Category: Business Wires

LONDON — Keir Starmer fights another day.

After indirect fallout from the Jeffrey Epstein files sparked a dramatic day of crisis that threatened to topple him, the U.K. prime minister was saved by a pugnacious fightback and hesitation among his rivals inside the governing Labour Party about the consequences of a leadership coup.

Energy Secretary Ed Miliband said Tuesday that Labour lawmakers had “looked over the precipice … and they didn’t like what they saw.”

“And they thought the right thing was to unite behind Keir,” Miliband told the BBC.

He might have added: For now.

Mandelson blowback

Starmer’s authority over his center-left party has been battered by aftershocks from the publication of files related to Epstein — a man he never met and whose sexual misconduct hasn’t implicated him.

But it was Starmer’s decision to appoint veteran Labour politician Peter Mandelson, a friend of Epstein, as U.K. ambassador to Washington in 2024 that has led many to question the leader’s judgment and call for his resignation.

Starmer has apologized, saying Mandelson had lied about the extent of his ties to the convicted sex offender. And he vowed to fight for his job.

“I will never walk away from the mandate I was given to change this country,” Starmer said Tuesday as he visited a community center in southern England. “I will never walk away from the people that I’m charged with fighting for and I will never walk away from the country that I love.”

Starmer’s risky decision to appoint Mandelson – who brought extensive contacts and trade expertise but a history of questionable ethical judgment – backfired when emails were published in September showing that Mandelson had maintained a friendship with Epstein after the financier’s 2008 conviction for sex offenses involving a minor.

Starmer fired Mandelson, but a new trove of Epstein files released last month by the U.S. government contained more revelations. Mandelson is now facing a police investigation for potential misconduct in public office over documents suggesting that he passed sensitive government information to Epstein. He’s not accused of any sexual offenses.

Simmering discontent

The Mandelson scandal may be the final straw that finishes Starmer’s premiership. But it follows discontent that has built since he led Labour to a landslide election victory 19 months ago.

Some of Starmer’s problems stem from a turbulent world and a gloomy economic backdrop. He has won praise for rallying international support for Ukraine and persuading U.S. President Donald Trump to sign a trade deal easing tariffs on U.K. goods. But at home, he has struggled to bring down inflation, boost economic growth and ease the cost of living.

Despite a huge parliamentary majority that should allow the government easily to implement its plans, Starmer has been forced to make multiple U-turns on contentious policies including welfare cuts and mandatory digital ID cards.

Starmer has been through two chiefs of staff, four directors of communications and multiple lower-level staff changes in Downing Street. The prime minister’s powerful chief of staff, Morgan McSweeney, resigned Sunday over the decision to appoint Mandelson. Communications director Tim Allan left the next day.

Scottish Labour leader Anas Sarwar then held a news conference on Monday and called for Starmer to resign. If other senior party figures had followed, the pressure would have been impossible for Starmer to resist.

But none did. Instead, Starmer’s Cabinet and parliamentary colleagues posted apparently choreographed messages of support. They included former Deputy Prime Minister Angela Rayner and Health Secretary Wes Streeting, considered the two most likely challengers for the top job.

Then, came a highly charged meeting with Labour members of Parliament, where Starmer impressed many with his sense of resolve. Lawmakers in the room said that the mood, initially skeptical, became supportive.

“It was clear he was up for the fight,” said Chris Curtis, one of more than 200 Labour lawmakers elected in the 2024 Starmer landslide.

Temporary reprieve

Starmer appears to have more political lives than Larry the cat, who has outlasted five prime ministers during 15 years as “chief mouser” in Downing Street.

But his respite is likely to be temporary. Many Labour lawmakers remain worried about their reelection chances if the party’s dire opinion poll ratings don’t improve.

Some female party members feel particularly disappointed by Mandelson’s appointment. The Labour leader of Wales, First Minister Eluned Morgan, called revelations about Mandelson “deeply troubling, not least because, once again, the voices of women and girls were ignored.

“That failure must be acknowledged and confronted honestly,” she said, while offering support for Starmer.

