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US Raises Counterintelligence Alert on Israel as Strains Emerge Over Middle East War
Tensions between Washington and Tel Aviv have intensified amid the ongoing war with Iran and wider instability in the Middle East, with new reports indicating that the Pentagon has significantly escalated its counterintelligence posture toward Israel.
According to multiple US media outlets, the Pentagon’s Defense Intelligence Agency (DIA) has placed Israel on its highest level of counterintelligence concern, classifying it as a “critical” priority. The designation reportedly follows growing unease within US security circles over alleged intelligence-related activities linked to Israeli operations targeting American officials.
The reports suggest that concerns centre on the possibility that Israeli intelligence efforts may have attempted to gather sensitive information about senior figures in the Trump administration. Individuals named in media coverage include US Middle East envoy Steve Witkoff and Pentagon policy chief Elbridge Colby, who are said to be involved in internal discussions on regional conflict strategy.
The New York Times reported that US agencies are reviewing whether Israeli operatives sought insight into American decision-making processes regarding the war with Iran and broader regional security policy. However, the allegations have not been independently verified.
Israel has strongly rejected the claims. An Israeli Embassy spokesperson in Washington described reports suggesting Israeli surveillance of US officials as “completely false,” stressing that Israeli intelligence services operate exclusively against hostile actors and not allied nations. The embassy further denied any efforts to collect intelligence on US government personnel.
US officials offered mixed responses. The Pentagon declined to comment on the matter, while a White House official dismissed the reporting as inaccurate, arguing that it was based on unnamed sources without direct knowledge of intelligence operations.
The developments come at a sensitive moment for US–Israel relations, which have faced increasing pressure over military operations in Lebanon and ongoing strikes linked to the broader Iran conflict.
Separately, US President Donald Trump acknowledged tensions with Israeli Prime Minister Benjamin Netanyahu, confirming that he used strong language during a recent phone call in which he expressed frustration over Israel’s continued military actions in Lebanon. Trump said he was “a little bit perturbed” by the situation, though he maintained that cooperation between the two countries remained strong.
The call follows continued Israeli strikes in southern Lebanon despite a US-brokered ceasefire agreement. Lebanese authorities reported multiple casualties in recent attacks, including at least five deaths and more than 20 injuries in separate incidents.
Despite reported disagreements, Trump emphasised that both governments continue to operate under wartime pressures and insisted that strategic coordination between Washington and Jerusalem has not broken down, even as diplomatic strains become more visible.
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Iran Says Hormuz Can Reopen Within Seven Days as Oil Exports Come Under Pressure
Iran’s military said it retained full control of the Strait of Hormuz on Monday, while Foreign Minister Abbas Araghchi said the strategic waterway could be fully reopened within seven days if Tehran’s conditions were met and hostile measures against the country were lifted.
The statements came as Iran faced growing economic pressure, with the rial falling to record lows, Oil Minister Mohsen Paknejad resigning and the United States claiming that Tehran had not loaded any crude onto tankers during September.
Brigadier General Aziz Jafari, commander of Iran’s Khatam al-Anbiya Joint Air Defence Headquarters, said all movements through the Strait remained under the control of the Iranian armed forces despite changes in US tactics.
“All movements (in Hormuz) are under the control of the armed forces of the Islamic Republic,” Jafari said.
US Treasury Secretary Scott Bessent said on Thursday that Iran had not loaded crude oil onto tankers during September, arguing that the Trump administration was targeting Tehran’s main source of revenue.
Iranian President Masoud Pezeshkian acknowledged in August that restrictions were disrupting oil exports, saying the country had previously been able to sell oil but was now unable to do so at the same level.
Paknejad’s resignation was officially attributed to family and personal matters. However, his departure came amid speculation about the impact of reduced oil exports on government finances. Before his resignation was announced, Paknejad said in a video carried by Iranian media that revenue from oil already sold would be collected and that the process would continue.
The acting oil minister has pledged to maximise production and maintain exports through new strategies.
Despite pressure on Iranian exports, oil shipments from other parts of the region remained high. Ship-tracking company Kpler estimated crude exports from the region excluding Iran at between 19.5 million and 22.5 million barrels per day during the final week of September, compared with a pre-war regional average of about 18 million barrels per day.
Iran’s currency has also come under severe pressure. The euro rose above 300,000 tomans on the informal market, while the US dollar reached 270,000 tomans, more than double its level of about 135,000 tomans at the beginning of the year. One toman is equal to 10 rials.
The UK Maritime Trade Operations agency reported at least one attack each day in the Strait of Hormuz or the Gulf of Aden since October 2.
Araghchi told foreign ambassadors in Tehran that the conflict could not be resolved militarily and called for negotiations based on fairness. He warned that any renewed military confrontation would trigger a stronger Iranian response.
Parliament Speaker Mohammad Bagher Ghalibaf said Tehran had received US proposals through intermediaries but rejected what he described as one-sided demands.
He said the Strait would remain closed until Iran’s seven conditions, based on the Islamabad memorandum, were met.
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