This blog is closing now but our live coverage of the US-Israel war on Iran continues in a new blog here, including a recap of the latest developments. Thanks for following along.
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The US-Israeli attacks on Iran continue to spook global markets and force countries into adopting new energy saving measures.
The South Korean president, Lee Jae Myung, on Tuesday called for a nationwide energy-saving campaign over risks to oil and gas supplies from the war, saying public institutions would cut back on their use of passenger cars.
The energy minister, Kim Sung-whan, told a cabinet meeting that private-sector vehicle curbs were voluntary for now, but could be reviewed if the energy alert level increased.
The government would ask the top 50 oil-consuming businesses to cut use, and encourage staggered commuting hours and other conservation steps, he said.
Kim also said Seoul would restart five nuclear reactors by May, ease restrictions on coal plants and expand renewable energy to reduce longer-term dependence on LNG.
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Iran state media is reportedly saying a “new wave of missiles” has been fired at Israel.
We’ll bring you more on this soon.
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In Australia, the number of petrol stations running out of fuel continues to climb as the Middle East war drags on, with at least 184 dry across the country’s three most populous states.
On Tuesday, 51 service stations in the state of New South Wales were out of fuel and 164 out of diesel, compared with 38 and 131 respectively the previous day, premier Chris Minns said.
In the state of Victoria, 101 service stations were out of petrol and 83 were without diesel, with the state’s energy minister saying demand had increased as much as 400% in some areas, Australian Associated Press reports.
In Queensland, 32 stations were out of regular unleaded and 47 stations had no diesel.
The rising shortages come as the Australian government’s fuel supply taskforce is to meet for the first time on Tuesday.
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Shares rally and oil rebounds as Trump extends Iran ultimatum
Asian stocks rallied, oil prices bounced back and the US dollar wobbled on Tuesday after Donald Trump postponed the bombing of Iran’s power grid, allaying fear of a deeper energy shock.
Reuters reports that markets went on a rollercoaster ride at the start of this week after Trump added five days to his Saturday ultimatum for Iran to reopen the strait of Hormuz within 48 hours, citing productive talks with unidentified Iranian officials, which Tehran has denied.
“It’s a negotiating tactic ... I don’t think that the US administration wants to see oil at $150 because they themselves provoked it,” said Rajeev De Mello, chief investment officer at GAMA Asset Management.
Traders were quick to react to the reversal on Monday, sending crude futures tumbling and shares surging, while the dollar and government bond yields fell.
Most of the movement carried over to the Asian trading session on Tuesday, with MSCI’s broadest index of Asia-Pacific shares outside Japan rising 1.3%, while shares in Australia were up 0.7%.
Japan’s Nikkei advanced more than 2%, reversing most of Monday’s 3.5% decline.
Oil prices, meanwhile, edged higher on Tuesday after sliding 10% in the previous session. Brent crude futures were up 1% at $100.94 a barrel, while US crude rose 1.9% to $89.84.
Still, movement was highly volatile. “Markets are not out of the woods,” said Chris Weston, head of research at Pepperstone.
Price action could remain choppy into Friday’s revised deadline ... The key question is whether participants see this as a genuine extension that brings a deal closer, or simply a delay that prolongs uncertainty.
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Japan to soon start releasing oil from joint reserves – PM
Japan plans to begin releasing oil from joint stockpiles held by producing nations in the country by the end of March, prime minister Sanae Takaichi has said.
Japan started releasing 15 days’ worth of private-sector oil inventories last week, Reuters reports, and Takaichi said in post on X on Tuesday that the country would tap a month’s worth of crude from the state reserves from Thursday.
The moves come in response to the blocking of oil and natural gas shipments from the Middle East amid the war on Iran.
Japan’s contribution to a record oil stockpile release coordinated by the International Energy Agency will total nearly 80m barrels, mainly of crude oil, according to the agency.
In addition, about 13m barrels – or a total of seven days of consumption – are jointly held in Japan by Saudi Arabia, the United Arab Emirates and Kuwait, and Tokyo has priority access to that supply in case of emergencies.
Takaichi said in the post:
We began releasing privately held reserves on March 16, and will begin releasing national reserves from the 26th.
Furthermore, releases from jointly held stockpiles with oil-producing countries are also scheduled to begin later in March.
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From a shop owner in India to a semi-retired teacher in the UK and a community worker in Australia, rising fuel prices are forcing people to ration oil usage.
As Jane Clinton writes in this feature, many people responded to an online callout from the Guardian on their heating oil and fuel usage since the start of the Iran war.
People shared how they were dealing with the price increase and scarcity of fuel. Some have cut back on driving, using cars for essential journeys only, cycling where possible and using public transport.
Others in cooler climes have stopped or drastically limited the use of heating oil because of “skyrocketing prices” and have been making do with heating just one room, burning wood and layering up clothing.
Some have cancelled holidays as they believe it is inappropriate to take long road trips with the heightened demand for fuel.
Many shared their anger at the conflict, while some people spoke of their relief that they had an EV and solar panels, and what they felt was a semblance of “control” over their fuel sources.
But many said they had no choice but to use their car to go to work or get around as there was either little or no public transport available. They have had to find other ways to cut back to afford fuel.
The full piece is here:
Ursula von der Leyen also said Iran’s attempts to block vessels in the strait of Hormuz and its attacks on unarmed commercial vessels in the Gulf “must be condemned”.
Standing beside Australian’s prime minster Anthony Albanese in the capital, the EC president said:
The recent attacks by Iran on unarmed commercial vessels in the Gulf, attacks on civilian infrastructure, including oil and gas installations, and the de facto closure of the strait of Hormuz by Iranian forces is unacceptable and must be condemned.
Von der Leyen says global energy situation 'critical'
European Commission president Ursula von der Leyen has said it is time for negotiations with Iran to take place to end the war in the Middle East.
Speaking in Australia at the conclusion of a new free-trade agreement between the EU and Australia, she said:
The situation is critical for the energy supply allies worldwide.
We all feel the knock-on effects on gas and oil prices, our businesses and our societies, but it is of utmost importance that we come to a solution that is negotiated, and this puts an end to the hostilities that we see in the Middle East.
Asked what role European nations will have in the strait of Hormuz, including after it opens, von der Leyen said EU leaders had said they could engage in an operation once hostilities end.
So the leaders in the European Union have been very clear that at the when the hostilities end, they could envisage an operation, a mission. But of course, it is not for me to judge on their decision to provide the necessary capabilities in the strait of Hormuz.
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Strike in Iraq kills seven fighters – report
An attack in western Iraq killed seven fighters from the former paramilitary coalition Hashed al-Shaabi on Tuesday, a source from the group has said, blaming the US for the strike.
The AFP news agency is quoting the source as saying seven fighters from the alliance – also known as the Popular Mobilisation Forces (PMF) and now part of the regular armed forces – were killed and 13 wounded “in a US strike” targeting their base in western Anbar province.
The bombing occurred during a commanders’ meeting and some people were “still trapped under rubble”, they said.
A security official told AFP the wounded were being treated at a hospital.
A PMF statement condemned the strike, saying it had killed a commander and a number of fighters.
