Iran-US war latest: Trump threatens to escalate bombing if Tehran doesn’t agree to peace deal

Oil prices appear to be reacting positively to President Donald Trump’s overnight statements and reports that a resolution between Iran and the US could be in sight.

Crude Oil fell to $89.76 on Wednesday, down 12.24 per cent from the previous day.

However, it remains 54.57 per cent higher than a year ago according to trading on a contract for difference (CFD).

One of the world’s busiest airports saw its passenger numbers plunge by more than half in March due to flight restrictions amid the Iran-US war.

Dubai International airport (DXB) held the status of the second busiest airport in the world in 2025, with 95.2 million passengers passing through Dubai’s main airport.

Flights were temporarily suspended in March as a fire broke out near the airport after a “drone-related incident”.

According to the most recent figures, DXB reported some 18.6 million passengers overall in the first quarter, down 20.6 per cent year on year.

Donald Trump again threatened to reopen hostilities with Iran unless it agrees to a deal on Wednesday, as negotiators reportedly closed in on a one-page memo supposed to end the war.

The president wrote on his Truth Social platform: “Assuming Iran agrees to give what has been agreed to … the already legendary Epic Fury will be at an end, and the highly effective blockade will allow the Hormuz Strait to be open to all, including Iran.”

But he issued yet another sinister threat that “if they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before.”

Safe transit through the Strait of Hormuz will be ensured with US threats coming to an end and new procedures in place, the Revolutionary Guards’ Navy said on Wednesday, according to state media, in Iran’s first reaction to the US pausing operations to help stranded ships pass through the strait.

The Guards’ statement did not specify what the new procedures entailed and thanked owners and captains of ships for respecting Iranian regulations when moving through the waterway.

Pope Leo has hit back at Donald Trump over his baseless claim that the pontiff is “endangering Catholics” by supporting Iran’s nuclear programme.

Speaking outside the papal residence in Castel Gandolfo, the Pope did not directly respond to Trump by name but said that the Catholic Church had always been opposed to nuclear weapons.

“The mission of the Church is to proclaim the Gospel, to preach peace,” he said. “If someone wants to criticise me for proclaiming the Gospel, let them do so truthfully. For years, the Church has spoken out against all nuclear weapons, so there is no doubt on that point.”

James C Reynolds reports:

Stocks leapt and oil prices dropped on Wednesday after a report said the White House believed it was closing in on a memorandum to end the war with Iran, while momentum in AI-driven trades accelerated.

The report by news outlet Axios said the US expected Iranian responses on several key points in the next 48 hours. A Pakistani source involved in the peace efforts confirmed the report to Reuters on Wednesday.

Europe’s leading stock indices climbed more than 2 per cent on Wednesday according to Euro News.

The US and Iran are closing in on a one-page memo to end their war, a Pakistani source involved in the peace efforts told Reuters on Wednesday, confirming an Axios report on the same.

“We will close this very soon. We are getting close,” the source said.

The US and Iran are close to an agreement, according to reports by Axios.

A one-page memo is being used as the basis for negotiations and would involve both sides lifting restrictions around transit through the Strait of Hormuz.

It could also involve Iran committing to a moratorium on nuclear enrichment and the US agreeing to lift its sanctions on the country and release billions in frozen Iranian funds.

Iranian foreign minister Abbas Araghchi has held a phone call with his Saudi counterpart, Prince Faisal bin Farhan Al Saud on the ongoing situation in the Middle East.

“The parties in this conversation, whilst reviewing the latest regional developments, stressed the continuation of the path of diplomacy and cooperation between regional countries to prevent the emergence and escalation of tension,” Araghchi said in a statement on his Telegram channel on Wednesday.