraints have now choked off an already limited flow of foreign investment. At the same time, depreciation of the rial, inflation, economic uncertainty and persistent capital outflows have made it more difficult for domestic investors to fill the gap.

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  Iran’s economy is a powder keg. Tehran is preparing for the spark

Foreign investment falling to zero this year is therefore part of a longer trend. Iran was struggling to attract foreign capital well before the latest war, while substantial capital outflows added to the pressure on investment at home.

HRANA said the women had been sentenced in separate political, security and protest-related cases on charges including “armed rebellion,” “enmity against God” and “corruption on earth,” offenses that can carry the death penalty under Iran’s Islamic penal code.

The cases were heard by branches of the Revolutionary Courts in Tehran, Isfahan, Rasht and Bandar Abbas, the group said.

The death sentences of Pakhshan Azizi and Arghavan Fallahi have been upheld by Iran’s Supreme Court, according to HRANA.

Azizi, who is being held in Tehran’s Evin Prison, was arrested in August 2023 and sentenced to death the following year on a charge of “armed rebellion through membership in groups opposed to the country,” HRANA said. Her requests for a retrial have since been rejected.

Fallahi, also held in Evin, was arrested in Tehran in February 2025 and later sentenced to death on a charge of “armed rebellion through membership in groups opposed to the government and armed action.” Her sentence was upheld by the Supreme Court in August, HRANA said.

A third woman, 68-year-old Zahra Shahbaz Tabari, was sentenced to death for a second time after the Supreme Court overturned an earlier death sentence and ordered a retrial. She was convicted of “armed rebellion through membership and activity in an opposition group” and is being held in Lakan Prison in the northern city of Rasht, according to HRANA.

Four other women — Maryam Hadavand, Mahnaz Chardouli, Leila Abolhasani and Taraneh Rahimi — were sentenced to death in cases connected to the nationwide protests that erupted in January, the rights group said.

Hadavand, 45 and a mother of two, was arrested in connection with events in Pakdasht, southeast of Tehran, on Jan. 8 and sentenced to death on charges including allegedly participating in the killing of two Basij members, deliberately setting fire to a religious site, damaging public property and assembly and collusion against national security, according to HRANA.

Chardouli, held in Qarchak Prison, was tried on charges including “attacking a mosque with a Molotov cocktail,” “participating in gatherings” and “assembly and collusion,” HRANA said.

A Revolutionary Court in Isfahan sentenced Abolhasani, a mother of two teenage daughters, to death on a charge of “enmity against God” after her arrest during protests in Shahin Shahr on Jan. 8. HRANA said a source close to her family had previously said the case stemmed from her presence at and filming of a fire at a shop, while judicial authorities accused her of involvement in the blaze.

Taraneh Rahimi was among 10 defendants sentenced to death and 11 years in prison in a case involving 16 people arrested over the January protests in Isfahan, known as the “Isfahan Shohada Square” case. The defendants were each sentenced to death and 11 years in prison on charges including “enmity against God through carrying a bladed weapon,” destruction of public property and assembly and collusion, the group said.

The eighth woman, 32-year-old Sevda, also known as Marzieh Ebrahimi Shamsabadi, was sentenced to death in Bandar Abbas on a charge of “corruption on earth” in a case HRANA said was linked to security developments during the war.

She also faced accusations including insulting Iran’s Supreme Leader, conducting media activity deemed contrary to national security, carrying out intelligence activity for hostile governments and photographing a military site and sending images to Persian-language media abroad.

HRANA said five of the eight cases were still at the initial trial or appeal stages.

The group also highlighted the case of Bita Hemmati, who had been sentenced to death in connection with the January protests before the Supreme Court overturned the sentence in June and ordered a retrial. HRANA said the outcome of the new proceedings remained unclear.

Separately, Varisheh Moradi, who had been sentenced to death on a charge of “baghi,” or armed rebellion, over alleged membership in an opposition group, had her sentence overturned by the Supreme Court in December 2025 and was granted a retrial. Her case remains unresolved.

Hossein Rasouli-Nasab was sentenced by the Mashhad Revolutionary Court on charges including “moharebeh,” or waging war against God, HRANA said.

The rights group said authorities had alleged that he committed moharebeh through participation in the destruction of public property and setting fire to religious centers. He was also accused of assembly and collusion against national security.

A source close to his family told HRANA that a mosque and a Quranic center caught fire during protests in Shandiz on January 8 and 9, and that Rasouli-Nasab’s case was opened in connection with those events.

Rasouli-Nasab was arrested during the January protests along with several other people, HRANA said. He was later transferred to Vakilabad Prison in Mashhad, where he remains held.

His case comes amid mounting concern from rights groups over the use of the death penalty against people detained in connection with the nationwide protests.

Human Rights Watch and the Abdorrahman Boroumand Center said in a joint report published on September 10 that Iranian authorities announced the executions of 29 people arrested in connection with the December 2025-January 2026 protests between March 18 and the end of August. Several were 18 or 19 years old, and five were executed in public.

The groups said that in 16 of those cases authorities did not allege that the defendants had killed anyone. Instead, some were executed over allegations including blocking streets, damaging public property and other acts that rights groups said did not meet the threshold for capital punishment under international law.

Human Rights Watch said the proceedings were often extremely fast, in some protest-related cases taking just over five weeks from arrest to execution, and said convictions were based in some cases on torture-tainted confessions and vague national security charges.

