WRAPUP 7-Iran says it has sent response to US peace proposal

Iran has sent its response to ‌a U.S. ​proposal for peace talks to end the war, Iranian state media reported on Sunday, as two ships were allowed to pass through the blockaded Strait of Hormuz. The response focused on ending the war on all fronts, especially Lebanon, and on the safety of shipping through the strait, Iranian state TV said, without indicating how or when the vital waterway might reopen.

It followed a U.S. proposal to end ‌fighting before starting talks on more contentious issues, including Iran's nuclear program. Pakistan, which has been mediating talks over the war, forwarded the Iranian response to the U.S., a Pakistani official said. There was no immediate U.S. comment.

Despite a month-old ceasefire in the conflict and after some 48 hours of relative calm, hostile drones were detected over several Gulf countries on Sunday, underlining the threat still facing the region. Still, the QatarEnergy-operated carrier Al Kharaitiyat passed safely through the strait and was heading for Pakistan's Port Qasim, according to data from shipping analytics firm Kpler, the first Qatari vessel carrying ‌liquefied natural gas to cross the strait since the U.S. and Israel started the war on February 28.

Sources said earlier the transfer, which offered a modicum of relief to Pakistan after a wave of power blackouts caused by a halt to gas imports, had been ‌approved by Iran to build confidence with Pakistan and with Qatar, another mediator. In addition, a Panama-flagged bulk carrier bound for Brazil that had previously attempted to transit the strait on May 4 passed through, using a route designated by Iran’s armed forces, Iran’s semi-official Tasnim news agency reported on Sunday.

TRUMP UNDER PRESSURE TO END WAR AHEAD OF CHINA VISIT With U.S. President Donald Trump due to visit China this week, there has been mounting pressure to draw a line under the war, which has ignited a global energy crisis and poses a growing threat to the world economy.

Tehran has largely blocked non-Iranian shipping through the narrow Strait of Hormuz, which before the war ⁠carried one-fifth of the ​world's oil supply and has emerged as one of the central pressure points ⁠in the war. Addressing whether combat operations against Iran were over, Trump said in remarks aired on Sunday: "They are defeated, but that doesn't mean they're done."

Israeli Prime Minister Benjamin Netanyahu said the war was not over because there was "more work to be done" to remove enriched uranium from Iran, dismantle enrichment sites and address Iran's proxies and ⁠ballistic missile capabilities. The best way to remove the enriched uranium would be through diplomacy, Netanyahu said in an interview with CBS News' "60 Minutes," without ruling out removing it by force.

Iran's President Masoud Pezeshkian said in a social media post that Iran would "never bow down to the enemy" and would "defend national interests ​with strength". Despite diplomatic efforts to break a deadlock, the threat to shipping lanes and the economies of the region remained high.

On Sunday, the United Arab Emirates said it intercepted two drones coming from Iran, while Qatar condemned a drone attack that ⁠hit a cargo ship coming from Abu Dhabi in its waters. Kuwait said its air defences had dealt with hostile drones that entered its airspace. Recent days have seen the biggest flare-ups in fighting in and around the strait since a ceasefire began: the UAE came under renewed attack on Friday and sporadic clashes were reported between Iranian forces and ⁠U.S. ​vessels in the strait.

Clashes have also continued in southern Lebanon between Israel and Iran-backed militant group Hezbollah, despite a U.S.-brokered ceasefire announced on April 16. Hostilities between Israel and Hezbollah reignited on March 2 when the Lebanese group opened fire after Tehran came under U.S.-Israeli attack. The latest talks between Israel and Lebanon are due to start in Washington on May 14.

INTERNATIONAL MISSION PREPARATIONS DRAW IRANIAN WARNING Though Washington imposed its own blockade on Iranian vessels last month, Tehran has taken its time before responding to calls to end a war that surveys ⁠show is unpopular with U.S. voters facing ever-higher gasoline prices.

The U.S. has also found little international support, with NATO allies refusing calls to send ships to open the Strait of Hormuz without a full peace deal and an internationally mandated mission. Britain, which has been working ⁠with France on a proposal to ensure safe transit through the strait ⁠once the situation stabilises, said on Saturday it was deploying a warship to the Middle East in preparation for such a mission, following a similar move by France.

Iran's Deputy Foreign Minister Kazem Gharibabadi said on social media that any stationing of British, French or other warships around the Strait of Hormuz under the pretext of "protecting shipping" would be an escalation and would be met by force. In response, French President ‌Emmanuel Macron said France was standing ready to ‌help the international mission, but "we have never envisaged a military deployment to re-open Hormuz".