Since the start of the US-Israel war on Iran, Baghdad has repeatedly denounced attacks on the Hashed al-Shaabi, which also includes brigades belonging to Iran-backed groups.
Pro-Iran armed groups have claimed responsibility for attacks on US interests in Iraq and across the region, while strikes have also targeted these groups.
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Analysis: Trump’s ‘very good’ talks with Iran buy him time with oil and energy markets
There have been so many abortive rounds of diplomacy between the US and Iran that it was hardly a surprise Donald Trump’s claims of “very good” talks with Tehran initially provoked disbelief, especially after Iran denied that any negotiations were taking place at all.
Nonetheless, standing beside Air Force One, Trump did his best to sell the sudden detente with little detail as a US ultimatum to bomb Iran’s power plants loomed unless Tehran opened up the strait of Hormuz.
It was lost on few that the sudden about-face came just hours before US markets were to open for what promised to be another punishing round of trading on Monday.
Any US-Iran negotiations face an uphill battle, but the latest appear to be led by Pakistan after Washington burned through many other regional mediators.
See the full analysis here:
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The Israeli military has sent rescue teams to a damaged building in northern Israel after two rounds of Iranian missile fire early on Tuesday.
After the first launch, the military said it had sent “search and rescue forces to operate at a scene in northern Israel where reports of an impact have been received”.
The Magen David Adom emergency services released video of a damaged building, with a smashed area on an upper floor and rubble spread across the ground, AFP is reporting.
The medics said they were providing treatment to a man in his 30s who suffered mild injuries after stepping on shrapnel, but there were no other casualty reports.
A loud explosion was heard in Jerusalem minutes after the second missile alert, as just mentioned. But the military said people were now cleared to leave their shelters and medics reported no casualties.
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A loud explosion rang out over Jerusalem early on Tuesday after the Israeli military said it had detected another Iranian missile launch – the second of the day.
AFP reporters in the city heard the blast minutes after the military said it had detected missile launches from Iran and was working to intercept the threat.
Israeli military says it has captured two Hezbollah fighters
The Israeli military claims to have captured two members of Hezbollah in southern Lebanon, while it struck Beirut’s southern suburbs on Monday in the first attack on the Iran-backed militia’s stronghold in days.
An earlier Israeli strike had hit the predominantly Christian area of Hazmieh near Beirut, with Israel saying it targeted a member of the Iranian Revolutionary Guards’ foreign operations arm, Agence France-Presse is reporting.
AFPTV’s live broadcast showed a cloud of smoke over the capital’s southern suburbs, and Lebanon’s state-run National News Agency reported at least five strikes on the area.
The Israeli military also announced it was “striking Hezbollah infrastructure in Beirut” after having called on residents to leave the southern suburbs beforehand.
The Israeli army said in a statement on Monday that “during an activity to locate weapons in southern Lebanon, [Israeli] troops identified several armed Hezbollah Radwan Force terrorists who were planning to fire an anti-tank missile”, referring to the group’s commando force.
After being identified, the terrorists surrendered. They were apprehended by the troops and transferred to Israeli territory for further questioning.
The Israeli military told AFP two Hezbollah members were captured.
Hezbollah, meanwhile, announced more than 50 attacks targeting Israeli troops and bases in northern Israel and southern Lebanon, particularly in the border coastal town of Naqura.
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Airstrikes have targeted an Iraqi military base used by the Iran-aligned Popular Mobilisation Forces (PMF) in the western province of Anbar, Al Jazeera and Reuters are reporting.
According to Reuters, there have been two fighters killed and five wounded.
It comes shortly after Al Jazeera reported an attack on a military base used by the PMF in Babil province, south of Baghdad, which reportedly wounded four people.
Trump administration eyeing Iran’s parliament speaker as US-backed leader - report
Donald Trump’s administration is quietly weighing Iran’s parliament speaker, Mohammad Bagher Ghalibaf, as a potential partner, and even a future leader, Politico reported on Monday, citing two administration officials.
“He’s a hot option,” one administration official told Politico. “He’s one of the highest … But we got to test them, and we can’t rush into it.”
Some officials in the White House see Ghalibaf as a workable partner who could lead Iran and negotiate with the Trump administration in the war’s next phase, according to the report.
Ghalibaf denied any negotiations with the US in a post on Monday, but administration officials who spoke with Politico dismissed his comments as internal posturing.
“We’re in the testing phase of really trying to figure out who can rise, who wants to rise, who tries to rise,” the first official said. “And then as people rise, we’ll do a quick test, and if they’re radical, we’ll take them out.”
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Israeli minister calls for annexation of southern Lebanon
Israel should emerge from this conflict with a “new” border with Lebanon starting from the Litani River, the far-right Israeli finance minister has said, in the most explicit public call yet from a senior Israeli cabinet member for seizing Lebanese territory.
Bezalel Smotrich said in an interview on Israeli radio on Monday that Israel’s bombardment of Lebanon “needs to end with a different reality entirely”, which includes a “change of Israel’s borders”.
I say here definitively … in every room and in every discussion too: The new Israeli border must be the Litani.
The Litani River is a crucial waterway that cuts through southern Lebanon, around 15-20 miles from the current border with Israel.
Israel claims that its strikes and incursion are targeting Hezbollah, after the armed group launched rockets towards Israeli territory to avenge the assassination of Iran’s supreme leader in the initial strikes that kicked off the US-Israeli war on Iran on 28 February.
But along with its continued bombardment of Beirut’s densely populated southern suburbs, the IDF has destroyed bridges, demolished homes and attacked other civilian infrastructure in its ground assault on southern Lebanon, displacing over 1.2 million Lebanese and killing at least 1,039 - including at least 118 children.
Lebanese officials have raised concerns that Israel’s recent attacks on critical bridges appear to be part of a deliberate campaign aimed at isolating the south from Beirut and other parts of the country, and depopulating the area – as well as suggesting that the Israeli military is preparing for intensified ground operations.
Israel’s deadly attacks on residential buildings and other civilian infrastructure may amount to war crimes, the UN has said.
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The day so far
Donald Trump said the threatened US strikes on Iranian power plants had been postponed after “very good and productive” discussions with Iran about a “complete and total resolution of our hostilities” in the Middle East. After hitting a four-year high, the price of oil fell dramatically following Trump’s comments.
Iran, however, flatly denies that any such talks have taken place, with the country’s parliamentary speaker Mohammad Bagher Ghalibaf saying “fake news” was being used to “manipulate” the oil markets. Iran’s foreign ministry also denied that any talks with the US have taken place during the past 24 days.
Benjamin Netanyahu, meanwhile, said he had spoken with Trump, who saw a chance of an agreement with Iran, but added that Israel would continue its strikes against Iran and Lebanon. Trump believed there was a possibility of “leveraging the mighty achievements obtained by the IDF and the US military, in order to realize the goals of the war in a deal - a deal that will preserve our vital interests,” the Israeli PM claimed in a video statement released by his office.
Israel said it had launched “wide-scale” strikes on Iran on Monday morning, while Tehran continued to fire missiles at the UAE and Saudi Arabia. The IDF also claimed to have hit struck the main security headquarters of Iran’s Islamic Revolutionary Guard Corps (IRGC) as part of a “wave of strikes that was completed a short while ago in the heart of Tehran”.