Labour faces potential electoral setbacks at a Feb. 26 special election in what was once a party stronghold in northwest England, and in May’s elections for legislatures in Scotland and Wales and local councils in England.

And rivals are still plotting. The Guardian reported that an “Angela for leader” website backing Rayner briefly went live last month by accident. Streeting, whose genial relationship with Mandelson is now a weakness, released messages he’d exchanged with Mandelson before and after the ambassadorial appointment, seemingly in an attempt to show the men weren’t close friends.

The exchanges include implicit criticism of Starmer, with Streeting writing that the government had “No growth strategy at all.”

Tim Bale, professor of politics at Queen Mary University of London, said that Starmer had “bought himself some time” and challengers were “keeping their powder dry” for the moment.

“It’s very difficult to image after the shellacking that the party will presumably face in May, him continuing to lead the party much beyond this summer,” Bale said.

Though in British politics, nothing is impossible.

“There are problems with the other candidates,” Bale said. ”It’s never an ideal situation for any party to be choosing a prime minister in midterm, and it may be that the Labour Party decides, better the devil you know. I suspect that Keir Starmer will go, but who knows?”

HONG KONG — Jimmy Lai, the pro-democracy former Hong Kong media tycoon and a fierce critic of Beijing, was sentenced on Monday to 20 years in prison in the longest punishment given so far under a China-imposed national security law that has virtually silenced the city’s dissent.

Lai, 78, was convicted in December of conspiring with others to collude with foreign forces to endanger national security, and of conspiracy to publish seditious articles. The maximum penalty for his conviction was life imprisonment.

His co-defendants, six former employees of his Apple Daily newspaper and two activists, received prison terms of between 6 years and 3 months, and 10 years on collusion-related charges.

Lai smiled and waved at his supporters when he arrived for the sentence. But before he left the courtroom, he looked serious, as some people in the public gallery cried. When asked about whether they would appeal, his lawyer Robert Pang said “no comment.”

Lai’s daughter says he will die ‘a martyr’ in prison

The democracy advocate’s arrest and trial have raised concerns about the decline of press freedom in what was once an Asian bastion of media independence. The government insists the case has nothing to do with a free press, saying the defendants used news reporting as a pretext for years to commit acts that harmed China and Hong Kong.

Lai was one of the first prominent figures to be arrested under the security law in 2020. Within a year, some of Apple Daily’s senior journalists also were arrested and the newspaper shut down in June 2021.

Lai’s sentencing could heighten Beijing’s diplomatic tensions with foreign governments, which have criticized Lai’s conviction and sentencing.

U.S. President Donald Trump, who is expected to visit China in April, said he felt “so badly” after the verdict and noted he spoke to Chinese leader Xi Jinping about Lai and asked him “to consider his release.”

British Prime Minister Keir Starmer’s government also has called for the release of Lai, who is a British citizen. U.K. Foreign Secretary Yvette Cooper called the prosecution “politically motivated,” saying the prison term is tantamount to a life sentence.

In a statement, Lai’s son, Sebastien, said the “draconian” prison term was devastating for his family and life-threatening for his father. “It signifies the total destruction of the Hong Kong legal system and the end of justice,” he said.

His sister Claire called the sentence “heartbreakingly cruel” in the same statement. “If this sentence is carried out, he will die a martyr behind bars,” she said.

Hong Kong leader John Lee said Lai’s sentence demonstrated the rule of law, citing his serious crimes.

“It’s bringing great satisfaction to the people,” he said in a statement.

In Beijing, China’s Foreign Ministry spokesperson Lin Jian said Lai is a Chinese citizen and called him a major planner and participant in a series of anti-China destabilizing activities in Hong Kong. He urged “relevant countries” to respect the rule of law in Hong Kong.

Judges ruled Lai was the mastermind

Lai founded Apple Daily, a now-defunct newspaper known for its critical reports against the governments in Hong Kong and Beijing. He was arrested in August 2020 under the security law that was used in a yearslong crackdown on many of Hong Kong’s leading activists.