Amnesty International has separately accused Iranian authorities of “weaponizing the death penalty to repress dissent.”

Last week, Iran International reported that 18 prisoners held at Dastgerd prison in the central Iranian city of Isfahan were facing possible death sentences over unrest and a fire at the facility.

Last month, UN human rights chief Volker Türk said executions and death sentences in Iran had risen since March, with more than 100 other people facing similar charges and the death penalty.

The vessel was hit near Hengam Island, south of Qeshm Island, Qeshm Governor Hossein Amir-Teymouri told state-run IRNA. Ten crew members were aboard, he added.

One crew member, Jamshid Rajabi, was killed and four others injured. Iranian authorities have not identified the projectile or said who was responsible.

UK Maritime Trade Operations separately said a vessel transiting the Strait of Hormuz had been struck by an unknown projectile. A fire broke out and local authorities assisted with the crew’s evacuation, UKMTO added.

Neither UKMTO nor Iranian authorities have confirmed that the reports concerned the same vessel.

Iran rules out reopening Hormuz

The attack came a day before a regional meeting in Oman on a proposed maritime route through the Strait of Hormuz.

Iran will brief participating countries on an agreement with Oman and present maps of the proposed corridor, Foreign Minister Abbas Araghchi told Al-Araby Al-Jadeed.

“The agreement with the Sultanate of Oman does not in any way mean the reopening of the Strait of Hormuz,” Araghchi said.

Tehran would agree to reopen the waterway only if the United States returned to its commitments under the Islamabad memorandum, Araghchi added.

The strait has become a major front in the conflict, with the United States and Iran targeting vessels and disputing control over maritime traffic.

Meanwhile, hardline Iranian newspaper Kayhan called for a sharp expansion of retaliation against attacks on Iranian oil tankers, proposing that Tehran target multiple vessels for every Iranian tanker hit.

“The Islamic Republic of Iran must officially announce that, from now on, if one Iranian tanker is attacked, it will target all tankers in the Persian Gulf and the Gulf of Oman,” Kayhan wrote.

The newspaper, published under the supervision of supreme leader’s representative, argued that disabling large numbers of tankers could cause a global supply shortage and drive oil prices sharply higher.

Saudi-Houthi confrontation widens

Shipping risks have also increased on the other side of the Arabian Peninsula, where Yemen’s Iran-backed Houthis said they targeted Saudi military facilities with ballistic missiles and drones.

Houthi military spokesperson Yahya Saree said the group struck weapons depots and command facilities at a Saudi base in the southern Sharurah region in response to Saudi military operations in Yemen.

Saudi authorities did not immediately confirm the attack.

Iranian President Masoud Pezeshkian sought to distance Tehran from the confrontation.

“We are not at war with Saudi Arabia,” Pezeshkian said. “The Houthis have their own issues.”

His comments followed a drone strike on Saudi Arabia’s East-West oil pipeline, which Riyadh temporarily shut down. The route provides an alternative to shipping oil through the Strait of Hormuz.

Iraqi authorities said drones used in the pipeline strike were launched from Iraqi territory. Iraq subsequently seized 15 drone-launch platforms and pledged to prevent its territory from being used for attacks on neighboring countries, Al Arabiya reported.

The Houthi operations have raised the prospect of simultaneous disruption around the Strait of Hormuz and Bab el-Mandeb, two of the world's most important maritime energy routes.

Lawmakers raise nuclear withdrawal

Iranian politicians have meanwhile raised the possibility of withdrawing from the Nuclear Non-Proliferation Treaty following a resolution by the International Atomic Energy Agency’s Board of Governors.

Leaving the treaty and reconsidering Iran’s nuclear doctrine were “entirely attainable and readily achievable,” parliament presiding board spokesperson Abbas Goudarzi said.

Such measures would “put the United States and its lackeys in their place,” Goudarzi added.

However, two members of parliament’s National Security and Foreign Policy Committee said no legislation to withdraw from the NPT had been submitted to the panel.

Their accounts contradicted lawmaker Hosseinali Hajideligani, who earlier said several lawmakers had signed an expedited bill seeking withdrawal. Hajideligani has also called for tests needed to develop a nuclear weapon, arguing that Iran requires “atomic deterrence.”

A Foreign Ministry official separately said Iran had denied IAEA inspectors access to some nuclear sites following attacks by the United States and Israel.

Diplomacy continues at BRICS summit

Diplomatic contacts continued alongside the military and nuclear disputes, with Pezeshkian meeting Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed on the sidelines of the BRICS summit.

UAE presidential adviser Anwar Gargash said the meeting reflected Abu Dhabi’s approach of combining deterrence with diplomacy.

“Neither can function properly without the other,” Gargash said. “Deterrence strengthens the credibility of diplomacy, while diplomacy succeeds when it begins from a position of parity and capability.”

Gargash also praised Pezeshkian’s approach during the crisis, describing his positions as “balanced and rational.”

Araghchi separately released images of conversations with the foreign ministers of Russia, China, Egypt, Indonesia and Kazakhstan at the summit, without providing details of what was discussed.

Monday’s talks in Oman will take place with the Strait of Hormuz still closed and no responsibility established for Sunday’s deadly strike, leaving the proposed maritime corridor facing an immediate test of whether ships can use it safely.