Iran and the United States have reportedly agreed to suspend recent military hostilities in the Gulf and resume negotiations over the Strait of Hormuz, according to a U.S. official, raising hopes that a fragile interim peace agreement can still be preserved after days of escalating violence.

According to the official, both countries have agreed to temporarily stand down while technical discussions continue under the 14-point Memorandum of Understanding (MOU) signed on June 17.

“Technical talks are slated to continue on all areas of the MOU. Both sides will stand down for now and vessels can move freely,” the official said, referring to the agreement that reopened the Strait of Hormuz to commercial shipping.

Axios, which first reported the pause in hostilities, quoted a senior U.S. official as saying that negotiations are expected to resume on Tuesday in Qatar.

The renewed diplomatic effort follows several days of military exchanges that began after an Iranian projectile struck a cargo vessel in the Strait of Hormuz on Thursday. Both Washington and Tehran have since accused each other of violating the interim ceasefire reached earlier this month.

Early Sunday, Iran launched missiles and drones targeting U.S. military facilities in Kuwait and Bahrain shortly after U.S. President Donald Trump warned that Iran would face severe consequences if it failed to honour the agreement to end the conflict.

At the same time, Israel announced fresh strikes against Iran-backed Hezbollah fighters in southern Lebanon, destroying what it described as underground infrastructure used by the group. The latest operation followed another strike carried out on Saturday, shortly after Israel reached a separate ceasefire agreement with Lebanon on Friday.

Iran has maintained that lasting peace in Lebanon is essential for the broader regional agreement to remain in place.

Earlier, the U.S. military also confirmed carrying out another strike against Iran, hours after a tanker was attacked in the Strait of Hormuz, one of the world’s most critical energy shipping routes, which Tehran has largely restricted during the conflict.

Before reports of the new diplomatic breakthrough emerged, President Trump issued a stern warning on social media.

“There may come a point when we are no longer able to be reasonable, and will be forced to militarily complete the job that we very successfully started,” Trump wrote.

“If that happens, the Islamic Republic of Iran will no longer exist!” he added.

The interim 14-point peace agreement was designed to halt fighting that began on February 28 and ensure the reopening of the Strait of Hormuz while both countries negotiated broader issues, including Iran’s nuclear programme.

Although one round of talks was held in Switzerland last week under the mediation of U.S. Vice President JD Vance and Iranian parliamentary speaker Mohammad Baqer Qalibaf, with Washington easing some sanctions against Tehran, tensions have since escalated.

Shortly after Trump’s warning, Kuwait announced that its air defence systems had intercepted incoming missiles and drones, while Bahrain activated emergency sirens as attacks unfolded.

Iran’s Islamic Revolutionary Guard Corps (IRGC) later confirmed that its naval and air forces had launched missile and drone attacks against U.S. military sites in Kuwait and Bahrain.

The IRGC accused Washington of violating the ceasefire agreement.

“will result in the complete halt of all diplomatic processes”, the Guards said, according to state-run Press TV.

The IRGC naval command further warned that American military bases in the region “will experience hell in the coming days”.

A U.S. official confirmed that American facilities had been targeted but said there were no reported U.S. casualties or significant damage, although the situation remained under assessment.

Later on Sunday, Bahrain reported a second wave of alarms after an Iranian strike damaged a residential building in Muharraq province. Authorities said no casualties were recorded but called on the United Nations Security Council to convene an emergency meeting to hold Iran accountable.

Meanwhile, Kuwait said its military successfully intercepted two ballistic missiles without any casualties or property damage.

Separately, Qatar confirmed that one of its citizens died after sustaining injuries from shrapnel aboard a vessel that went missing on Saturday. Another individual was injured in the same incident.

Qatari authorities said the casualties resulted from “military operations in the area”, although they did not specify the location or assign responsibility.

Southeastern Europe continued to grapple with the effects of a record-breaking heatwave on Monday, as soaring temperatures fueled wildfires, disrupted daily life, and heightened concerns over public safety across several countries.

Meteorologists have also warned that another wave of extreme heat is expected to build from next week, particularly in countries such as France and Germany, which have already experienced some of the most severe conditions in recent days.

In Croatia, the national weather service issued a red alert for several regions, including the capital, Zagreb, and popular tourist destinations such as Split and Dubrovnik, warning residents to take precautions against dangerous heat levels.

On the Adriatic island of Vis, approximately 55 kilometres southwest of Split, dozens of firefighters supported by four aircraft battled a wildfire that swept through pine forests.

Neighbouring Serbia also faced intense heat, with the State Hydrometeorological Service (RHMZ) forecasting temperatures as high as 39 degrees Celsius (102 degrees Fahrenheit) on Monday.

Further south, authorities in Albania managed to contain a wildfire that destroyed large areas of bushes and olive trees near the southern village of Klos during the weekend.

Scientists have described the ongoing heatwave, which began on June 20, as the worst ever recorded in Europe. The prolonged high temperatures have disrupted electricity generation, damaged infrastructure, and placed significant pressure on healthcare systems across the continent.

France has reported approximately 1,000 excess deaths linked to the extreme weather. According to the French public health agency, most of the victims were elderly people, with officials warning that the number of heat-related fatalities could continue to rise.

Researchers have also concluded that the current heatwave would have been “virtually impossible” without human-induced climate change, saying rising global temperatures have made this week’s exceptionally hot nights 100 times more likely than they would have been just two decades ago.

Luca Mercalli, President of the Italian Meteorological Society, warned that temperatures are expected to climb again around July 5 and 6.

“The areas affected look broadly the same as in the first wave, including France, Spain, Germany, Italy, Switzerland and to some extent Britain,” he told Reuters.