In their ruling, three government-vetted judges wrote that the starting point of Lai’s sentence was increased because they found him to be the mastermind of the conspiracies. But they also reduced his penalty because they accepted that Lai’s age, health condition, and solitary confinement would cause his prison life to be more burdensome than that of other inmates.

“Lai was no doubt the mastermind of all three conspiracies charged and therefore he warrants a heavier sentence,” they said. “As regards the others, it is difficult to distinguish their relative culpability.”

They took into account that Lai is serving a prison term of five years and nine months in a separate fraud case and ruled that 18 years of Lai’s sentence in the security case should be served consecutively to that prison term.

Urania Chiu, lecturer in law at Oxford Brookes University, said the case is significant for its broad construction of seditious intent and application of the term “collusion with foreign forces” to certain activities by the media. The implication is particularly alarming for journalists and those working in academia, she said.

“Offering and publishing legitimate critiques of the state, which often involves engagement with international platforms and audiences, may now easily be construed as ‘collusion,’” Chiu said.

Lai has been in custody for more than five years. In January, Pang said Lai suffered health issues including heart palpitations, high blood pressure, and diabetes. The prosecution said a medical report noted Lai’s general health condition remained stable. The government said his solitary confinement was at Lai’s wish.

Co-defendants get reduced sentences

The former Apple Daily staffers and activists involved in Lai’s case entered guilty pleas, which helped reduce their sentences Monday. They earlier admitted to the prosecution charge that said they conspired with Lai to request foreign forces to impose sanctions or blockades, or engage in other hostile activities against Hong Kong or China.

The convicted journalists are publisher Cheung Kim-hung, associate publisher Chan Pui-man, editor-in-chief Ryan Law, executive editor-in-chief Lam Man-chung, executive editor-in-chief responsible for English news Fung Wai-kong, and editorial writer Yeung Ching-kee. They received prison terms ranging between six years and nine months, to 10 years.

The two activists, Andy Li and Chan Tsz-wah, were sentenced to six years and three months, and seven years and three months respectively.

The penalties for Cheung, Chan, and Yeung, alongside the two activists, were reduced in part because they served as prosecution witnesses and the judges said their evidence had “significantly” contributed to the conviction of Lai.

Before sunrise, dozens of people stood in line outside the court building to secure a seat in the courtroom. One of them was former Apple Daily employee Tammy Cheung.

“Whatever happens, it’s an end — at least we’ll know the outcome,” Cheung said before the sentence was delivered.

Case considered a blow to Hong Kong media

Lai founded Apple Daily in 1995, two years before the former British colony returned to Chinese rule. Its closure in 2021 shocked the local press scene. Hong Kong ranked 140th out of 180 territories in the press-freedom index compiled by media freedom organization Reporters Without Borders in 2025, far from its 18th place in 2002.

Steve Li, chief superintendent of the police force’s National Security Department, welcomed the heavy sentence on Lai. “Obviously, he has done nothing good for Hong Kong that could serve as a basis for his mitigation,” he told reporters.

The government said it will confiscate assets related to Lai’s crime.

Human Rights Watch’s Asia director Elaine Pearson said the harsh 20-year-sentence is effectively a death sentence, calling it cruel and unjust.

WASHINGTON — President Donald Trump wants to keep home prices high, bypassing calls to ramp up construction so people can afford what has been a ticket to the middle class.

Trump has instead argued for protecting existing owners who have watched the values of their homes climb. It’s a position that flies in the face of what many economists, the real estate industry, local officials, and apartment dwellers say is needed to fix a big chunk of America’s affordability problem.

“I don’t want to drive housing prices down. I want to drive housing prices up for people that own their homes, and they can be assured that’s what’s going to happen,” Trump told his cabinet on Jan. 29.

That approach could bolster the Republican president’s standing with older voters, a group that over time has been more likely to vote in midterm elections. Those races in November will determine whether Trump’s party can retain control of the House and Senate.

“You have a lot of people that have become wealthy in the last year because their house value has gone up,” Trump said. “And you know, when you get the housing — when you make it too easy and too cheap to buy houses — those values come down.”

