Yemen Conflict

The US Federal Reserve raised interest rates for the first time since 2023, while a war-damaged building collapsed in Gaza City killing at least 21 Palestinians. US officials met Houthi representatives in Oman, and Sweden expelled an Iranian embassy employee over threats to Jewish and Israeli interests.

Lebanon and Israel reported positive progress on border demarcation and prisoner issues after the seventh round of talks, while agreeing on a shortlist of countries to verify Hezbollah disarmament. Houthi forces launched fresh attacks in Yemen's Marib and Hadramout, killing at least five, and threatened further escalation. A Hezbollah explosive drone struck near Israeli troops in southern Lebanon without causing casualties.

The US launched a fourth consecutive night of strikes on Iranian military targets and reimposed a naval blockade on Iranian ports, while Iran retaliated with ballistic missile attacks on Jordan and strikes on US bases in Kuwait and Bahrain. President Trump reversed his plan for a 20% Hormuz toll, replacing it with Gulf investment deals, and threatened to bomb Iranian bridges and power plants unless talks resume. US-brokered talks between Israel and Lebanon continued in Rome, with Israel signaling readiness to withdraw from two pilot zones in south Lebanon.