Iran's Supreme Leader has authorized negotiators to keep talking with the US, a hopeful sign even as Israel's Netanyahu pushes Trump to resume strikes.

• Iran's government now has authority to negotiate, and a draft deal to end the conflict is being circulated for feedback, with Iran offering to open the Strait of Hormuz within two days instead of seven.
• Oil prices dropped sharply on the news, a sign markets see this as a step toward de-escalation rather than more fighting.
• Netanyahu is pressing Trump to strike Iran again right after the US midterm elections, while Trump appears to prefer letting talks play out — with his own defense officials split on which way to push him.
• Talk of a US nuclear strike on a deeply buried Iranian nuclear site is circulating, but Trump has repeatedly said he won't use nuclear weapons, and there's no real evidence a strike is imminent.
• Attacks on tankers in the Gulf have ticked up recently, a reminder that tensions on the ground remain real even as diplomacy moves forward.

Outlook: A deal looks increasingly likely over time, though probably not before the election, with oil prices and ship attacks in the Gulf the key signals to watch next.