Trump pauses strike on Iran

President Donald Trump said on Wednesday he was "an hour away" from ordering a strike on Iran but held off at the urging of Gulf allies including Qatar. Trump made the remarks during a White House briefing, crediting Qatar for requesting the delay while emphasizing that "serious negotiations" were underway. He warned Iran of "another big hit" if talks failed. 1/ The pause marks the latest twist in U.S.-Iran hostilities that escalated earlier this year. Trump referenced a prior U.S. strike on Iranian nuclear sites, saying the decision to hold fire came after Gulf states intervened to avoid broader regional fallout. Qatar's role stood out: Trump thanked the emir directly, noting Doha's mediation efforts had bought time for diplomacy. Gulf allies like the UAE and Saudi Arabia also reportedly urged restraint amid fears of oil disruptions in the Strait of Hormuz. 2/ Iran's response came via a formal proposal outlined by Foreign Minister Abbas Araghchi. Tehran offered to end hostilities across all fronts— including proxy conflicts in Yemen and Lebanon— in exchange for U.S. forces withdrawing from positions near its borders. The proposal also demands reparations for "wartime destruction," estimated by Iranian state media at $500 billion. President Masoud Pezeshkian reiterated no sovereignty concessions, such as limits on missiles or nuclear activities, would be on the table. 3/ U.S. Vice President JD Vance described the talks as in a "good spot" during a Fox News interview on Wednesday, but stressed Iran's demands were non-starters without verifiable steps on nuclear restraint. Trump allies, including adviser Steve Witkoff, have pushed indirect talks via Oman and Qatar. No direct U.S.-Iran meetings are scheduled, but U.S. officials say backchannels remain active. 4/ Oil prices dipped 2% to $82 per barrel after Trump's announcement, as traders priced in a lower risk of Strait of Hormuz closure. The U.S. has 40,000 troops in the region, with carriers positioned in the Gulf. Iranian FM Araghchi is set to address a UN Security Council meeting in New York next week, where he may elaborate on the proposal. Trump said any deal must include Israel's security guarantees. 5/ Broader context: The conflict stems from Iran's missile attacks on U.S. bases in Iraq and Syria in January, following Israeli strikes on Hezbollah. A fragile ceasefire holds in Gaza, but Houthi attacks on shipping persist. Russia and China have voiced support for Iran, with Putin offering mediation. Trump dismissed it, saying "we don't need help from them." Markets watch for progress before the June 15 G7 summit in Italy.