Iran says no final decision on US peace deal as negotiations continue

A major rescue operation was launched in the Arabian Sea on Sunday morning after an Indian-crewed dhow, MSV Virat 1, began sinking approximately 80 nautical miles off Ras Al Hadd in Oman.

Swift international response

The Indian-flagged mechanised sailing vessel ran into severe distress early Sunday, prompting a coordinated response from the US Navy, Indian Navy and merchant vessels in the area.

A US Navy P-8 maritime patrol aircraft operating in the region responded to the crisis by dropping an inflatable life raft near the sinking vessel. The aircraft crew monitored the evacuation from the air, ensuring all 14 Indian crew members successfully boarded the raft.

Indian Navy diverts ships

Upon receiving the alert, the Indian Navy immediately diverted its surface vessels towards the location. The merchant vessel MV Jabal Ali 9, a St Kitts and Nevis-flagged ship that had departed from Sohar in Oman and was headed to Mumbai, changed course to assist.

According to sources, the commercial ship intercepted the life raft and brought all 14 Indian mariners on board. Initial health assessments indicate the crew members are out of danger and in stable condition.

Engine failure cited

The Embassy of India in Muscat confirmed that the vessel experienced an engine failure that forced the crew to abandon ship. “It has emerged that the vessel experienced an engine failure, and the crew eventually transferred safely to a liferaft. Rescue operation is presently underway through ships in vicinity, under coordination of Omani authorities,” the embassy said in a post on X.

The exact cause of the flooding that led to the sinking remains under investigation. The incident occurred in waters near the Strait of Hormuz, one of the world’s most critical maritime corridors, though authorities have not linked the distress to the ongoing security situation in the region.

Iran cautious on peace deal

In a separate development, Iran has sought to downplay expectations of an immediate US-Iran peace deal, with Tehran saying no final decision has been made on the proposed memorandum of understanding.

Iran’s semi-official Fars news agency, citing a source close to the negotiating team, reported that the Islamic Republic has “not yet taken or announced its final decision” regarding the agreement. Political, legal and technical reviews are continuing at both the expert and decision-making levels.

This contradicts US President Donald Trump’s earlier claim that an agreement could be signed as early as Sunday. Trump wrote on Truth Social that the deal was “scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is OPEN TO ALL”.

Mixed signals

Iranian Foreign Ministry spokesman Esmaeil Baghaei told state media that the signing will not happen on Sunday, though he did not rule out the possibility in the coming days. “The likelihood of finalising the memorandum of understanding in the coming days is high,” he was quoted as saying.

Pakistan, which has played a key mediating role in the talks, said a framework agreement was closer than ever. Prime Minister Shehbaz Sharif said Pakistan was preparing for the electronic signing of the peace deal, followed by technical-level talks next week.

The proposed agreement is expected to extend the current ceasefire by 60 days, reopen the Strait of Hormuz to all shipping, and launch negotiations over Iran’s nuclear programme.

What’s next

The rescued Indian sailors are expected to be transferred to Indian Navy vessels for medical evaluation and eventual repatriation. Meanwhile, the world continues to watch as diplomatic efforts to end the US-Iran conflict reach a critical juncture, with both sides signaling that a deal may be close — even if the timing remains uncertain.

Trump says ceasefire holds with Iran despite US warship attacks, Chinese tanker hit in Hormuz

US President Donald Trump has indicated that the ceasefire with Iran remains in effect despite overnight clashes in the Strait of Hormuz, as Tehran confirmed a Chinese oil tanker came under attack with no casualties reported among crew members aboard.

The US military carried out retaliatory strikes on Iranian targets on Thursday, targeting sites it said were responsible for attacking American naval destroyers in what Pentagon officials described as unprovoked hostilities by Tehran.

Trump said US forces inflicted “significant damage” on Iranian positions after three American destroyers came under missile and drone fire, while also signalling he remained open to negotiations with the Iranian leadership.

No damage to US vessels

“There was no damage to the three destroyers, but major damage was dealt to the Iranian attackers,” Trump wrote on Truth Social, adding that drones fell “like a butterfly dropping to its grave.”

He warned that Washington would respond “a lot more violently” in future if Tehran does not quickly agree to a deal. The President described the strikes as a “love tap”, adding that “the ceasefire is going. It’s in effect.”

Iran’s top joint military command, however, accused Washington of violating the ceasefire by targeting an Iranian oil tanker and another ship entering the Strait of Hormuz, and by striking civilian areas.

Chinese vessel attacked

China’s Foreign Ministry confirmed that a Chinese oil tanker was attacked in the strait, with Chinese citizens on board. No crew members were reported injured in that incident, though Beijing expressed deep concern over the escalating tension.

Al Jazeera reported that China has announced an increase in retail petrol and diesel prices from May 9, with petrol rising by 320 yuan (approximately ₹4,440) per metric ton and diesel by 310 yuan (roughly ₹4,302) per metric ton.

1,500 ships stranded

The humanitarian impact continues to grow. Arsenio Dominguez, Secretary-General of the UN Maritime Agency (IMO), stated that approximately 1,500 ships are now stranded in the Strait of Hormuz region, with nearly 20,000 sailors trapped alongside them.

Indian sailors stranded near Hormuz have told media outlets they are living in fear as the conflict intensifies. “We’ve seen war, missiles, everything. We’re mentally exhausted,” Al Jazeera quoted an Indian sailor stranded at an Iranian port for nearly 10 weeks as saying. The sailor said he was surviving on basic food supplies including potatoes, onions, tomatoes and bread.

India in touch with Iran

The Ministry of External Affairs said New Delhi remains in touch with Iranian authorities over the safe passage of Indian vessels. MEA spokesperson Randhir Jaiswal confirmed that 11 Indian ships have returned so far, while 13 Indian-flagged vessels remain in the region.

“We are following all developments in West Asia. Any attack on civilian infrastructure or civilians is totally unacceptable to us,” Jaiswal said.

Oil prices have jumped following the clashes, with Brent crude futures rising as much as 7.5 percent during Thursday’s volatile trading session before easing to $101.12 per barrel on Friday morning.