U.S.-Iran Peace Talks Continue Despite Escalating Military Strikes

The United States and Iran continued negotiations over a potential peace agreement overnight, even as both countries exchanged military strikes for a second consecutive day, according to reports from CNN and Reuters.

Sources cited by Reuters said Washington and Tehran remain engaged in discussions over a preliminary framework that could include the release of frozen Iranian assets. Diplomatic efforts to reach an agreement have reportedly intensified, although uncertainty continues to cloud the talks.

President Donald Trump warned Iran that further military action could follow if Tehran does not quickly accept a peace deal. His comments came amid growing tensions and an expanding military confrontation in the region.

The U.S. Central Command (CENTCOM) confirmed that American forces carried out strikes against multiple military targets in Iran late Wednesday and early Thursday. U.S. officials described the operations as acts of self-defense following the reported downing of a U.S. helicopter near the Strait of Hormuz earlier this week.

In response, Iran launched attacks targeting U.S. military facilities and allies across the Gulf region. Unconfirmed reports indicated explosions were heard in Kuwait, Bahrain, and Jordan. Tehran also claimed it had blocked maritime traffic through the Strait of Hormuz, a statement CENTCOM later denied.

The latest escalation follows nearly two weeks of intermittent military exchanges between the U.S. and Iran, raising concerns about broader regional instability. Iran and Israel have also continued trading strikes, linked to ongoing hostilities involving Hezbollah militants in Lebanon. The Israeli military reported projectile launches from Lebanon early Thursday.

Despite the military conflict, financial markets reacted cautiously. Oil prices initially rose after news of the latest attacks but later retreated. However, Brent crude remains significantly above pre-conflict levels, fueling concerns that higher energy costs could increase global inflation and influence central bank policy decisions.

Trump also commented on rising inflation after recent U.S. data showed consumer prices accelerating in May. He stated that the U.S. had been quietly facilitating oil shipments through the Strait of Hormuz, claiming total crude flows reached approximately 100 million barrels.

Investors continue to closely monitor developments in the U.S.-Iran conflict, peace negotiations, oil markets, and the broader geopolitical outlook, as any breakthrough or escalation could have significant consequences for global energy prices and financial markets.