U.S.-Iran tensions continue as optimism grows for possible peace deal

A mixed picture is emerging in the Middle East as new military confrontations unfold alongside growing hopes for a possible agreement between the United States and Iran.

(NBC)- A mixed picture is emerging in the Middle East as new military confrontations unfold alongside growing hopes for a possible agreement between the United States and Iran.

U.S. Central Command says an American fighter jet fired on and disabled an Iranian oil tanker after the vessel allegedly ignored warnings and attempted to bypass the U.S. blockade of Iranian ports. President Donald Trump defended the blockade, describing it as “a wall of steel” that no ships can pass through. Despite the latest confrontation, financial markets rallied following a Wall Street Journal report describing a possible 14-point U.S. proposal aimed at ending the conflict. The report cited people familiar with the negotiations.

Iranian state media later quoted a Foreign Ministry spokesperson saying the proposal is currently under review.

“We’ve had very good talks over the last 24 hours, and it’s very possible that we’ll make a deal,” Trump said.

New reporting from NBC News also revealed that Trump paused “Project Freedom” — a U.S. military effort designed to guide commercial ships through the Strait of Hormuz — after pushback from a major U.S. ally. According to two U.S. officials, Saudi Arabia temporarily suspended the American military’s ability to use its bases and airspace because leaders there were frustrated they were not informed ahead of time about the operation.

Meanwhile, Secretary of State Marco Rubio traveled to Rome, where he met with Pope Leo XIV amid growing tensions between the White House and the Vatican over the war. Trump recently criticized the pope after the pontiff publicly called for peace and dialogue rather than military escalation.

“Iran cannot have a nuclear weapon,” Trump said, adding that the pope appeared to disagree.

Pope Leo rejected that characterization, saying the Catholic Church has consistently opposed nuclear weapons.

“I always believe that it’s much better to enter into dialogue than to look for arms,” the pope said.

Rubio denied that his visit to the Vatican was intended to repair strained relations between the Trump administration and church leadership.