The 60-day deadline for the U.S. and Iran to reach a wider peace deal and to reopen the Strait of Hormuz expires Monday, with no deal in sight.
U.S. stocks edged further from their record heights on Monday after rising oil prices cranked up the pressure on inflation and financial markets.
The S&P 500 fell 0.5% but remains near its all-time high set Thursday. The Dow Jones Industrial Average dropped 272 points, or 0.5%, and the Nasdaq composite slipped 0.3%.
Wall Street's losses solidified in the afternoon when oil prices accelerated upward. The price for a barrel of Brent crude, the international standard, rose 2.7% to $90.87.
It's been careening back and forth because of uncertainty about what the war with Iran will do to the global flow of crude. Last month alone, Brent zigzagged between $72 and $102 as hopes rose and fell that the United States and Iran could reach a deal that would allow oil tankers to freely exit the Persian Gulf again.
Iranian foreign ministry spokesman Esmaeil Baqaei condemned Monday's attack on the Iraqi Kurdish prime minister's office, portraying the incident as a ploy to undermine bilateral relations.
Baqaei described the drone attack at the office of Masrour Barzani, the prime minister of Iraq's semi-autonomous northern Kurdish region, as "a highly suspicious development that requires vigilance and careful attention," according to a statement carried by state news agency IRNA.
"He also underscored the need for all sides to work to thwart the sinister plots of the enemies of Iran and Iraq aimed at harming the brotherly relations between the two nations," IRNA said.
Iran's foreign ministry said its top diplomat, Abbas Araghchi, also held a phone call with his Iraqi counterpart on Monday.
"Nothing justifies the reckless attack on PM Barzani's office. Kurdish friends should be vigilant against false-flag ploys to sow discord between neighbours," Araghchi said on X.
The regional counterterrorism service said the drones were launched from the border with Iran, and there were no casualties
Since the start of the Middle East war, the Kurdistan region, which hosts U.S. troops and foreign oil firms as well as rebels exiled from Iran, has been targeted with more than 1,000 attacks by Tehran and pro-Iran armed groups inside Iraq.
President Trump on Monday downplayed reports about conditions for sailors and Marines aboard the USS Abraham Lincoln, which has been at sea for nine months, calling them "fake news."
"The Lincoln has been out there for a period of time, a good period of time, but over the years, we've had it out there much longer," Mr. Trump told reporters in the Oval Office.
The president said he spoke to an admiral, whom he did not name, over the weekend and that the retired officer told him: "I've been on ships that are out there much longer than that, sir, and I know people on the Lincoln. They say it's beautifully maintained and beautifully taken care of."
A number of families in recent days voiced worries that mental health conditions on the ship are deteriorating, and there have been some complaints about sanitary conditions and food supplies during the lengthy deployment amid the U.S.-Iran war. A typical deployment is six months, but the service members aboard the USS Lincoln have been deployed for nine months and counting.
U.S. Central Command Adm. Brad Cooper visited the aircraft carrier over the weekend and said deployment at sea is " uniquely challenging and tough," though he did not confirm or deny any specific issues.
Jared Kushner told Fox News on Monday that as the 60-day memorandum of understanding between the United States and Iran expires, Iran doesn't appear to be willing to finish the deal and give up nuclear weapons.
"[President Trump] is willing to make a deal that could be great for the Iranian people … but right now they are not showing any interest in doing something that makes sense for us," Mr. Trump's son-in-law and adviser said in an interview with Fox News' Trey Yingst.
Kushner said Iran has to be willing to make a fair deal without trying to "hide certain cards and get certain concessions."
Despite the roadblocks, Kushner said the U.S. and Iran are "having very positive conversations."
"You can't make deals with each other if you don't understand each other. You have to exchange views," Kushner said. "There's not a lot of trust between America and Iran after all these years of not having these relations and dialogues."
President Trump in the Oval Office Monday said making the Strait of Hormuz a U.S. territory is "a great idea."
"We control it. We control it with the blockade," he told reporters. "I like the idea of declaring it a territory. We have total control over the strait. Now, they can be a nuisance, they can put a mine in the water … but the blockade has been very effective."
Mr. Trump also said the U.S. is moving barrels of oil out of the strait. But, the strait remains without normal tanker traffic and oil prices ticked higher Monday.
Speaking in the Oval Office Monday, President Trump said Iran wants to make a deal, but "they're not going to make the kind of deal that I feel is necessary."
"Look, we're in there for one reason: Iran cannot have a nuclear weapon," he said.
He didn't say anything more about where negotiations stood. Monday marked the end of a 60-day negotiating period, agreed to by the U.S. and Iran in a memorandum of understanding, for a wider peace deal.
Asked if he was out of patience with Oman by a reporter in the Oval Office Monday, President Trump said, "No, I don't think they behaved very well, but we'd handle them very easily, just like we do other things."
The exchange comes after a Fox News correspondent said Mr. Trump told him the U.S. would bomb Oman if the country "gets in the way" of U.S. efforts to reopen the Strait of Hormuz and end the war with Iran.
President Trump's Board of Peace, which includes his son-in-law Jared Kushner, said in a statement that discussions with Israeli Prime Minister Benjamin Netanyahu about Mr. Trump's peace plan for Gaza were "deep and constructive."
"It was agreed that there will be no IDF redeployment from Gaza until Hamas is fully disarmed and all of Gaza is demilitarized - every weapon, light and heavy, and every tunnel," a Board of Peace official said. "Israel retains its full right of self-defense: if Hamas resorts to terror, violence, or attempts to rearm, Israel will retain the right to act accordingly.
"The Board of Peace informed the Prime Minister that Hamas has committed to fully disarm and to cease immediately all military activity in Gaza, including rearmament and tunnel digging."
The parties agreed to set up two working groups: one on security and demilitarization of Gaza and the other on basic needs for the people of Gaza, the official said.
The U.S. military as of Monday has redirected 64 commercial vessels under its naval blockade on Iran, according to U.S. Central Command.
It has disabled another three vessels and boarded two, CENTCOM said on X.
The military provided the numbers alongside a photo of what is said shows a Navy MH-60 Sea Hawk hovering over the flight deck of USS Mason, as the ship enforced the blockade.
Two officials in northern Iraq were targeted in drone attacks that the regional counterterrorism service said were launched from the border with Iran.
One was fired at the office of Masrour Barzani, prime minister of Iraq's semi-autonomous northern Kurdish region. The other targeted the home of a top regional intelligence official, the counterterrorism service said.
There were no casualties and no immediate claim of responsibility.
Barzani on X called the attack "a dangerous escalation and a direct threat to the security and stability of the Kurdistan Region."
Tom Barrack, the U.S. ambassador to Turkey and special presidential envoy for Syria and Iraq, said the U.S. strongly condemns the attack "on our friend and valued Kurdish partner" Barzani.
"Such aggression against our trusted Kurdish allies is unacceptable and a direct threat to regional stability," he said, adding, "We will not condone or tolerate these hostilities."
Iran and Iranian-backed Iraqi militant groups have launched regular attacks on U.S. military and diplomatic facilities in Iraq and on bases of exiled Iranian Kurdish dissident groups since the start of the Iran war, but Monday's direct attack on regional government buildings was unusual.
Wall Street stocks were mostly lower early Monday to open a week that includes earnings from large retailers and Federal Reserve meeting minutes.
Oil prices ticked higher as markets monitored back-and-forth between Iran and the United States over the Strait of Hormuz, which remains without normal tanker traffic.
"It's going to be a bit of a quiet week with very few inputs," B. Riley Wealth Management's Art Hogan said of the tempo in mid-August, a popular time for vacations.
About 15 minutes into trading, the Dow Jones Industrial Average was down 0.3% at 53,585.28.
The broad-based S&P 500 slipped 0.1% to 7,774.62, while the tech-rich Nasdaq Composite Index was flat at 26,724.05.
Maritime traffic through the Strait of Hormuz fell last week, according to two maritime monitors, with no end in sight to the grinding conflict between Iran and the United States.
Crossings through the key waterway fell 19.5%, according to Marine Traffic and Kpler, declining from a high of 19 on Aug. 11 to just three on Aug. 16.
Of the total 95 crossings, 51 vessels used the route established by Iran, while 44 used other routes, according to Marine Traffic.
Traffic through the Bab el-Mandeb, the gateway to the Red Sea, where Iranian-backed Houthi forces have attacked Saudi ships, increased slightly to 254, up from 238.
"Yet security conditions remain volatile," said Kpler. "Two attacks on 11 August resulted in six seafarer fatalities and 10 injuries, underscoring the gap between resilient traffic volumes and persistent regional risk."