An Israeli strike also hit Beirut’s southern suburbs on Monday, state media reported according to Agence France-Presse, hours after the Israeli army issued an order for residents of the area to evacuate. An AFPTV live broadcast showed a cloud of smoke over the densely populated southern suburbs, which are considered a Hezbollah stronghold and have not been hit since Friday night.
British destroyer HMS Dragon arrived in the eastern Mediterranean, three weeks after an Iranian-made drone hit the British base of RAF Akrotiri in Cyprus, the UK’s defence secretary said. The British government has faced criticism for the slowness to deploy a warship to the region, after moves by Greece and France to send extra naval support to Cyprus after the attack.
Slovenia became the first EU member state to introduce fuel rationing in a bid to tackle disruptions caused by the US-Israeli war on Iran and Tehran’s retaliation on their allies in the Gulf.
Saudi Arabia’s defence ministry said it has intercepted and destroyed at least five drones over the kingdom’s eastern region.
The US embassy in Muscat lifted its shelter in place guidance for the city, but the guidance remains in place for the rest of Oman, the embassy said in a post on X. It had earlier issued a security alert for the whole country because of “ongoing activity”, without elaborating further.
In a series of updates on X over the last hour, Saudi Arabia’s defence ministry has said it has intercepted and destroyed at least five drones over the kingdom’s eastern region.
Slovenia becomes first EU country to implement fuel rationing
Slovenia has become the first EU member state to introduce fuel rationing in a bid to tackle disruptions caused by the US-Israeli war on Iran and Tehran’s retaliation on their allies in the Gulf, the BBC reports.
In Slovenia, the steep hike in fuel prices has resulted in “fuel tourism”, as drivers from neighbouring countries like Austria take advantage of the lower, regulated prices. Under the new measures Slovenia is implementing, private motorists will be restricted to a maximum purchase of 50 litres of fuel per day. Businesses and farmers, meanwhile, will have a more generous allowance of 200 litres.
The US embassy in Muscat has lifted its shelter in place guidance for the city, but the guidance remains in place for the rest of Oman, the embassy said in a post on X.
It had earlier issued a security alert for the whole country because of “ongoing activity”, without elaborating further.
Analysis: Surprise US talks with Iran’s fractured leadership offer uncertain path out of conflict
The backchannel talks between Donald Trump’s special envoy, Steve Witkoff, and the Iranian foreign minister, Abbas Araghchi, were not a secret in the sense that the Egyptian foreign ministry had tweeted that conversations were under way on Sunday, 24 hours before Trump’s late Monday deadline to start blowing up Iran’s energy infrastructure.
But such is the chaos surrounding the process that the discussions – thought to be well short of negotiations – may have lasted longer than Sunday, with more than one mediator, as is often the case, jostling for the title of peacemaker-in-chief.
Pakistan’s army chief, Asim Munir, for instance, spoke with Trump on Sunday, while Pakistani prime minister, Muhammad Shehbaz Sharif, held talks with Iranian president, Masoud Pezeshkian, on Monday. It is possible Pakistan could become the venue for further talks that this time would include JD Vance, the vice-president, a private sceptic about the war. Keir Starmer, the UK prime minister, was right to warn not to bank on an early end to the conflict.
Trump insists it was the Iranians who requested to talk, and their minds had been concentrated by Trump’s threat of destroying a $10bn power plant. Tehran initially denied any talks had happened either directly or indirectly, saying:
There is no negotiation whatsoever between Tehran and Washington. The statements of the president of the United States are within the framework of an attempt to lower energy prices and buy time for the implementation of his military plans.
Iran’s lines of political authority have been in a state of chaos due to damage wreaked by the Israeli assassination campaign. Among the survivors, Pezeshkian has his strengths as a unifying figure of integrity, but is out of his depth in nuclear talks, and not fully trusted by the military. Ali Larijani, the former secretary of the supreme national security council and Iran’s political glue in the past 12 months, had just been buried. The new supreme leader was possibly in a coma, and definitely invisible. That largely left in terms of politics Mohammad-Bagher Ghalibaf, the speaker of the parliament, and a staunch supporter of the Islamic Revolutionary Guards Corps.
But Ghalibaf put out a partial denial by saying no negotiations with the US have taken place, a formula that left other options open short of direct negotiations with the US. He wrote:
Our people demand the complete and humiliating punishment of the aggressors. All officials stand firmly behind their Leader and people until this goal is achieved. No negotiations with America have taken place. Fake news is intended to manipulate financial and oil markets and to escape the quagmire in which America and Israel are trapped.
Yet gradually, the Iranian foreign ministry spokesman Esmail Baghaei opened up. The spokesman said:
Over the past few days, messages arrived through some friendly countries indicating America’s request for negotiations to end the war, which were responded to appropriately and in accordance with the country’s principled positions – Iran’s stance regarding the strait of Hormuz and the conditions for ending the imposed war has not changed.
You can read Patrick’s full analysis here:
Pakistan stands ready to host US talks with Iran, a foreign office spokesperson has told CNN, after Tehran said Donald Trump’s claims that the regime wanted to make a deal to end hostilities “fake news”.
The broadcaster quotes Tahir Hussain Andrabi saying on Monday that “if both sides agree, Pakistan is always ready to host talks”.
His comments came after contradictory statements from the US president and Iranian leadership earlier in the day.
Trump claimed there have been talks between the United States and Iran over the past day in which the two sides had “major points of agreement”, appearing to avert a potentially severe escalation of the conflict.
Tehran has denied the claim, in which Trump also speculated that a deal could soon be done to end the war. Iran’s foreign ministry spokesperson said no talks had been held with the US since the bombing campaign began 24 days ago.
British destroyer HMS Dragon arrives in eastern Mediterranean
HMS Dragon has arrived in the eastern Mediterranean, three weeks after an Iranian-made drone hit the British base of RAF Akrotiri in Cyprus, the UK’s defence secretary has said.
The Type 45 destroyer will begin “operational integration into Cyprus’s defence” from Monday night, John Healey told MPs.
The British government has faced criticism for the slowness to deploy a warship to the region, after moves by Greece and France to send extra naval support to Cyprus after the attack.
The Cypriot government has also expressed concern that the drone was able to hit the base, suggesting that the presence of the British base on the island should now be reviewed.
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Israel carries out further strikes on Beirut suburbs
An Israeli strike hit Beirut’s southern suburbs on Monday, state media reported according to Agence France-Presse, hours after the Israeli army issued an order for residents of the area to evacuate.
An AFPTV live broadcast showed a cloud of smoke over the densely populated southern suburbs, which are considered a Hezbollah stronghold and have not been hit since Friday night.
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While Israel’s prime minister Benjamin Netanyahu said US president Donald Trump saw a chance of an agreement with Iran, he also said Israel would continue its strikes against Iran and Lebanon.
Netanyahu said in a video statement on Monday: “We will protect our vital interests under any circumstances,” he said, adding: “At the same time, we continue to strike both in Iran and in Lebanon.”
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Netanyahu says Trump sees chance of deal with Iran
Israel’s prime minister Benjamin Netanyahu said on Monday that he spoke with Donald Trump, who saw a chance of reaching a deal with Iran.
