Iran "negotiating on fumes," Trump says, as Israel ramps up war in Lebanon

The U.S. military carried out additional defensive strikes against an Iranian military site on Wednesday, targeting a location deemed a threat to American forces and commercial shipping, according to a U.S. official. The strikes come as negotiations between the U.S. and Iran appear fragile, with President Trump describing Iran’s position as 'negotiating on fumes' during a Cabinet meeting. Trump also urged Gulf nations like Qatar and Saudi Arabia to join the Abraham Accords to normalize relations with Israel. In Lebanon, Israel escalated its campaign against Hezbollah, killing over 30 people on Tuesday and ordering evacuations in and around Tyre before launching strikes there on Wednesday. Lebanese officials reported the casualties, while Israeli forces continued targeting Hezbollah positions, raising concerns of broader regional escalation. Iran partially restored internet access on Wednesday after a monthslong shutdown, though connectivity remains disrupted, with services operating at around 86% capacity and heavy restrictions on platforms like YouTube and Instagram. Authorities justified the initial outage as a military measure following U.S. and Israeli strikes on February 28, though many Iranians fear renewed disruptions. Cybersecurity analyst Amir Rashidi warned that the shutdown may not be fully lifted, citing ongoing disruptions. The U.S. had previously conducted defensive strikes in southern Iran on Monday, targeting missile launch sites and Iranian boats attempting to place mines. Despite these actions, a U.S. official confirmed that the ceasefire with Iran remains in effect, though tensions persist. Meanwhile, Iran’s Revolutionary Guard indicated that while renewed fighting with the U.S. seems unlikely, the country is prepared for any outcome as negotiations continue. The regional instability has not deterred financial markets, with the S&P 500 hitting record highs in May despite rising gasoline prices, inflation concerns, and economic uncertainty. Goldman Sachs raised its S&P 500 target, reflecting investor confidence amid geopolitical tensions.