He also noted that while extreme temperatures increase the risk of wildfires, scattered thunderstorms could reduce the danger in some locations.

“With the extreme heat the risk of forest fires increases, but we are also seeing a lot of rainstorms, which obviously mitigates that risk,” he said, adding that the storms remain highly localised, meaning rainfall amounts differ significantly from one area to another.

The heatwave also claimed more lives over the weekend.

In Cyprus, police confirmed that two boys aged eight and ten were found dead inside a hot car on Sunday afternoon. The Mediterranean island is currently recording temperatures of about 38 degrees Celsius, although officials noted that such temperatures are not considered unusual for this time of year.

In Poland, two cyclists aged 30 and 71 died while participating in a Poland Bike Marathon event in Marki, near Warsaw, on Sunday.

The country also recorded a new all-time temperature record of 40.5 degrees Celsius on Sunday, highlighting the widespread impact of the unprecedented European heatwave.

Ethiopia has reached a preliminary agreement with major bondholders to restructure its $1 billion defaulted international bond, bringing the country a step closer to resolving a debt crisis that has persisted for several years.

Under the proposed agreement, Ethiopia will issue a new $880 million bond carrying a 6.15% interest rate, with repayments scheduled in installments through July 2029. The government will also settle three missed interest payments worth nearly $100 million, along with a consent fee for participating bondholders.

As part of the deal, bondholders will receive a New Money Warrant, giving them the option to invest in a future Ethiopian bond worth up to $1 billion at market-based interest rates. Alternatively, the government may choose to compensate investors with cash payments of up to $90 million.

The International Monetary Fund has approved the warrant structure, saying it aligns with Ethiopia’s debt sustainability goals. The proposal has also received the backing of the country’s Official Creditor Committee, which includes major bilateral lenders such as China and France.

The agreement follows months of difficult negotiations after Ethiopia defaulted on the bond in December 2023 by missing a $33 million interest payment. Previous restructuring efforts collapsed earlier this year after disagreements between official creditors and bondholders.

Ethiopia plans to complete the restructuring through a bond exchange in the coming months once the remaining non-financial terms are finalized. Investors welcomed the breakthrough, with the country’s international bonds rising to their highest level since January.

Rescue teams are continuing search operations across Venezuela following the two powerful earthquakes that struck the country last week, with officials saying signs of life are still being discovered amid the rubble.

According to government figures released on Sunday, the death toll from Wednesday’s twin earthquakes has climbed to nearly 1,500 people, while thousands remain injured and displaced.

Foreign rescue teams have continued arriving in La Guaira, the state worst affected by the disaster. Dozens of buildings collapsed across the coastal region, located about 40 kilometres north of Caracas.

“Rescue and recovery efforts are ongoing. Today (Sunday) we have recovered people alive and, therefore, operations are not being suspended. We always maintain hope,”

interim President Delcy Rodriguez said after announcing the creation of a presidential commission to assess the safety of damaged buildings.

Rodriguez also announced that school activities would remain suspended for another week and said electricity supply in La Guaira had been restored to about 75 percent.

Government tightens access to disaster zone

While the government initially welcomed civilian volunteers delivering aid to affected communities, authorities later restricted access to the main road into La Guaira, saying heavy traffic was slowing the movement of emergency vehicles.

Jorge Rodriguez, who is also the acting president’s brother, said the official death toll increased by 20 on Sunday to reach 1,450.

He added that:

• 3,150 people have been injured
• 12,721 people have been displaced
• 774 buildings have collapsed

“We are in critical hours, in crucial hours to continue rescuing lives and to build camps where those people who have lost their homes, or who cannot return, for whatever reason, to their residences can stay,”

he said.

Thousands still unaccounted for

Families and volunteers spent several days searching through debris before the arrival of more than 2,600 foreign rescue workers. Residents have complained about a shortage of heavy equipment and limited official presence during the early stages of the response.

Although the government says several hundred people are still missing or trapped, an online registry promoted by opposition groups listed just under 50,000 people as unaccounted for on Sunday, down from about 55,000 a day earlier.

Rescuers race against time

The United States Geological Survey has warned that the final death toll from the 7.2 and 7.5 magnitude earthquakes could exceed 10,000 people, potentially making them among the deadliest earthquakes in Latin America in the past century.

“There exists a window of roughly three days, 72 hours, where the probability afterwards decreases that you can save people alive,”

said Sebastian Eugster.

He said the 80-member Swiss team located several survivors using search dogs, although some could not be reached in time.

Children rescued from rubble

Rescue workers from several countries have continued to pull survivors from collapsed buildings.

The U.S. State Department confirmed that American rescue crews saved an infant on Saturday, while a Colombian team rescued an 11-year-old boy identified as Moises, who had been trapped about three metres beneath rubble.

Mexican rescuers later freed another 11-year-old boy from a collapsed building in Caraballeda.

Pope Leo also expressed solidarity with the Venezuelan people during the Angelus prayer in Rome and thanked rescue workers for their efforts.

International aid and political developments

A senior U.S. official said a new aid package worth several hundred million dollars is expected to be announced in addition to the $150 million already committed by the administration of President Donald Trump.

Opposition leader and Nobel Peace Prize winner Maria Corina Machado said she plans to return to Venezuela after living in hiding and later leaving the country in December to receive her award.

Meanwhile, Venezuela’s largest refinery, the Amuay Refinery, reportedly shut down operations on Sunday following a major power outage in Falcon State.

Outlook

Rescue efforts remain underway as authorities and international teams continue searching for survivors. With aftershocks still being recorded and thousands displaced, officials say the coming days will be critical for both emergency response and long-term recovery planning.