Here’s a brief recap of the key developments in the Middle East war that occurred over the weekend, which are expected to have a significant impact on markets in the upcoming week.

• Earlier Sunday, Iran stated that it’s awaiting a definitive US response to a seven-day proposal for reopening the strait and other demands it has put on the table, and won’t soften its conditions, CNBC reported.
• Tehran is sticking to its position that it would only reopen the crucial waterway if its conditions are met, while a senior Iranian military leader stressed his country’s readiness to continue fighting.
• “Our conditions are clear; any progress toward the opening of the Strait of Hormuz is contingent upon the fulfillment of these conditions, and we will not back down from them,” said Iranian Foreign Minister Abbas Araghchi.
• US President Donald Trump said on Sunday that he expects talks with Iran to resume this week, even after rejecting the latest Iranian proposal to reopen the Strait of Hormuz, Axios reported.
• US Ambassador to the UN Mike Waltz stated that Trump rejected Iran’s latest proposal because the Islamic Republic wanted sanctions relief and access to billions in frozen assets before negotiating an end to its nuclear programme.
• Saudi Arabia’s capital came under attack from Houthi militants in Yemen on Saturday. Saudi-backed coalition forces in Yemen said air defenses intercepted two drones launched by the Houthis toward Riyadh, as well as a ballistic missile targeting the southern border area of Khamis Mushait.