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Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

Middle East War updates: Iran warns of expanded strikes against US despite progress in talks

Iran's Supreme Leader has directed his military commanders to prepare for a potential escalation against the United States and Israel. This comes despite top diplomat Abbas Araghchi indicating progress in ongoing diplomatic talks. Khamenei stated that every threat should be met with an immediate and effective response, without geographical limitations.

US Secretary of State Marco Rubio affirmed that Washington has not decided to renew strikes on Tehran, and prefers a diplomatic resolution. However, Rubio noted that the US retains the capability to pursue any military objective if necessary. Iranian Foreign Minister Araghchi disclosed that an Iranian delegation was in Qatar for talks with mediators.

He emphasized the conditions for these talks, including the lifting of sanctions imposed following the Islamabad memorandum, the reduction of US forces in the region, restoration of oil waivers, and the release of all frozen Iranian funds.

Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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