But by catering to older baby boomers on housing, Trump risks alienating the younger voters who expanded his coalition in 2024 and helped him win a second term, and he could wade into a “generational war” in the midterms, said Brent Buchanan, whose polling firm Cygnal advises Republicans.

“The under-40 group is the most important right now — they are the ones who put Trump in the White House,” Buchanan said. “Their desire to show up in an election or not is going to make the difference in this election. If they feel that Donald Trump is taking care of the boomers at their expense, that is going to hurt Republicans.”

The logic in appealing to older voters

In the 2024 presidential election, 81% of Trump’s voters were homeowners, according to AP VoteCast data. This means many of his supporters already have mortgages with low rates or own their homes outright, possibly blunting the importance of housing as an issue.

Older voters tend to show up to vote more than do younger people, said Oscar Pocasangre, a senior data analyst at liberal think tank New America who has studied the age divide in U.S. politics. “However, appealing to older voters may prove to be a misguided policy if what’s needed to win is to expand the voting base,” Pocasangre said.

Before the 2026 elections, voters have consistently rated affordability as a top concern, and that is especially true for younger voters with regard to housing.

Booker Lightman, 30, a software engineer in Highlands Ranch, Colo., who identifies politically as a libertarian Republican, said the shortage of housing has been a leading problem in his state.

Lightman just closed on a home last month, and while he and his wife, Alice, were able to manage the cost, he said that the lack of construction is pushing people out of Colorado. “There’s just not enough housing supply,” he said.

Shay Hata, a real estate agent in the Chicago and Denver areas, said she handles about 100 to 150 transactions a year. But she sees the potential for a lot more. “We have a lack of inventory to the point where most properties, particularly in the suburbs, are getting between five and 20 offers,” she said, describing what she sees in the Chicago area.

New construction could help more people afford homes because in some cases, buyers qualify for discounted mortgage rates from the builders’ preferred lenders, Hata said. She called the current situation “very discouraging for buyers because they’re getting priced out of the market.”

But pending construction has fallen under Trump. Permits to build single-family homes have plunged 9.4% over the past 12 months in October, the most recent month available, to an annual rate of 876,000, according to the U.S. Census Bureau.

Trump’s other ideas to help people buy houses

Trump has not always been against increasing housing supply.

During the 2024 campaign, Trump’s team said he would create tax breaks for homebuyers, trim regulations on construction, open up federal land for housing developments, and make monthly payments more manageable by cutting mortgage rates. Advisers also claimed that housing stock would open up because of Trump’s push for mass deportations of people who were in the United States illegally.

As recently as October, Trump urged builders to ramp up construction. “They’re sitting on 2 Million empty lots, A RECORD. I’m asking Fannie Mae and Freddie Mac to get Big Homebuilders going and, by so doing, help restore the American Dream!” Trump posted on social media, referring to the government-backed lenders.

But more recently, he has been unequivocal on not wanting to pursue policies that would boost supply and lower prices.

In office, Trump has so far focused his housing policy on lobbying the Federal Reserve to cut its benchmark interest rates. He believes that would make mortgages more affordable, although critics say it could spur higher inflation. Trump announced that the two mortgage companies, which are under government conservatorship, would buy at least $200 billion in home loan securities in a bid to reduce rates.

Trump also wants Congress to ban large financial institutions from buying homes. But he has rejected suggestions for expanding rules to let buyers use 401(k) retirement accounts for down payments, telling reporters that he did not want people to take their money out of the stock market because it was doing so well.

There are signs that lawmakers in both parties see the benefits of taking steps to add houses before this year’s elections. There are efforts in the Senate and House to jump-start construction through the use of incentives to change zoning restrictions, among other policies.

One of the underlying challenges on affordability is that home prices have been generally rising faster than incomes for several years.

This makes it harder to save for down payments or upgrade to a nicer home. It also means that the places where people live increasingly double as their key financial asset, one that leaves many families looking moneyed on paper even if they are struggling with monthly bills.

There is another risk for Trump. If the economy grows this year, as he has promised, that could push up demand for houses — as well as their prices — making the affordability problem more pronounced, said Edward Pinto, a senior fellow at the American Enterprise Institute, a center-right think tank.

Pinto said construction of single-family homes would have to rise by 50% to 100% during the next three years for average home price gains to be flat — a sign, he said, that Trump’s fears about falling home prices were probably unwarranted.

“It’s very hard to crater home prices,” Pinto said.

TOKYO — The governing party of Prime Minister Sanae Takaichi secured a two-thirds supermajority in a key parliamentary election Sunday, Japanese media reported citing preliminary results, earning a landslide victory thanks to her popularity.

Takaichi, in a televised interview with public television network NHK following her sweeping victory, said she is now ready to pursue policies to make Japan strong and prosperous.

NHK, citing results of vote counts, said Takaichi’s Liberal Democratic Party, or LDP, alone secured 316 seats by early Monday, comfortably surpassing a 261-seat absolute majority in the 465-member lower house, the more powerful of Japan’s two-chamber parliament. That marks a record since the party’s foundation in 1955 and surpasses the previous record of 300 seats won in 1986 by late Prime Minister Yasuhiro Nakasone.

A smiling Takaichi placed a big red ribbon above each winner’s name on a signboard at the LDP’s headquarters, as accompanying party executives applauded.

Despite the lack of a majority in the other chamber, the upper house, the huge jump from the preelection share in the superior lower house would allow Takaichi to make progress on a right-wing agenda that aims to boost Japan’s economy and military capabilities as tensions grow with China and she tries to nurture ties with the United States.

Takaichi said she would try to gain support from the opposition while firmly pushing forward her policy goals.

“I will be flexible,” she said.

Takaichi is hugely popular, but the governing LDP, which has ruled Japan for most of the last seven decades, has struggled with funding and religious scandals in recent years. She called Sunday’s early election after only three months in office, hoping to turn that around while her popularity is high.

Popular leader

The ultraconservative Takaichi, who took office as Japan’s first female leader in October, pledged to “work, work, work,” and her style, which is seen as both playful and tough, has resonated with younger fans who say they weren’t previously interested in politics.

The opposition, despite the formation of a new centrist alliance and a rising far right, was too splintered to be a real challenger. The new opposition alliance of LDP’s former coalition partner, Buddhist-backed dovish Komeito, and the liberal-leaning Constitutional Democratic Party of Japan, is projected to sink to half of their combined preelection share of 167 seats.

Takaichi was betting with this election that her LDP party, together with its new partner, the Japan Innovation Party, would secure a majority.

Akihito Iwatake, a 53-year-old office worker, said he welcomed the big win by the LDP because he felt the party went too liberal in the past few years. “With Takaichi shifting things more toward the conservative side, I think that brought this positive result,” he said.

Takaichi’s policies

The prime minister wants to push forward a significant shift to the right in Japan’s security, immigration, and other policies. The LDP’s right-wing partner, JIP leader Hirofumi Yoshimura, has said his party will serve as an “accelerator” for this push.

Japan has recently seen far-right populists gain ground, such as the anti-globalist and surging nationalist party Sanseito. Exit polls projected a big gain for Sanseito.

The first major task for Takaichi when the lower house reconvenes in mid-February is to work on a budget bill, delayed by the election, to fund economic measures that address rising costs and sluggish wages.

Takaichi has pledged to revise security and defense policies by December to bolster Japan’s offensive military capabilities, lifting a ban on weapons exports and moving further away from the country’s postwar pacifist principles.

She has been pushing for tougher policies on foreigners, anti-espionage laws, and other measures that resonate with a far-right audience, but ones that experts say could undermine civil rights.

Takaichi also wants to increase defense spending in response to U.S. President Donald Trump’s pressure for Japan to loosen its purse strings.

She now has time to work on these policies, without an election until 2028.

Divisive policies

Though Takaichi said that she’s seeking to win support for policies seen as divisive in Japan, she largely avoided discussing ways to fund soaring military spending, how to fix diplomatic tension with China, and other issues.

Her rightward shift is unlikely to redirect Japan’s foreign policy and Takaichi is expected to maintain good relations with South Korea given shared concerns about threats from North Korea and China. But Seoul would worry about a Japanese attempt to revise the country’s pacifist constitution or to further build up military because of Japan’s wartime past, said Leif-Eric Easley, professor of international studies at Ewha Womans University in Seoul.

In her campaign speeches, Takaichi enthusiastically talked about the need for proactive government spending to fund “crisis management investment and growth,” such as measures to strengthen economic security, technology, and other industries. Takaichi also seeks to push tougher measures on immigration, including stricter requirements for foreign property owners and a cap on foreign residents.

Sunday’s election “underscores a problematic trend in Japanese politics in which political survival takes priority over substantive policy outcomes,” said Masato Kamikubo, a Ritsumeikan University politics professor. “Whenever the government attempts necessary but unpopular reforms … the next election looms.”

Impact of snow

Sunday’s vote coincided with fresh snowfall across the country, including in Tokyo. Record snowfall in northern Japan over the past few weeks blocked roads and was blamed for dozens of deaths nationwide.

DUBAI, United Arab Emirates — Iran sentenced Nobel Peace Prize laureate Narges Mohammadi to over seven more years in prison after she began a hunger strike, supporters said Sunday, as Tehran cracks down on all dissent following nationwide protests and the deaths of thousands at the hands of security forces.

The new convictions against Mohammadi come as Iran tries to negotiate with the United States over its nuclear program to avert a threatened military strike by U.S. President Donald Trump. Iran’s top diplomat insisted Sunday that Tehran’s strength came from its ability to “say no to the great powers,” striking a maximalist position just after negotiations in Oman with the U.S.

Mohammadi’s supporters cited her lawyer, who spoke to Mohammadi. The lawyer, Mostafa Nili, confirmed the sentence on X, saying it had been handed down Saturday by a Revolutionary Court in the city of Mashhad. Such courts typically issue verdicts with little or no opportunity for defendants to contest their charges.

“She has been sentenced to six years in prison for ‘gathering and collusion’ and one and a half years for propaganda and two-year travel ban,” he wrote. She received another two years of internal exile to the city of Khosf, some 460 miles southeast of Tehran, the capital, the lawyer added.

Iran did not immediately acknowledge the sentence. Supporters say Mohammadi has been on a hunger strike since Feb. 2. She had been arrested in December at a ceremony honoring Khosrow Alikordi, a 46-year-old Iranian lawyer and human rights advocate who had been based in Mashhad. Footage from the demonstration showed her shouting, demanding justice for Alikordi and others.

Mohammadi a symbol for Iranian activists

Supporters had warned for months before her December arrest that Mohammadi, 53, was at risk of being put back into prison after she received a furlough in December 2024 over medical concerns.

While that was to be only three weeks, Mohammadi’s time out of prison lengthened, possibly as activists and Western powers pushed Iran to keep her free. She remained out even during the 12-day war in June between Iran and Israel.

Mohammadi still kept up her activism with public protests and international media appearances, including even demonstrating at one point in front of Tehran’s notorious Evin prison, where she had been held.

Mohammadi had been serving 13 years and nine months on charges of collusion against state security and propaganda against Iran’s government. She also had backed the nationwide protests sparked by the 2022 death of Mahsa Amini, which have seen women openly defy the government by not wearing the hijab.

Mohammadi suffered multiple heart attacks while imprisoned before undergoing emergency surgery in 2022, her supporters say. Her lawyer in late 2024 revealed doctors had found a bone lesion that they feared could be cancerous that later was removed.

“Considering her illnesses, it is expected that she will be temporarily released on bail so that she can receive treatment,” Nili wrote.

However, Iranian officials have been signaling a harder line against all dissent since the demonstrations. Speaking on Sunday, Iranian judiciary chief Gholamhossein Mohseni-Ejei made comments suggesting harsh prison sentences awaited many.

“Look at some individuals who once were with the revolution and accompanied the revolution,” he said. ”Today, what they are saying, what they are writing, what statements they issue, they are unfortunate, they are forlorn (and) they will face damage.”

Foreign minister strikes hard-line tone

The news about Mohammadi came as Foreign Minister Abbas Araghchi, speaking to diplomats at a summit in Tehran, signaled that Iran would stick to its position that it must be able to enrich uranium — a major point of contention with Trump, who bombed Iranian atomic sites in June during the 12-day Iran-Israel war.

Israeli Prime Minister Benjamin Netanyahu is expected to travel to Washington this week, with Iran expected to be the major subject of discussion, his office said.

While Iranian President Masoud Pezeshkian praised the talks Friday in Oman with the Americans as “a step forward,” Araghchi’s remarks show the challenge ahead. Already, the U.S. moved the aircraft carrier USS Abraham Lincoln, other ships, and warplanes to the Middle East to pressure Iran into an agreement and have the firepower necessary to strike the Islamic Republic should Trump choose to do so.

“I believe the secret of the Islamic Republic of Iran’s power lies in its ability to stand against bullying, domination, and pressures from others,” Araghchi said. ”They fear our atomic bomb, while we are not pursuing an atomic bomb. Our atomic bomb is the power to say no to the great powers. The secret of the Islamic Republic’s power is in the power to say no to the powers.”

‘Atomic bomb’ as rhetorical device

Araghchi’s choice to explicitly use an “atomic bomb” as a rhetorical device likely wasn’t accidental. While Iran has long maintained its nuclear program is peaceful, the West and the International Atomic Energy Agency say Tehran had an organized military program to seek the bomb up until 2003.

Iran had been enriching uranium up to 60% purity, a short, technical step to weapons-grade levels of 90%, the only nonweapons state to do so. Iranian officials in recent years had also been increasingly threatening that the Islamic Republic could seek the bomb, even while its diplomats have pointed to Iranian Supreme Leader Ayatollah Ali Khamenei’s preachings as a binding fatwa, or religious edict, that Iran wouldn’t build one.

Pezeshkian, who ordered Araghchi to pursue talks with the Americans after likely getting Khamenei’s blessing, also wrote on X on Sunday about the talks.

“The Iran-U.S. talks, held through the follow-up efforts of friendly governments in the region, were a step forward,” the president wrote. “Dialogue has always been our strategy for peaceful resolution. … The Iranian nation has always responded to respect with respect, but it does not tolerate the language of force.”

It remains unclear when and where, or if, there will be a second round of talks. Trump, after the talks Friday, offered few details but said: “Iran looks like they want to make a deal very badly — as they should.”

MUSCAT, Oman — Iran and the United States held indirect talks in Oman on Friday, negotiations that appeared to return to the starting point on how to approach discussions over Tehran’s nuclear program. But for the first time, America brought its top military commander in the Middle East to the table.

The presence of U.S. Navy Adm. Brad Cooper, the head of the American military’s Central Command, in his dress uniform at the talks in Muscat, the Omani capital, served as a reminder that the aircraft carrier USS Abraham Lincoln and other warships were now off the coast of Iran in the Arabian Sea.

President Donald Trump said the United States had “very good” talks on Iran and said more were planned for early next week. But he kept up the pressure, warning that if the country didn’t make a deal over its nuclear program, “the consequences are very steep.”

Trump has repeatedly threatened to use force to compel Iran to reach a deal on the program after earlier sending the carrier to the region over Tehran’s bloody crackdown on nationwide protests that killed thousands and saw tens of thousands of others detained in the Islamic Republic.

Gulf Arab nations fear an attack could spark a regional war that would drag them in as well.

That threat is real — U.S. forces shot down an Iranian drone near the Lincoln and Iran attempted to stop a U.S.-flagged ship in the Strait of Hormuz just days before Friday’s talks in this sultanate on the eastern edge of the Arabian Peninsula.

“We did note that nuclear talks and the resolution of the main issues must take place in a calm atmosphere, without tension and without threats,” Iranian Foreign Minister Abbas Araghchi later told journalists.

“The prerequisite for any dialogue is refraining from threats and pressure,” he added. “We stated this point explicitly today as well, and we expect it to be observed so that the possibility of continuing the talks exists.”

