Russian envoy says visit to Iran aimed at averting return to war

Oil prices were down early Monday, with Brent crude, the international standard, falling 2.5% to $107.16 per barrel and benchmark U.S. crude dropping 2.2% to $96.84 per barrel.

The prices fell after President Trump late Friday signed an executive order to put new U.S. sanctions against Russia on hold just days before they were to come into effect, drawing disappointment from Ukraine, with the move likely resulting in more energy exports from Russia.

Mr. Trump's decision came not long after he said earlier this month he had reached a diesel deal with Russia in an attempt to bring down elevated U.S. fuel prices ahead of the Nov. 3 midterm elections.

But despite Mr. Trump's controversial efforts to ease energy costs for Americans, oil prices have remained much higher compared to before the Iran war, due in large part to the ongoing risks to the supply chain caused by the crisis in the Middle East.

On Friday the price of Brent crude hit nearly $110 a barrel, its highest level since mid-May.

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A tug boat traveling near the Strait of Hormuz was struck by two unknown projectiles, a British maritime monitoring agency said Sunday.

The U.K. navy's Maritime Trade Operations center (UKMTO) said in a statement that a tugboat traveling southbound off the coast of the United Arab Emirates "reported being struck by two unknown projectiles."

"The tug has sustained damage but is continuing on its route," the agency said, "one minor casualty has been reported."

Last week saw 10 attacks on commercial vessels in and near the strait, according to the UKMTO, which said October has already become the worst month for attacks on shipping in the strait since the early days of the war in March. 

The U.S. issued a security alert on Monday urging Americans in the Middle East to "exercise heightened vigilance."

"Iranian-supported Houthis have engaged in hostilities against Saudi Arabia, including attacks on civilian airports and other critical infrastructure resulting in civilian casualties and severe travel disruptions," the statement said.

It added that hostilities have the potential to escalate rapidly and that groups backed by Iran may target U.S. interests overseas "or at locations associated with the United States and Americans throughout the world."

At least 20 people, including one American, were killed in one week in October when Houthi rebels attacked Saudi airports.

Russian Foreign Minister Sergey Lavrov was expected to pay his first visit to Iran on Monday since the U.S. and Israel sparked the ongoing war with the Islamic Republic by launching joint strikes on Feb. 28.

Iranian Foreign Ministry spokesman Esmaeil Baqaei said Sunday that the two sides would discuss "regional and international developments," while Lavrov said his visit was "aimed at preventing the return of a large-scale war."

Russian President Vladimir Putin told his Iranian counterpart in early October that Moscow was prepared to contribute to mediation efforts.

Iran presented a seven-day ceasefire proposal in late September that called for an end to the U.S. naval blockade of Iranian ports, the lifting of sanctions on Iranian oil, the reopening of the Strait of Hormuz and a return to direct negotiations on Tehran's nuclear program. President Trump rejected the proposal, which Iran says remains on the table.

CBS/AFP

Conflict raged between the Houthis and the Saudi-led military coalition fighting the Iran-backed rebel group on Sunday, as both sides traded strikes. 

In Riyadh, where intensifying violence has disrupted life for residents, the landmark Kingdom Centre skyscraper ordered "mandatory" remote working for office tenants until further notice. Although a reason for the order wasn't provided, it followed a security alert and two drone interceptions around the capital city, in addition to a number of attacks by Houthis on Saudi targets in recent weeks.

Meanwhile, the Saudi-led coalition, which backs the internationally-recognized government in war-wracked Yemen, has launched repeated air raids on regions of the country that Houthis control. One alleged Saudi airstrike in northern Yemen  killed at least nine people and wounded 16 others on Sunday, the Houthis' Saba news agency reported.

The coalition said Sunday that two pilots were killed when their helicopter crashed in Najran, near the Yemen border, blaming a "technical malfunction" for the incident. The Houthis said they "downed an Apache helicopter belonging to the Saudi enemy" in the same area.

CBS/AFP

Iran's foreign minister said Sunday that Tehran's conditions to reopen the Strait of Hormuz have not changed, but that its proposal for a limited ceasefire with the U.S. to reopen the vital waterway remains on the table.

Foreign Minister Abbas Araghchi told Iran's semi-official Tasnim news agency on Sunday that Tehran is still reviewing "comments" from the U.S. on the Iranian proposal for a seven-day ceasefire that was first presented in September, but rejected by President Trump.

"If they comply with our conditions, the Strait of Hormuz will reopen on the sixth day, and negotiations will begin on the seventh day," Araghchi said, referring to the timeline proposed by Iran, which calls for the U.S. to lift its naval blockade on Iranian ports and to ease sanctions on the country, among other concessions. 

"Our conditions are fair, and if the United States is willing to reopen the Strait of Hormuz, it can meet them within a few days," Araghchi said.