Iran's Araghchi in Moscow, fighting intensifies in Lebanon

Work has not halted to bridge gaps between the United States and Iran, sources from mediator Pakistan said, despite the failure of face-to-face diplomacy after Donald Trump called off a trip by his envoys and told Iran to phone when it wants a deal.

Hopes of reviving peace efforts have receded since the US president scrapped a visit on Saturday by his envoys Steve Witkoff and Jared Kushner to Islamabad. Iranian Foreign Minister Abbas Araghchi shuttled in and out of the Pakistani capital twice over the weekend.

Araghchi, who also visited Oman, arrived on Monday in Russia to meet President Vladimir Putin, a longstanding ally.

Iran's envoy in Russia, Kazem Jalali, said in a post on X that Araghchi would meet Putin "in continuation of the diplomatic jihad to advance the country's interests and amid external threats."

"Iran and Russia are present in a united front in the campaign of the world's totalitarian forces against independent and justice-seeking countries, as well as countries that seek a world free from unilateralism and Western domination," Jalali said.

With the warring sides still seemingly far apart on issues including Iran's nuclear ambitions and access through the crucial Strait of Hormuz, oil prices resumed their upward march when trade reopened on Monday. Brent crude was up around 2.5% at around $108 a barrel.

"If they want to talk, they can come to us, or they can call us. You know, there is a telephone. We have nice, secure lines," Trump told Fox News.

"They know what has to be in the agreement. It's very simple: They cannot have a nuclear weapon; otherwise, there's no reason to meet," Trump said.

Islamabad reopens after lockdown to host talks

Iranian President Masoud Pezeshkian told Pakistani Prime Minister Shehbaz Sharif by phone on Saturday that Tehran would not enter "imposed negotiations" under threats or blockade, an Iranian statement said.

He said the United States should first remove obstacles, including its maritime blockade, before negotiators could begin laying the groundwork for a settlement.

In a sign that no face-to-face meetings are planned any time soon, streets reopened in Pakistan's capital Islamabad, which had been locked down for a week in anticipation of talks that never took place. The luxury hotel that had been cleared out to serve as a venue was again taking reservations from the public.

Pakistani officials said negotiations were still taking place remotely, but there were no plans to convene a meeting in person until the sides were close enough to sign a memorandum.

Although a ceasefire has paused the US-Israeli strikes on Iran that began on February 28, no agreement has been reached on terms to end a conflict that has killed thousands, driven up oil prices, fueled inflation and darkened the outlook for global growth.

Both sides could be settling in for a test of wills to see who can endure economic pain before making concessions.

Iran has largely blocked all shipping apart from its own from the Gulf through the Strait of Hormuz since the war began. This month, the United States began blockading Iranian ships, which Iran says must be halted as a condition for talks.

Fighting intensifies in Lebanon 

Fighting has intensified in Lebanon, where Israeli strikes killed 14 people and wounded 37 in the south on Sunday, according to the health ministry, making it the deadliest day since a ceasefire was agreed in mid-April.

Sunday's death toll included two children and two women, the health ministry added in a statement. Israel said one of its soldiers was also killed as a fragile ceasefire came under further strain.

Iran says it will not hold talks on the wider conflict unless a ceasefire also holds in Lebanon. Before that ceasefire, the Israeli military warned residents to leave seven towns beyond the "buffer zone" it occupied. The towns are north of the Litani River and the zone in southern Lebanon occupied by Israeli troops.

Israel and Hezbollah blame each other for violating the truce, which was agreed between Israel and the Lebanese government in Washington and extended last week.

Israeli forces have ordered hundreds of thousands of people out of their villages and have been bulldozing homes where they say Hezbollah fighters operated. The military warned residents on Sunday to leave seven more towns beyond the occupied buffer zone.

Reuters journalists on a vantage point across the border in northern Israel filmed columns of smoke rising into the sky above southern Lebanon and the constant sound of explosions.