Iran war live: Trump threatens to seize key island and ‘take control’ of Tehran’s oil

President Donald Trump walked back his threat to strike Iran “hard” tonight, citing progress being made in peace negotiations.

“Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening,” the Republican president wrote on Truth Social on Thursday afternoon.

He added that “discussions and final points” have been “approved by all parties involved,” with a formal announcement set to be unveiled “shortly.”

Just hours earlier, Trump had issued a bombastic warning, threatening to threatening to seize Kharg Island, a strategic hub for oil exports, after striking the country “VERY HARD.”

The missive came after Iran declared the ceasefire with Washington “practically meaningless” after U.S. forces fired 49 Tomahawk missiles on Wednesday. On Thursday, both sides traded strikes for the second day in a row, leaving a fragile ceasefire in jeopardy.

Tehran condemned the “illegal and criminal attacks” by the U.S. — which they claimed violate the U.N. Charter — and warned U.S. leaders will be held responsible. U.S. Central Command described its attacks on military surveillance and air defense sites as a form of “self-defense.”

In response, Iran launched strikes targeting 18 U.S. airbases in the Gulf region, forcing the Kuwaiti government to temporarily shut its airspace and Bahrain to sound air sirens.

GOP senator expressed concern about Kharg Island operation

A Republican lawmaker expressed concern about President Trump’s threat to invade Iran’s Kharg Island, a key oil hub.

“I'm worried about the move on Kharg Island,” Louisiana Sen. John Kennedy told reporters on Thursday, according to CBS News. “I'm not saying the president's wrong, but this is how it started in Vietnam. Committing troops is a very, very, very dramatic step.”

On Thursday morning, Trump had threatened to strike Iran “hard” this evening and claimed the U.S. would seize Kharg Island “in the not too distant future.” However, hours later, he called off the strikes, citing progress in peace negotiations. In his latest statement, he made no mention of Kharg Island.

Trump was 'furious' over perceptions of Iran war in lead up to strikes: report

In the lead up to the U.S.’ renewed strikes on Iran this week, President Trump reportedly became “furious” over perceptions that American military action hadn’t gone far enough.

“Sources tell CNN that President Trump is growing more and more furious, especially this week, after he ordered new strikes in Iran,” CNN’s Dana Bash said on Thursday. “They say he felt both Tehran and the media didn't view U.S. military action as powerful enough, so he ordered another round of strikes yesterday in the hopes of forcing Iran to come to the table in a way that they will accept a deal.”

Stocks rally and oil tumbles after Trump's announcement

U.S. stocks rallied and oil prices tumbled after President Trump walked back his threat to strike Iran “hard” and stated that a peace deal was in reach.

The S&P 500 ticked up 1.1 percent, while the Nasdaq added 1.5 percent, according to CNBC. Meanwhile, West Texas Intermediate crude futures traded down 3 percent to about $86 a barrel, following Trump’s announcement.

Iranian embassy calls Trump's threat to seize Kharg Island 'futile'

Iranian officials described President Trump’s threat to seize Kharg Island as “futile.”

“Trump wants Kharg? A futile attempt with severe consequences,” the Iranian embassy in South Africa wrote on X.

Alongside the post, the embassy included an image of coffins draped with American flags floating in the Persian Gulf.

On Thursday morning, Trump vowed to hit Iran “VERY HARD TONIGHT” and added: “At some point in the not too distant future, we will be taking Kharg Island.”

Situated a few miles off the coast of Iran, Kharg Island is strategically important since it serves as the export hub for most of the Middle Eastern nation’s oil exports.

World Bank lowers global growth forecast amid Iran war

On Thursday, the World Bank lowered its global growth forecast to its lowest level in years amid the ongoing Iran war.

The international financial institution said in a statement that global growth is now projected to decrease to 2.5 percent in 2026, down from 2.9 percent last year, marking the lowest rate of growth since the pandemic.

“The conflict in the Middle East has triggered sharp increases in energy prices, renewed inflationary pressures, and fueled expectations of tighter monetary policy,” the World Bank said.

“Activity is expected to firm in 2027–28 as energy supplies recover, monetary easing resumes, and trade strengthens,” it added.

Trump walks back threat to strike Iran 'hard,' says 'final points' in negotiations have been agreed upon

Trump chose to strike Iran after obtaining latest peace proposal: report

A senior negotiator involved in organizing U.S.-Iranian peace talks said President Donald Trump chose to strike Iran after obtaining a copy of the latest proposal.

The president, the unnamed official told NBC News, “has the deal in his hands now.”

U.S. officials were expected to hand their latest proposal to Mohammad Bagher Ghalibaf, Iran’s top negotiator, the source said. But, U.S. strikes threw a wrench in negotiations.

On Thursday, the U.S. and Iran traded strikes for the second day in a row and Trump threatened to invade Kharg Island.

Iranian student says hope is fading following latest attacks

For one Iranian student, hope is fading as renewed U.S.-Iran attacks threaten to unravel a fragile ceasefire that has been in place for weeks.

The 25-year-old, based in northern Iran, told The Associated Press that many Iranians are struggling to afford food amid soaring inflation and job losses.

“Everything is going wrong and there is no hope among the people,” the student said.

Iran's parliamentary speaker appeared to respond to Trump's threat — before he walked it back

Iran’s parliamentary speaker appeared to respond to President Trump’s threat to hit Iran “VERY HARD” and to seize Kharg Island.

“Wrong strategies and impulsive decisions will reset the entire board for the worse, explode energy infrastructure and markets and create an endless quagmire that you will be stuck in for years,” Mohammad Bagher Qalibaf wrote on X on Thursday morning. “You will see a different Iran.”

Shortly after, Trump called off planned U.S. strikes, citing progress made in peace negotiations.

Full report: Trump says he’ll hit Iran ‘very hard tonight’ after dropping ‘$250 million worth of bombs’ a night earlier

President Donald Trump threatened Thursday to escalate the current wave of American attacks on Iran even further and potentially dispatch ground troops to seize the country’s main oil export facility — even as he is voicing doubts about the American public’s tolerance for the now four-month-old war.

The president first took to Truth Social early in the morning to declare that the U.S. “will be hitting Iran ... VERY HARD TONIGHT” and warned that American forces would be “taking Kharg Island, and other oil infrastructure points” and assuming “total control” of Tehran’s petroleum sector “at some point in the not too distant future.”

He also compared the proposed invasion of Iranian territory to the way the U.S. installed a compliant leader in Venezuela this past January and established close cooperation to resume oil exports from that country while opining on how the change of regime in Caracas has been “working out brilliantly” for both countries.

Our White House correspondent Andrew Feinberg reports: