Saudi Arabia Shoots Down Iranian Drones Targeting Oil Facilities as Ceasefire Hopes Fade

Mediators have made "significant" progress in efforts to stop the war between the United States and Iran, two regional officials said Monday [204718]. Qatar and Pakistan are leading talks to get both sides back to a ceasefire deal after three days with no attacks from either side [204718]. The pause follows two weeks of heavy bombing that began when Iran fired at ships in the Strait of Hormuz, a key waterway for global oil [204718].

The United States held fire over the weekend following 13 days of attacks, with Washington's UN envoy saying the move was intended to "give talks some space" [204646]. Iran also stopped attacks, its army spokesperson told state TV on Sunday [204718]. However, Iran on Monday rejected peace talks, vowing to continue its defense "for as long as our interests require" [204723]. Esmaeil Baghaei, the Iranian foreign ministry spokesperson, stated during a televised press conference: "We will never allow the United States to determine the timing of war" [204723].

The drone attacks on Saudi Arabia did not cause major damage, but they raise tensions in a region already on edge [204741]. Oil prices dropped by about 6% on Monday as traders bet on a potential diplomatic breakthrough, though analysts warn that risks to shipping through the Strait of Hormuz and the Bab el-Mandeb Strait still linger [204699].

Iran announced on Sunday that it had made progress in talks with Oman regarding the management of the Strait of Hormuz [203839]. Foreign ministry spokesman Esmaeil Baqaei stated that several rounds of negotiations were held, though he did not provide specific details on the outcomes [203839]. Shipping traffic in the Strait of Hormuz is at a three-week low, with no new attacks confirmed in the past 72 hours [204718].

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