Trump believed there was a possibility of “leveraging the mighty achievements obtained by the IDF (Israel Defence Forces) and the US military, in order to realize the goals of the war in a deal - a deal that will preserve our vital interests,” Netanyahu claimed in a video statement released by his office.
I’ll bring you more on this shortly.
Israeli military claims to have struck Iranian IRGC security HQ
The Israel Defence Forces has claimed it had struck the main security headquarters of Iran’s Islamic Revolutionary Guard Corps (IRGC) as part of a “wave of strikes that was completed a short while ago in the heart of Tehran”.
“The headquarter was used by the IRGC to synchronize unit activities and to conduct situational assessments. It was also responsible for directing the Basij Battalions,” the IDF claimed in a statement.
In addition, it claimed: “Prior to the strike, steps were taken to mitigate harm to civilians, including the use of precise munitions, aerial surveillance, and additional intelligence.”
The attack hasn’t been independently verified.
Trump flip-flops on Iran deadline - podcast
As we’ve been reporting, Donald Trump has said he is postponing strikes on Iranian power plants for a five-day period, extending a deadline he gave the regime to open the strait of Hormuz.
The US president had threatened to ‘obliterate’ Iran’s power plants, while Tehran said in return it would ‘irreversibly destroy’ essential infrastructure across the Middle East, including vital water systems, in the conflict’s latest escalation.
The war in the Middle East is now in its fourth week as Trump declares the US and Iran had “good and productive conversations” (which Tehran denies), but what could come next?
Lucy Hough speaks to the Guardian’s diplomatic editor, Patrick Wintour.
Trump claims Iran talks have been 'very good' and Tehran wants to settle - despite Iran's denials that talks have taken place
Speaking in Memphis earlier, Donald Trump claimed that Tehran “wants to settle” and that there’s a “very good chance of a deal” with Iran.
“We’ve eliminated everything there is to eliminate in Iran, including leaders,” he said.
Tehran has “one more opportunity to end its threats” towards the United States and its allies, he said, adding:
We are now having really good discussions. They started last night, a little bit, the night before that. I think they’re very good. They want peace. They’ve agreed they won’t have a nuclear weapon. But we’ll see. We have to get it done.
As Trump repeats his suggestion that all of Iran’s leaders are “gone”, it’s worth noting that, as we reported earlier, he has also said today that the US is talking to a “top person” within the Iranian regime to try to end the war, but not the new supreme leader, Mojtaba Khamenei.
Khamenei has not been seen in public since being named supreme leader two weeks ago, after an Israeli airstrike killed his father and predecessor, Ali Khamenei, fuelling speculation about his health. Trump had made clear before his selection that he considered Mojtaba an “unacceptable” choice, and has speculated about the extent of his injuries and his ability to lead Iran.
Further, Trump told reporters earlier that there have been talks between the US and Iran over the past day in which the two sides had “major points of agreement” and said both wanted “to make a deal”.
He claimed the US and Iran are discussing 15 points to end the war, with Tehran giving up nuclear weapons as points “number one, two and three”. The US president also said he would postpone American attacks on Iranian power plants by five days after having “productive conversations” with Tehran.
Iran’s foreign ministry, meanwhile, denies that any talks with the US have taken place during the past 24 days. And per our last post, Iran’s parliament speaker Mohammad Bagher Ghalibaf has called Trump’s claims “fake news” to “manipulate” oil markets.
“No negotiations have been held with the US, and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped,” Ghalibaf said in a post on X.
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Iranian parliament speaker accuses Trump of 'fake news' over US-Iran talks
Iran’s parliament speaker Mohammad Bagher Ghalibaf said on Monday that “no negotiations” were held with the United States after US president Donald Trump announced talks were ongoing.
“No negotiations have been held with the US, and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped,” Ghalibaf said in a post on X.
It came as US president Trump announced “very good” talks on Monday with an unidentified Iranian official after abruptly shelving plans to attack the Islamic republic’s power plants.
The Axios new site, citing an unnamed Israeli official, named Trump’s interlocutor as Ghalibaf.
Iranian foreign ministry spokesman Esmaeil Baqaei indicated that messages had been received from “some friendly countries indicating a US request for negotiations aimed at ending the war,” according to the official IRNA news agency.
Pakistan PM says he has held talks with Iranian president
Pakistan’s prime minister Shehbaz Sharif on Monday said he spoke with Iran’s president Masoud Pezeshkian, and promised Islamabad’s help in bringing peace to the region.
The pair have spoken several times in the last month, notably to exchange Ramadan and Eid greetings but also to reaffirm Pakistan’s hope for an end to the conflict with the United States and Israel.
Sharif said he extended greetings to Pezeshkian for the Persian new year and they also discussed “the grave situation in the Gulf region and agreed on the urgent need for de-escalation, dialogue and diplomacy”.
In a post on X, he said Pakistan was also committed to playing “a constructive role in advancing peace in the region”.
Several strong explosions and air alert sirens rang out on Monday in Bahrain, according to an AFP journalist, the first to be heard in the Gulf since US president Donald Trump said talks to end the war with Iran were underway.
“Citizens and residents are urged to remain calm and head to the nearest safe place,” Bahrain’s interior ministry said on social media.
UK summons Iranian ambassador over charges against Iranian national, UK-Iranian dual citizen
Iran’s ambassador to the UK has been summoned by the Foreign Office over his country’s “reckless and destabilising actions” in Britain and overseas.
Seyed Ali Mousavi was called into the Foreign Office after an Iranian and a British-Iranian dual national were accused of carrying out hostile surveillance on London’s Jewish community.
The Foreign Office said the UK takes the threat posed by Iran and its proxies “extremely seriously”.
The diplomat was summoned on the instruction of F=foreign secretary Yvette Cooper and was met by Middle East minister Hamish Falconer.
A Foreign Office spokesman said: “The summons follows the recent charging of two individuals, one Iranian national and one British-Iranian dual national, under the National Security Act, on suspicion of providing assistance to a foreign intelligence service.
“National security remains our top priority, and we take threats posed by Iran and those who do its bidding extremely seriously.
“This government will take all measures necessary to protect the British people, including exposing Iran’s reckless and destabilising actions at home and abroad.”
Ukraine’s military intelligence has “irrefutable” evidence that Russia continues to provide intelligence to Iran, Ukrainian president Volodymyr Zelenskyy said on Monday after meeting the head of military intelligence.
“Russia is using its own signals intelligence and electronic intelligence capabilities, as well as part of the data obtained through cooperation with partners in the Middle East,” he said on X.
Kremlin last week dismissed a Wall Street Journal report that Russia was sharing satellite imagery and improved drone technology with Iran as “fake news“.
The United States has requested a meeting with Iran’s parliament speaker Mohammad Baqer Qalibaf on Saturday, a senior Iranian official told Reuters, without mentioning any proposed venue.
The official, who asked not to be identified due to the sensitivity of the matter, said the Supreme National Security Council had yet to decide on any proposed talks and Iran had yet to respond.
A calculation that the US-Israeli war on Iran is spewing greenhouse gases faster than 84 countries combined underestimates the true impact of the war on the climate, according to one of the world’s most senior climate scientists.