The Pentagon announced a $22.9 billion contract with weapons manufacturer Raytheon on Monday for Tomahawk missiles amid reports of a shortfall due to the war with Iran.
Acting U.S. Navy Secretary Hung Cao said the contract will "accelerate Tomahawk missile delivery to our warfighters at unprecedented speed."
"Guaranteeing our naval and joint forces have the lethal firepower they need to deter aggression and protect the homeland is paramount," Cao said in a statement. "The Department is utilizing every available tool to meet the demands of our current operations."
An analysis by the Center for Strategic and International Studies (CSIS) think tank released last month found that U.S. stocks of Patriot and THAAD air defense missiles have been slashed by the conflict with Iran.
Before it began in late February, the United States had more than 2,300 Patriot and more than 450 THAAD interceptors - figures that CSIS estimated have been roughly halved or more in the subsequent months of war.
The Washington Post reported this month that President Trump had demanded answers from Pentagon chief Pete Hegseth about munitions shortages at a recent cabinet meeting. Mr. Trump and Hegseth both later denied that the U.S. was faced with dwindling missile stocks.
Tomahawk missiles are mainly launched from submarines and warships and can travel more than 1,000 miles.
Yemen's Iranian-backed Houthis claimed Monday to have targeted a Saudi military vessel and four accompanying military vessels off the coast of Mokha, Saudi Arabia, in the Red Sea.
Houthi forces "managed to target a military landing ship belonging to the Saudi enemy, along with four accompanying military boats in the Red Sea off the coast of Mokha, using a number of ballistic missiles," Houthi military spokesperson Yehya Saree said in a post on X.
"The strike was accurate and direct, resulting in the complete burning of the ship, the sinking of a number of the boats, and the burning of the remainder," he added.
The Houthis said several weeks ago that they would enforce a maritime blockade of Saudi Arabia's Red Sea ports. The two sides have been at war since 2015, when Saudi Arabia intervened in Yemen's civil war on the side of the Western-backed government, against the Houthis.
A ceasefire had been holding until last month, when the Houthis opened a new front in the regional war in support of their benefactor, Iran. Saudi forces last month joined with U.S. forces in airstrikes on Iranian-backed militias in Iraq.
Iranian First Vice President Mohammad Reza Aref said Monday that President Masoud Pezeshkian had decided the country's censorship of the internet should be brought to an end, although he said the process would take time due to the involvement of myriad legal bodies and councils.
Aref was quoted by the semi-official Tasnim News agency as saying the government considered improving the quality of Iranians' internet connectivity a priority, but he warned that Iran's enemies were seeking to use economic pressure to undermine social resilience.
He called on Iranian media to take a more assertive role in what he called a hybrid war, saying: "The media must shift from a defensive position to an offensive one; because in media work, the first narrator is the winner."
Islamic Revolutionary Guard Corps spokesman Brig. Gen. Hossein Mohbehi on Monday denied President Trump's claim that Washington was engaged in backchannel discussions with Iran's IRGC over the war.
"There are no talks taking place between IRGC officials and the Americans, and this lie by Trump is merely fantasies caused by the delusions and nightmares he has suffered as a result of defeat and desperation in the war," Mohbehi was quoted as saying by Iran's semi-official Tasnim News agency.
He said the IRGC "speaks its word on the battlefield," while "diplomatic matters fall within the remit of other parts of the Islamic Republic."
"According to the information we have and based on the statements of the respected officials of the Foreign Ministry, even in this area, no talks are currently taking place with the Americans because of their broken promises and the dark experience of repeated and continual U.S. breaches of commitments," insisted Mohbehi.
A senior figure in Iran's powerful Islamic Revolutionary Guard Corps warned Monday that the country's armed forces would adopt a more "offensive form" of defense amid the ongoing war with the U.S.
Brig. Gen. Yadollah Javani, the political deputy of the IRGC, told Iran's Fars News agency that the armed forces would adopt a "transformative" approach under its recently refreshed leadership, including a potential shift toward more offensive operations.
Javani said Iran had never initiated a war and that its actions to date had been defensive, but, "from now on, every action we take, although it has a defensive nature, must take on an offensive form."