The U.S., represented by U.S. Mideast special envoy Steve Witkoff and Jared Kushner, Trump’s son-in-law, did not immediately comment on the talks. Araghchi said diplomats would return to their capitals, signaling this round of negotiations was over.

On Friday evening, in a display of force, the U.S. military published photos on X of the Lincoln carrier group sailing in the Arabian Sea with aircraft flying overhead, with the message “Peace through Strength!” The The carrier and accompanying warships arrived in the Middle East at the end of January as Trump threatened attacks on Iran over the killing of protesters.

Iran’s top diplomat offers a positive note

Araghchi offered cautious optimism as he spoke in a live interview from Muscat on Iranian state television. He described Friday’s talks as taking place over multiple rounds and said that they were focused primarily on finding a framework for further negotiations.

“We will hold consultations with our capitals regarding the next steps, and the results will be conveyed to Oman’s foreign minister,” Araghchi said.

“The mistrust that has developed is a serious challenge facing the negotiations,” Araghchi said. “We must first address this issue, and then enter into the next level of negotiations.”

Omani Foreign Minister Badr al-Busaidi, who oversaw multiple rounds of negotiations before Israel launched its 12-day war on Iran in June, called the talks “useful to clarify both the Iranian and American thinking and identify areas for possible progress.”

Still, Oman described the talks as a means to find “the requisite foundations for the resumption of both diplomatic and technical negotiations” rather than a step toward reaching a nuclear deal or easing tensions.

The talks had initially been expected to take place in Turkey in a format that would have included regional countries as well, and would have included topics like Tehran’s ballistic missile program — something Iran apparently rejected in favor of focusing only on its nuclear program.

Before the June war, Iran had been enriching uranium up to 60% purity, a short, technical step away from weapons-grade levels. The U.N. nuclear watchdog — International Atomic Energy Agency — had said Iran was the only country in the world to enrich to that level that wasn’t armed with the bomb.

Iran has been refusing requests by the IAEA to inspect the sites bombed in the June war, raising the concerns of nonproliferation experts. Even before that, Iran has restricted IAEA inspections since Trump’s decision in 2018 to unilaterally withdraw America from Iran’s 2015 nuclear deal with world powers.

Omani palace hosts talks

Friday’s talks saw in-person meetings at a palace near Muscat’s international airport, used by Oman in earlier talks Iran-U.S. talks in 2025. Associated Press journalists saw Iranian officials first at the palace and later returning to their hotel before the Americans came separately.

It remains unclear just what terms Iran is willing to negotiate at the talks. Tehran has maintained that these talks will only be on its nuclear program. However, the Al Jazeera satellite news network reported that diplomats from Egypt, Turkey, and Qatar offered Iran a proposal in which Tehran would halt enrichment for three years, send its highly enriched uranium out of the country and pledge “not initiate the use of ballistic missiles.”

Russia had signaled it would take the uranium, but Iran has said ending the program or shipping out the uranium were nonstarters.

U.S. Secretary of State Marco Rubio said on Wednesday that the talks needed to include all those issues.

“I’m not sure you can reach a deal with these guys, but we’re going to try to find out,” he said.

The U.S. slaps new sanctions on Iran’s energy sector

Shortly after Friday’s talks, the Treasury and the U.S. State Department announced a new round of sanctions on Iran targeting its energy sector, imposing penalties, including freezes on assets in U.S. jurisdictions, on 14 oil tankers in a so-called “shadow fleet” that the U.S. says are used to try to evade sanctions, as well as on 15 trading firms and two business executives.

“Time and time again, the Iranian government has prioritized its destabilizing behavior over the safety and security of its own citizens, as demonstrated by the regime’s mass murder of peaceful protestors,” the State Department said. “The United States will continue to act against the network of shippers and traders involved in the transport and acquisition of Iranian crude oil, petroleum products, and petrochemical products, which constitutes the regime’s primary source of income.”

In the past month, the U.S. has sanctioned Iran’s interior minister,the secretary of the Supreme Council for National Security, and several other leaders involved in Iran’s deadly crackdown against last month’s protests.