On Saturday, the Guardian revealed the findings of an analysis of the carbon impact of the war, which found it had led to 5 million tonnes of carbon dioxide emissions in just its first 14 days, making it a disaster not just for the people of the region, but also for the climate.
On Monday, Johan Rockström, director of the Potsdam Institute for Climate Impact Research, told the Guardian:
While this study confirms the devastating amounts of climate-damaging emissions from the ongoing war in Iran, it is very likely a dramatic underestimate of the negative effects of war on the global climate crisis. The reason is that war undermines trust and ability among nations to collectively act on the global climate crisis, and the war moves attention and finance away from investments in accelerating the path away from climate danger.
However, this does not have to be the case, if political leaders draw the right security conclusions from this war. The Iran war makes it blatantly clear that it is self-destructive for any nation to depend on oil and gas imports. Accelerating the economic path away from fossil fuels is the best step to ensure stable economic development and high resilience against future energy shocks.
Iran's foreign ministry denies talks with US - report
Iran’s foreign ministry spokesperson has denied holding any talks with the US during the past 24 days, sharply undermining Donald Trump who claimed that the US and Iran have held “very good and productive conversations” on an end to the war.
In recent days, friendly countries sent messages indicating that the US had requested talks to end the war, but Iran had not responded, state news agency IRNA quoted the ministry spokesperson as having said.
Summary of the day so far...
The US president, Donald Trump, told reporters there had been talks between the US and Iran over the past day in which the two sides had “major points of agreement” and said both wanted “to make a deal”.
Trump said his Middle East envoy Steve Witkoff and son-in-law Jared Kushner talked to Iran on Sunday and that discussions would continue on Monday.
Trump said the US is talking to a “top person” within the Iranian regime to try to end the war, but this person was not the new supreme leader, Mojtaba Khamenei.
Trump claimed the US and Iran are discussing 15 points to end the war, with Tehran giving up nuclear weapons as points “number one, two and three”.
Trump earlier claimed that the US and Iran had held talks on the “complete and total resolution of hostilities” in the Middle East and that he would postpone American attacks on Iranian power plants by five days after having “productive conversations” with Tehran.
However, the Fars news agency, which is linked to the Islamic Revolutionary Guard Corps, denied any such talks took place, saying there were neither direct nor indirect communications with the US.
Iran’s foreign ministry reportedly said that Trump’s statements were “part of efforts to reduce energy prices and buy time to implement his military plans”, with state media saying they showed the US president was “backing down”.
Late on Saturday evening, Trump threatened to bomb Iran’s power plants after 48 hours unless Iran agreed to fully reopen the strait of Hormuz, the vital oil shipping route which Iran has effectively closed. The deadline was set to expire just before midnight UK time on Monday.
In turn, Iran said it would “irreversibly destroy” essential infrastructure across the Middle East, including vital water systems, if the US followed through on Trump’s threat.
Iran’s defence council earlier today threatened to lay sea mines to block the entire Gulf if Iran’s coasts or islands were attacked.
Over in the UK, the British prime minister, Keir Starmer, said the UK was aware talks were taking place between the US and Iran.
He told MPs it was “hard to answer” how long the US-Israeli war on Iran would continue on for. Starmer said:
It’s hard to answer that question, if I’m honest about it. I think all our focus and energy has to be in the swift de-escalation, but we’ve got to plan on the basis that it could go on for some time, and that’s the way in which we’ll plan this afternoon.
As my colleague Jason Burke notes in this story, Oman, Turkey, Egypt and Pakistan have all been reported to have been involved in efforts to broker an end to the war, though it is unclear how substantial or productive such contacts have been.
Updated
At least one person has been killed in an Israeli airstrike on an apartment in the Beirut suburb of Hazmieh, Lebanon’s national news agency reported.
Israel has repeatedly launched deadly strikes on Beirut’s densely populated southern suburbs since its renewed war on Lebanon began on 2 March – killing over 1,000 people, including many children, injuring over 2,500 others, and displacing over a million.
The renewed Israeli assault on Lebanon was launched after Hezbollah – the Iranian-backed Lebanese militant group – fired rockets into northern Israel in response to the killing of the former Iranian supreme leader, Ali Khamenei, in joint US-Israeli airstrikes.
Trump tells reporters that the US and Iran are discussing 15 points to end the war, with Tehran giving up nuclear weapons as points “number one, two and three”.
Trump said if a deal is reached, the US would move to take Iran’s enriched uranium, which is critical to its disputed nuclear programme. Iran has adamantly refused such demands in the past, insisting it has the right to enrich uranium for peaceful purposes.
On 28 February, the US and Israel launched their war on Iran – widely seen as illegally – in the midst of negotiations, raising questions about whether Washington was ever serious about striking a deal with Tehran over its nuclear programme.
The US wants to ensure Iran, which has four declared enrichment facilities, does not develop nuclear weapons.
According to the International Atomic Energy Agency, the UN’s nuclear watchdog, Iran maintains a stockpile of 440.9 kilograms (972 pounds) of uranium enriched up to 60% purity – a short step away from weapons-grade levels of 90%.
That stockpile could allow Iran to build as many as 10 nuclear bombs, should it decide to weaponise its programme, IAEA director general Rafael Grossi recently said, although he noted that it doesn’t mean that Iran has such a weapon yet.
Updated
Referring to his earlier comments that he has postponed threatened strikes on Iranian power plants for five days, Trump told reporters:
“We’re doing a five day period, and we’ll see how that goes. If it goes well, we’re going to end up with settling this.”
“Otherwise, we’ll just keep bombing our little hearts out.”
Updated
Trump says US talking with 'top person' in Iran - but not new supreme leader
Trump said the US is talking to a “top person” within the Iranian regime to try to end the war, but not the new supreme leader, Mojtaba Khamenei.
When asked by CNN’s chief White House correspondent Kaitlin Collins who the US is talking to in Iran, Trump was quoted as having said:
A top person. Don’t forget: We’ve wiped out the leadership phase one, phase two and largely phase three.
But we’re dealing with a man who I believe is the most respected and the leader, you know it’s a little tough, they’ve wiped out – we’ve wiped out everybody.
Asked whether the US was talking to Khamenei, Trump said: “No, not the supreme leader.”
“We have not heard from the son. Every once in a while you’ll see a statement made – but we don’t know if he’s living,” Trump added.
Mojtaba Khamenei has not been seen in public since being named supreme leader two weeks ago, after an Israeli airstrike killed his father and predecessor, Ali Khamenei, fuelling speculation about his health. Trump had made clear before his selection that he considered Mojtaba an “unacceptable” choice.
Trump made clear that ending Iran’s nuclear program is crucial for any deal and claimed that Iran had agreed to that.
We are very willing to make a deal. It’s got to be a good deal and it’s got to be no more wars, no more nuclear weapons. They’re not going to have nuclear weapons anymore. They’re agreeing to that. Any of that stuff, there is no deal.
He suggested that the US could go in to recover nuclear material from Iran if a deal was made.
The US president also said that you could consider that Iran was already undergoing a regime change because the US-Israeli attacks targeted and killed a large number of top Iranian leaders.
If there was no deal, he said, “we will just keep bombing our little hearts out.”
Updated
Trump says both US and Iran want to 'make a deal'
Speaking to reporters, Trump reasserted that the US and Iran were in discussions about ending the war and there were “major points of agreement” between the two.
On Iran, he told the media that “they want very much to make a deal – we’d like to make a deal too”. Trump added that “we’re going to get together today, by probably phone”.
He said that conversations took place on Sunday and that he expects a deal to be agreed very soon, adding that Middle East envoy Steve Witkoff and son-in-law Jared Kushner were involved in the talks.
He added on the talks: “I didn’t call, they called – and they wanted to make a deal.”
Updated
German Chancellor Friedrich Merz said that he had spoken to US president Donald Trump on Sunday and expressed his concerns about threatened attacks on Iran’s power plants.
“I am grateful that he said today that he is postponing them for another five days and is now also opening the possibility for immediate and direct contact with the Iranian leadership,” said Merz at a press conference in Berlin on Monday.
The UK also welcomed the move. At the No 10 lobby briefing, asked about the president’s statement this morning, the PM’s spokesperson said:
Any reports of productive talks are welcome. We’ve always said that swift resolution to the war is in global interests and that the strait of Hormuz specifically needs to be reopened. You will have seen, with the joint statement that we released with partners last week, that’s a priority for us.
Asked if the UK was aware of what Trump described as the “very good and productive conversations” the US has had with Iran over the past two days, or involved with them, the spokesperson said he had nothing to add to the readout issued last night about Keir Starmer’s call with Trump.
Updated
IDF says it has launched wave of strikes on Tehran targeting infrastructure
The IDF has posted on X saying they have launched another wave of strikes in Tehran:
The IDF has just begun another wave of strikes targeting infrastructure of the Iranian terror regime across Tehran.
Donald Trump earlier claimed that the US and Iran have held talks on the “complete and total resolution of hostilities” in the Middle East and that he would postpone American attacks on Iranian power plants by five days after having “productive conversations” with Tehran.
Iran’s Mehr news agency has quoted the country’s foreign ministry as saying Donald Trump’s statements “are part of efforts to reduce energy prices and buy time to implement his military plans”.
It was not immediately clear where Israel stood on the matter but waves of strikes targeting infrastructure would suggest it is not entirely on the same page as the US.
Updated
Most of Donald Trump’s posts on Truth Social are followed by a stream of sycophantic AI-generated images praising and venerating the US president, often in religious terms, and Trump’s post announcing the postponement of strikes on Iranian energy infrastructure has its fair share of those.
“Thank you Sir for making peace! You are the master of negotiating,” posted a user called @IStandWithTrump47, along with an image of Trump and God shaking hands.
But the president’s latest Iran post also has an unusual number of critical replies. A user called Patrick Kelly accuses Trump of “allowing the terrorist regime to continue”, adding: “YOU’VE BEEN DECEIVED BY SATAN/IRAN!!!!”
OneNationUnderGod asks: “Are we kidding here? We must be because this is nothing more than yet another stall tactic by the mullahs to buy themselves time.” And @tylswil wonders: “Who are you talking to if everyone’s been killed?” Liminal has a similar question: “Who IS the ‘Government of Iran’ someone in your staff spoke to? The Islamic jihadist with the chopped off leg?”
Cape Cod Realtor is more constructive, advising: “Iran must turn over all enriched uranium too.”
It is possible to overstate such criticism, however. Polls show that while the American public opposes the war, the Make America Great Again base has remained supportive.
One comment from @CRYPTQSANTA is probably more representative than any of the criticism: “This is straight-up masterful leadership.”
Summary of the day so far...
It has just gone past 16:35pm in Tehran, and 13:05pm in Tel Aviv and Beirut. Here is a quick recap of events:
The US president, Donald Trump, claimed that the US and Iran have held talks on the “complete and total resolution of hostilities” in the Middle East and that he would postpone American attacks on Iranian power plants by five days after having “productive conversations” with Tehran.
However, Iranian media say there have been no talks between Tehran and Trump and have portrayed the president’s comments as him having “backed down”.
Iran’s foreign ministry reportedly said that Trump’s statements were “part of efforts to reduce energy prices and buy time to implement his military plans”, which could still involve a possible occupation or blockading of Iran’s strategically crucial Kharg Island.
On Saturday, Trump had threatened to bomb Iran’s power plants after 48 hours unless Iran agreed to fully reopen the strait of Hormuz, the vital oil shipping route which Iran has effectively closed.
In turn, Iran said it would “irreversibly destroy” essential infrastructure across the Middle East, including vital water systems, if the US followed through on Trump’s threat.
Iran’s defence council earlier today threatened to lay sea mines to block the entire Gulf if Iran’s coasts or islands were attacked.
Updated
Trump making statements to 'buy time to implement his military plans' - ministry
Iran’s Mehr news agency has quoted the country’s foreign ministry as saying Donald Trump’s statements “are part of efforts to reduce energy prices and buy time to implement his military plans”.
“Yes, there are initiatives from regional countries to reduce tensions, and our response to all of them is clear: we are not the party that started this war, and all these requests should be referred to Washington,” the Iranian foreign ministry was quoted as saying.
Axios reported last week that the US is considering plans to occupy or blockade Iran’s strategically crucial Kharg Island to pressure Tehran to reopen the strait of Hormuz. A contingent of thousands of US sailors and marines is heading to the Middle East, which has raised expectations that a new phase of the war could begin soon.
Trump’s statement earlier about constructive conversations with Iran stands in stark contrast to his threatening language issued to Tehran over the weekend. It is not clear what his strategy is or what his (possible) military plans going forward are.
Updated
Shortly before Donald Trump posted his Truth Social statement, Oman’s foreign minister, Badr Albusaidi, wrote on X that his country was “working intensively” to “put in place safe passage arrangements” for the strait of Hormuz.
“Whatever your view of Iran, this war is not of their making. This is already causing widespread economic problems and I fear they promise to get much worse if the war continues,” Albusaidi, who mediated the latest nuclear talks between Iran and the US, wrote.
Of all the Gulf countries, Oman, which has frequently mediated between the US and Iran, was the most vocal and publicly proactive in trying to halt a US attack on Iran.
Writing in The Economist on Wednesday, Albusaidi said the US and Israel’s “unlawful” war on Iran was “a grave miscalculation” which put the Gulf economies in harm’s way.
He said: “This is not America’s war, and there is no likely scenario in which both Israel and America will get what they want from it.”
Stock markets are suddenly surging after Donald Trump claimed that Tehran and Washington held “very good and productive conversations” over an end to the US-Israeli war on Iran. You can follow all of the latest market reaction in our business blog:
There has been 'no direct or indirect' contact between Iran and the US - report
Iran’s Fars news agency, which is affiliated with Iran’s Islamic Revolutionary Guard Corps (IRGC), has quoted a source as saying there has been “no direct or indirect” contact between Iran and Donald Trump, in contradiction to the US president’s statement just now.
The unnamed source said Trump “backed down” after hearing Iran would target power plants in “West Asia”. We have not been able to independently verify the contents of this report yet.
Updated
From Trump’s statement it is not clear how Iran and the US might agree to “a complete and total resolution” to end the US-Israeli war. Trump previously said its goal was regime change and called on “the Iranian people to take back their country”.
But goals have shifted throughout the conflict, which never had clear objectives and has had a hugely damaging economic toll throughout the world, including in the US, where gasoline prices have soared.
The Iranian government remains in power despite the US and Israel assassinating senior leaders, including the former supreme leader, Ali Khamenei, whose son Mojtaba replaced him.
Analysts say there is no clear off-ramp for Trump, whose limits of power have been tested by Iran’s continued ability to control the strait of Hormuz.
Updated
Trump postpones strikes on Iranian power plants for a five day period
The US president, Donald Trump, has said he has instructed the defence department to postpone all airstrikes against Iranian power plants and energy infrastructure for a five day period. This is subject to the “success” of ongoing “meetings and discussions”, he said in a Truth Social post.
Trump said that, over the last two days, Washington and Tehran had “very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East”.
Trump said on Saturday that he was giving Iran 48 hours – until shortly before midnight GMT on Monday – to open the strait of Hormuz, the vital waterway effectively being blocked by Iran which carries about a fifth of global oil and liquefied natural gas supplies.
Tehran said it would “irreversibly destroy” essential infrastructure across the Middle East, including vital water systems, if the US followed through on Trump’s threat.
Iran also said it would hit power plants in all areas that supply electricity to American bases, “as well as the economic, industrial and energy infrastructures in which Americans have shares.”
Updated
Why Iran’s threat to destroy water facilities could spell disaster for Gulf countries
In this explainer, my colleague Hannah Ellis-Petersen has looked at why desalination plants are so critical to Gulf countries and how civilians would be affected if water infrastructure was destroyed during the war. Here is an extract:
Desalination plants are considered to be among the most sensitive civilian infrastructure in the Gulf. They perform a simple but critical role: they turn seawater into drinking water by removing the salt and other minerals. Today that mostly done through a process called reverse osmosis.
These plants are completely essential for the survival of the Gulf countries, which are small but have vast cosmopolitan cities and industries and are situated in an arid desert environment. These countries have very little rainfall, few lakes or rivers and only a small supply of natural freshwater springs.
People living in the Gulf region rely on just a few desalination plants to provide most of their water, making them a highly strategic and high-impact target in any conflict. These plants are situated on the coast, just across the Arabian Gulf from Iran, making them an easy target for an Iranian attack.
Disabling the plants would have a significant impact on civilian populations and could be an effective way to cause suffering in a country without direct attacks on civilians.
It would also be devastating for industry, which also relies on the water from these plants. The Gulf’s crucial energy industries, including oil and gas, are interconnected with the desalination of water.
'No assessment' to suggest UK is being targeted by Iranian missiles, Keir Starmer says
The UK’s prime minister, Keir Starmer, has said there is “no assessment” that the UK is being targeted by Iranian missiles, after the Israel Defense Forces (IDF) claimed on Saturday that Tehran had weapons that could reach up to 4,000km (2,485 miles).
The IDF also said the Iranian regime posed “a global threat”, claiming Iran’s missiles “can reach London, Paris or Berlin”, without offering any evidence to back up its claim.
The IDF statement was issued after an attempted Iranian strike on the joint UK-US base on Diego Garcia – in the Chagos Islands – on Thursday night into Friday morning. Diego Garcia is about 3,800km (2,360 miles) from Iran and home to an airbase capable of accommodating long-range US bombers.
Asked whether the UK was within range of Iranian missiles, Starmer told the media this morning:
We carry out assessments all the time in order to keep us safe, and there’s no assessment that we’re being targeted in that way at all.
But of course, it’s my job to ensure that British interests, British lives are always uppermost in my mind.
What we need here is de-escalation, and that’s why we had a statement from a number of countries last week about what we need to do about the Strait of Hormuz, which obviously needs careful coordination and a viable plan.
But it’s very important we defend our interests, we defend British lives, but without getting dragged into the war, and that’s the clear divide I’ve put in place.
An Iranian missile would have to travel roughly 2,700 miles to reach London. With the war continuing to escalate, the UK has confirmed it is authorising the use of British military bases to strike Iranian missile launchers that are targeting commercial ships in the strait of Hormuz, as my colleagues write here. Previously, UK bases were only being used to strike Iranian sites targeting British allies and interests in Gulf states.
Updated
The internet blackout in Iran has entered its 24th day, according to internet monitoring group NetBlocks. It said in a post:
It’s now day 24 of Iran’s internet blackout, with the measure passing 552 hours among the most severe registered in any country.
International connectivity remains unavailable to the general public while authorities maintain a selective whitelist for global access.
‘Whitelisting’ allows some officials and institutions to continue to access the internet while it is blocked to the general public.
Those without access to Starlink or alternative ways to communicate – which are often expensive – are cut off, not only from the outside world but the blackout also severely curtails Iranian’s ability to communicate with each other, making mobilisation, for example, much more difficult.
The Guardian US’s deputy business editor, Callum Jones, has written an interesting analysis piece exploring why China, which has long braced for a Gulf oil supply shock, is in a much better position to absorb disruption to energy supplies than many other Asian countries. Here is an extract:
Oil exports from the Middle East have tumbled 61% over recent weeks, according to maritime tracking consultancy Kpler – roiling countries across Asia, which relied on the region for 59% of its crude imports in 2025, and have been left racing to conserve energy.
But China, the world’s second-largest economy, appears to be in a very different position to much of the continent.
Its energy system has “significant buffers”, Michal Meidan, the head of China energy research at the Oxford Institute for Energy Studies, an independent research institute, explained in a recent paper – from huge reserves of oil and liquefied natural gas (LNG) to a robust domestic supply, including alternative energy sources, such as wind and solar.
China, which usually imports around half its crude supplies from the Middle East, is not as exposed as other Asian economies. “While a very high proportion, it is limited when compared to Japan, India or Korea,” said Meidan. Japan, for example, sources about 95% of its oil imports from the region.
Asked about Donald Trump’s threats to “obliterate” Iran’s power plants, Chinese foreign ministry spokesperson Lin Jian warned:
“If the war expands further and the situation deteriorates again, the entire region could be plunged into an uncontrollable situation.”
“The use of force will only lead to a vicious cycle,” he said, adding that the war – which the US and Israel are widely seen to have started illegally – should not have begun in the first place.
The UAE’s defence ministry said in a post this morning that its defences were responding to incoming missile and drone “threats” from Iran. There were no immediate reports of any injuries or casualties.
It said yesterday that it had responded to 1773 drones, 345 ballistic missiles and 15 cruise missiles since the war was triggered by the killing of the former Iranian supreme leader, Ali Khamenei, in joint US-Israeli airstrikes on 28 February, which then led to Iran responding with attacks across the Gulf region.
Updated
Iran says coastal attack will lead to full Gulf closure and mine-laying
Iran’s defence council threatened to lay sea mines to block the entire Gulf if Iran’s coasts or islands are attacked, according to the Fars news agency.
“Any attempt by the enemy to attack Iranian coasts or islands will naturally, and in accordance with common military practice, cause all access routes and communication lines in the Persian Gulf and the coasts to be mined with various types of naval mines, including floating mines that can be released from the coasts,” the statement read.