Javani said a number of appointments and directives issued by Supreme Leader Mojtaba Khamenei last week reflected a broader effort to "reorganize, modernize and make more effective" Iran's defense doctrine in light of recent developments and the experience of the latest war.
He said Iran's adversaries should take the new directives seriously, "learn from these decrees and their messages that our armed forces will adopt transformative approaches."
"Perhaps they should expect strategic surprises," he added.
President Trump told Fox News' Trey Yingst on Monday that he has "no time schedule" to end the war with Iran, but that the Islamic Republic should "put up the white flag of surrender," according to Yingst.
"I'm not in a hurry," the Fox journalist quoted the president as saying.
Mr. Trump repeated his assertion to Yingst that "the midterms have nothing to do with my thinking" on resolving the war, which the U.S. and Israel launched jointly with a first wave of strikes on Iran on February 28.
Mr. Trump told Fox there was a direct backchannel between U.S. officials and members of Iran's Islamic Revolutionary Guard Corps, but he didn't elaborate on any ongoing talks, saying only that the Iranians are "good poker players, but they're dying."
President Trump told Fox News on Monday that the U.S. would bomb Oman if the country "gets in the way" of U.S. efforts to reopen the Strait of Hormuz and end the war with Iran, according to the network's Trey Yingst.
"If Oman gets in the way, we'll bomb the s*** out of them," Trump said, according to Yingst's recounting of his conversation with the president.
Earlier, Iranian foreign ministry spokesperson Esmaeil Baghaei told reporters Tehran had struck an agreement with Oman regarding shipping routes through the Strait of Hormuz, but did not elaborate.
Iran and Oman have held talks for weeks aimed at creating a mechanism to manage the strategic waterway in the future, with both having suggested at times that fees may be imposed for ships to use the strait. No concrete plans have been formally announced.
Despite Iran's threats and attacks on ships keeping traffic through the strait at a virtual standstill, Mr. Trump has asserted repeatedly that the U.S. is in control of the waterway, and that it may "keep it."
President Trump's son-in-law and envoy Jared Kushner met Monday with Israeli Prime Minister Benjamin Netanyahu after holding talks with Hamas leaders the previous day.
The meeting came two weeks after Mr. Trump said Hamas had agreed to disarm in accordance with a U.S.-backed Gaza peace deal. Netanyahu rejected the peace proposal, insisting that Hamas must be "genuinely disarmed."
Kushner's meeting with Hamas leaders took place in Egypt, with the goal of translating the plan negotiated by Mr. Trump's Board of Peace into concrete steps, a source told CBS News.
The meeting in Egypt also included discussion of the transfer of all governing responsibilities to the National Committee for the Administration of Gaza, ensuring Hamas has no future governing role in Gaza, facilitating Israeli withdrawals and deploying an international stabilizing force in the region, among other things, the source told CBS News.
Iran's foreign ministry said Monday that Tehran had reached an agreement with Oman on routes for ships to transit the Strait of Hormuz in the future.
Ministry spokesman Esmaeil Baghaei told reporters in Tehran "an understanding has been reached regarding the map of the transit route."
Baghaei did not elaborate on the route or whether any fees would be imposed on ships using it, but both Iran and Oman have previously suggested commercial vessels should enter the Strait of Hormuz using a route close to Iran's coast, and exit it using another near Omani waters.
Baghaei said both sides were working to finalize details before issuing a joint statement on the matter.
Iran's foreign ministry said Monday that it would consider three missing pilots to be prisoners in Qatar, despite denials by Qatari officials, until Doha offers clarity on the fate of the missing personnel.
Tehran has said the Iranians went missing while carrying out an operation against the United States' Al Udeid Air Base in Qatar on March 2, shortly after the outbreak of the war.
On Saturday, Iranian authorities alleged for the first time that the pilots had been captured in Qatar, after previously saying one pilot had been killed and three others were missing following their sortie.
"It is imperative to obtain clarification on their situation," foreign ministry spokesman Esmaeil Baghaei said during a weekly news briefing.
"Until the pilots' situation is clarified, we consider them prisoners and will spare no effort to shed light on their fate," he said.
Iran's foreign ministry has downplayed the importance of the 60-day period of negotiations agreed to in the memorandum of understanding with the U.S., which is due to expire Monday.
During his weekly news conference, ministry spokesman Esmaeil Baghaei said Iran would not alter its policies due to external pressure or deadlines, adding that the period designated for negotiations was not being implemented due to ongoing U.S. strikes against the country.
