Diplomatic efforts to secure a highly anticipated ceasefire between the United States and Iran hit a severe bottleneck on Tuesday following a reported confrontation between US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu.

The friction comes even as Tehran continues reviewing a draft memorandum of understanding (MOU) aimed at reopening the strategic Strait of Hormuz.

Heated Exchange Over Air Strikes

According to reports carried by Axios, a furious phone conversation took place between President Trump and Prime Minister Netanyahu after recent Israeli military operations deep inside Lebanese territory threatened to destabilise delicate, ongoing backchannel diplomacy between Washington and Tehran.

Sources familiar with the matter indicated that Trump used strong language, questioning the timing of the strikes and reminding the Israeli premier of past political backing from Washington.

The diplomatic fallout was immediate. Hours after the report emerged, Iranian state media indicated that Tehran was maintaining a highly cautious posture regarding the proposed text.

Tehran Reviews Draft Pact

The semi-official Mehr News Agency, quoting an informed source close to Iran's negotiating team, stated that the Islamic Republic is meticulously evaluating the final text of the potential MOU with the United States.

The source noted that Washington’s historical record of "breaking commitments" has forced Iranian draft reviewers to adopt an exceptionally strict approach before sending a formal response.

Despite the friction, President Trump expressed optimism during a subsequent media interaction, stating he still anticipates a formal agreement within the week to extend the current ceasefire framework and restore maritime traffic through the Strait of Hormuz.

Lebanon Escalation Threatens Dialogue

The ground reality in southern Lebanon, however, remains highly volatile. Overnight, Israeli forces conducted extensive air strikes and artillery shelling across Nabatieh, Tyre, and several smaller villages including al-Mansouri and Jibshit. Local authorities confirmed multiple casualties, including a civilian vehicle targeted on the Nabatieh-Khardali road.

The continued military offensive drew a sharp response from Iranian Parliament Speaker and chief negotiator Mohammad Bagher Ghalibaf. Following a phone call with Lebanese Parliament Speaker Nabih Berri, Ghalibaf warned via social media that continued operations by Israeli forces would lead to a total suspension of the dialogue process with Washington.

Global Markets Feel Pressure

The protracted conflict continues to trigger economic adjustments worldwide. Fresh data revealed that the United States has drawn down its Strategic Petroleum Reserve (SPR) to 357.1 million barrels—its lowest level since early 2024—in an effort to stabilise global energy supplies.

Simultaneously, international agricultural sectors are tracking supply chain shifts, with Australian authorities cutting their annual wheat harvest outlook due to rising fertilizer and diesel costs linked to the prolonged closure of shipping lanes.

Uncertain Next Steps Ahead

While international mediators, including France, have called for an immediate cessation of hostilities and questioned the justification for extended military presence in southern Lebanon, the next 48 hours remain critical.

Diplomatic sources suggest that the final execution of the US-Iran MOU hinges entirely on stabilizing the Israel-Hezbollah front, which has seen repeated projectile interceptions and drone activity despite a preliminary nod to a US-backed peace proposal.

Putin Visits China for 25th Time, Holds Key Talks with Xi Jinping

Russian President Vladimir Putin began his two-day state visit to China on Tuesday night, marking his 25th trip to the country. On Wednesday, he was warmly received by President Xi Jinping at the Great Hall of the People in Beijing following a formal military inspection.

The two leaders inspected an honour guard together before heading into bilateral discussions. Notably, the meeting took place at the same prestigious venue where Xi had hosted US President Donald Trump just last week, underscoring Beijing’s balancing act amid complex global alignments.

Ceremonial Welcome and Narrow Format Talks

Putin, who arrived late on Tuesday and was greeted at the airport by Chinese Foreign Minister Wang Yi, joined Xi for what officials described as a “narrow format” meeting. Such sessions typically allow leaders to address sensitive issues away from larger delegations. The talks began slightly ahead of schedule at the Great Hall of the People.

According to initial readouts, the leaders discussed deepening bilateral relations, trade expansion, strategic cooperation, and the current global situation. Putin also held separate engagements with senior Chinese officials, with a wider format meeting involving full delegations expected later.

Relations at ‘Unprecedented Level’

In a video message released before his arrival, Putin described Russia-China relations as having reached an “unprecedented level,” built on trust, mutual understanding, and equal cooperation. He emphasised that both nations support each other on core issues of sovereignty and territorial integrity while expanding ties in politics, economy, and energy sectors.

Xi echoed similar sentiments, telling Putin that Beijing and Moscow should continue assisting each other in development and revitalisation. Chinese state media reported Xi describing the international situation as “complex and volatile, with unilateral hegemony running rampant.” He also highlighted the West Asia conflict as being at a “critical juncture,” stressing that ending hostilities was imperative.

Deepening Economic and Energy Ties

Trade between the two countries has grown substantially in recent years. Official figures show bilateral trade reached $228.1 billion last year, with Russia recording a significant surplus. Energy cooperation remains a cornerstone, with discussions likely covering the proposed Power of Siberia-2 gas pipeline. The project aims to deliver around 50 billion cubic metres of natural gas annually from Russia’s Yamal Peninsula to northern China via Mongolia.

The existing Power of Siberia-1 pipeline has been operational since late 2019. Strengthening these links has helped Russia offset some Western sanctions imposed after the Ukraine conflict, especially as recent tensions in West Asia, including risks around the Strait of Hormuz, have driven up global oil and gas prices.

Longstanding Personal and Strategic Partnership

Putin and Xi have met more than 40 times over the years, forging what many describe as one of the world’s most significant political partnerships. Xi’s first foreign visit as president in 2013 was to Russia, and Putin has frequently prioritised China in his early overseas trips.

Both leaders have publicly referred to each other as close friends and strategic partners. Sources familiar with the relationship note regular personal communication alongside formal diplomatic channels.

Broader Geopolitical Context

Experts observing the visit point to China’s efforts to maintain equilibrium in its relations with major powers. Putin’s trip, coming soon after Trump’s, is seen by some analysts as Beijing demonstrating its independent foreign policy and willingness to engage key players amid ongoing tensions over Ukraine, Iran, and global supply chains.

During the meeting, Putin invited Xi to visit Russia next year, stating that strong Beijing-Moscow ties contribute to global stability.

The visit comes as both nations navigate a challenging international environment, with continued focus on economic resilience and strategic coordination. Further outcomes from the