"What was included in the memorandum [...] is not being implemented," he said.
"We did not commence negotiations because the United States began violating the memorandum shortly after its June 18 signing," Baghaei said. "Therefore, the 60-day issue essentially has no relevance."
Iran's army chief announced on Sunday a reward equivalent to around $30,000 for the capture or killing of U.S. military personnel.
Speaking at a ceremony in Tehran on Sunday, Major General Amir Hatami said any Iranian who captured or killed a U.S. military service member would receive the reward of around 5 billion Iranian tomans. For any Iranian woman who captures or kills an American service member, Hatami said the reward would be doubled.
Hatami also issued fresh warnings about Iran's determination to control the Strait of Hormuz, calling it a "sacred" geopolitical asset for the Islamic republic. He said Tehran would use its full capabilities to protect the waterway and described control of the strait as an important lever in bringing the war to an end.
Transit in the Strait of Hormuz slowed this weekend, according to data by tracking firm Kpler reported by Reuters.
Only five commodity vessels transited the Strait of Hormuz on Saturday and none on Sunday, according to Kpler, compared to 31 the prior weekend.
At least one ship entered using the Iranian route, and a small tanker laden with Iranian fuel oil exited, data showed.
Some ships may pass with their transponders off, meaning they may not be detectable, but transits are still a long way from the 130 ships that traversed the strait every day before the war started.
Monday marks 60 days since the U.S. and Iran signed a Memorandum of Understanding that called for negotiations to reach a wider deal to end the war between the two countries and reopen the Strait of Hormuz.
However, that 60-day period expires Monday amid a stalemate between the two countries and a deal seemingly nowhere in sight. Over the past two months, talks between the two sides broke down, despite President Trump repeatedly saying a deal was imminent, leading to multiple flare-ups and escalations in the fighting and a constant exchange of threats.
On July 8, Mr. Trump declared that the memorandum of understanding was "over."
Jared Kushner, President Trump's son-in-law and negotiator on Middle East affairs, met with Hamas leaders in Egypt on Sunday to discuss the latest U.S.-backed peace deal that seeks the group's disarmament and a road map for the transfer of power to a new government, according to a source with knowledge of the meeting.
The meeting was aimed at translating the plan negotiated by Mr. Trump's international Board of Peace into concrete, verifiable steps, the source told CBS News, including maintaining the ceasefire between Israel and Gaza, beginning to transfer all governing responsibilities to the National Committee for the Administration of Gaza, ensuring Hamas has no future governing role in Gaza, facilitating Israeli withdrawals and deploying an international stabilizing force to the region, among other things.
The rare meeting in Egypt with Hamas' Khalil al-Hayya was also confirmed to the Associated Press by a regional official and a Hamas official, both speaking on condition of anonymity because they were not authorized to talk to reporters.
Adm. Brad Cooper, the head of U.S. Central Command, praised the crew of the USS Abraham Lincoln after he visited the aircraft carrier on Saturday.
In a statement shared on social media, Cooper said his time aboard the Lincoln was "awe-inspiring."
"I wish every American could see the crew in action," he said. "You would beam with absolute pride when witnessing their camaraderie, teamwork and resilience."
The Lincoln, which has about 5,000 service members, arrived in the Middle East in January and has been supporting the U.S. war against Iran. It deployed in November 2025 to the Pacific before it moved to the Middle East. It has spent a record-setting uninterrupted time at sea of more than 240 days. U.S. military vessels are normally deployed for about six months.
In the last few weeks, reports have emerged of mental health concerns among the crew and supply issues on board.
Cooper acknowledged the concerns in his statement, but said the Lincoln has among the lowest numbers of cases related to mental health of all the U.S. Navy's 11 active aircraft carriers.
"This doesn't mean that all is perfect," he said. "Find any of the nearly 4 million Navy veterans in America today and they will likely tell you that service at sea for long periods of time isn't for everyone. It is uniquely challenging and tough, and every single one of us, including me, reacts to stressors in different ways."
Cooper applauded the actions of Lincoln's leadership for "stepping up and making mental health and crew resilience a leadership priority."
The USS George Washington aircraft carrier is headed to the Middle East to relieve the Lincoln.
Asked Friday if he thought the Lincoln's deployment was too long, President Trump said it was "not nearly long enough."