“In that case, the entire Persian Gulf will practically find a situation similar to the strait of Hormuz for a long time. This time, along with the strait of Hormuz, the entire Persian Gulf will be practically blocked, and the responsibility for it will lie with the threatening party.”
Iran has permitted some friendly countries, including China, India, Pakistan, to secure safe passage of their ships through the strait, but has effectively closed it down for others by attacking ships and reportedly laying mines in the waterway, causing a major crisis in global energy markets.
The US is reportedly considering plans to occupy or blockade Iran’s strategically crucial Kharg Island to pressure Tehran to reopen the vital waterway, in what would mark a huge escalation in the US-Israeli war.
As we have reported, the US president, Donald Trump, who is facing domestic pressure as oil prices soar, warned late on Saturday that the US will “obliterate” Iranian power plants if the strait is not open before a 48-hour deadline (23:44 GMT on Monday according to the time of his Truth Social post).
Updated
Keir Starmer is expected to hold an emergency Cobra meeting this afternoon to discuss the economic fallout of the Iran war on the British people, amid the threat of higher inflation. Chancellor Rachel Reeves and Bank of England governor Andrew Bailey are expected to be in attendance
The meeting comes after Starmer spoke with Trump overnight for 20 minutes in a meeting that was described as “constructive”. The two leaders spoke about the “essential” need to reopen the strait of Hormuz to boost oil supplies to the global economy.
Iran has effectively halted all traffic through the shipping corridor since the US and Israel launched a joint attack on Iran on 28 February. Trump has pushed for European allies to send ships to help reopen the strait but no leaders have so far committed to get involved.
Updated
Interim summary
If you’re just joining us, here’s a snapshot of the latest key developments in week four of the US-Israel war on Iran.
Iranian president Masoud Pezeshkian said “threats and terror” were strengthening Iranian unity, after Donald Trump warned on Sunday he would “obliterate” Iranian power plants if the strait of Hormuz was not fully opened within 48 hours. Tehran said it would destroy essential infrastructure including water systems across the Middle East if Trump carried out his threat.
The situation facing the world is now more serious than the two oil crises in 1973 and 1979 as well as the gas crisis sparked by Russia’s invasion of Ukraine, said the head of the International Energy Agency, Fatih Birol. It was like “two oil crises and one gas crash put all together”. He also said the IEA would release more stockpiled oil “if it is necessary”.
The Israeli military said early on Monday it had begun a wide-scale wave of strikes targeting Iranian infrastructure in Tehran. Air raid sirens sounded across parts of northern and central Israel, including Tel Aviv, and the occupied West Bank overnight on Sunday, warning of incoming missiles from Iran.
Global stock markets were hit and oil prices rose on Monday after Trump’s 48-hour ultimatum and Israel’s warning that the war would continue for several more weeks. A wave of selling is sweeping through Asia-Pacific markets, while the US dollar is rising today as investors seek out a safe haven.
British prime minister Keir Starmer is set to chair an emergency meeting on the economic fallout from the Iran war on Monday, with chancellor of the exchequer Rachel Reeves and Bank of England governor Andrew Bailey also attending, the UK government has said.
Vietnam and Russia are expected to sign energy deals during Vietnamese prime minister Pham Minh Chinh’s visit to Moscow that started on Sunday, Hanoi said, amid surging fuel prices in Vietnam.
Indonesia is eyeing up to 80tn rupiah ($4.7bn) in savings to cushion its economy from the fallout of the war, according to the government.
New Zealand will temporarily permit fuel meeting Australian standards to be supplied domestically for up to 12 months, the government said, amid soaring prices and potential supply risks.
Four ambulances belonging to the Jewish community ambulance service have been set on fire in London, with police saying they were treating the incident as an “antisemitic hate crime”.
With agencies
Updated
Donald Trump’s threat to “obliterate” Iran’s power plants unless the strait of Hormuz reopens is hitting global stock markets today, as reported earlier.
A wave of selling is sweeping through Asia-Pacific markets at the start of the week. Japan’s Nikkei has dropped by 3.4% in afternoon trading, China’s CSI 300 has lost 2.8% and South Korea’s KOSPI index has slumped by 6.5%.
The US dollar, meanwhile, is rising today as investors seek out a safe haven.
Trump’s ultimatum, and Tehran’s threat to “irreversibly destroy” essential infrastructure across the Middle East in response, means the war is entering a new phase of escalation, analysts warn.
Markets are finally starting to wake up to the gravity of the potential for long-term impact on energy markets, reports Neil Wilson, an investor strategist at Saxo UK.
This is an escalatory doom loop – or ‘escalation trap’ with currently no realistic off-ramp. Neither side has an incentive to back down as the costs of doing so are increasing day by day. Each side thinks pushing harder will force the other to back down.
As well as fears of escalation in the conflict, investors are also bracing for rises in interest rates this year, with central banks under pressure to fight a rise in inflation.
See more on the Iran war’s fallout in our business blog here:
Here are some of the latest images coming in from the Middle East amid the escalating war.
Arson attack on London ambulances being treated as antisemitic hate crime, police say
Four ambulances belonging to the Jewish community ambulance service have been set on fire in London, with police saying they were treating the incident as an “antisemitic hate crime”.
Officers were called to Golders Green about 1.45am on Monday after receiving reports of a fire.
The Metropolitan police confirmed the incident in north London was being treated as an antisemitic hate crime.
The London fire brigade (LFB) said it had sent six fire engines and about 40 firefighters to the fire, which damaged four vehicles.
Several cylinders on the vehicles exploded and caused windows to break in an adjacent block of flats, the LFB said. No injuries were initially reported.
Police superintendent Sarah Jackson said police were on the scene to carry out urgent inquiries and “we are in the process of examining CCTV and are aware of online footage”.
We believe we are looking for three suspects at this early stage.
See the full story here:
Updated
Starmer calls emergency meeting on UK economy as risks from war mount
British prime minister Keir Starmer is set to chair an emergency meeting on the economic fallout from the war in Iran on Monday, with chancellor of the exchequer Rachel Reeves and Bank of England governor Andrew Bailey also attending, the UK government has said.
Financial markets face another turbulent week after Iran said it would strike its Gulf neighbours’ energy and water systems if Donald Trump followed through on his threat to “obliterate” Iran’s power plants if it doesn’t fully open up the crucial strait of Hormuz.
The UK is watching with particular unease, Reuters reports. The country’s heavy dependence on imported natural gas, persistently high inflation and stretched public finances have pushed its government bonds into a far steeper decline than those of international peers.
Britain’s finance ministry said before the so-called “Cobra” meeting:
Topics expected to be covered are the economic impact of the crisis on families and businesses, energy security and the resilience of industry and supply chains alongside the international response.
Foreign secretary Yvette Cooper and energy secretary Ed Miliband will also attend.
Reeves has said it is too soon to say what the impact of the war will be for Britain’s economy and has resisted calls for sweeping cost-of-living measures for households, saying instead that more targeted support is under consideration.
Starmer and Donald Trump spoke by phone on Sunday evening, the UK government said in a statement. “The leaders discussed the current situation in the Middle East, and in particular, the need to reopen the Strait of Hormuz to resume global shipping.”
Updated
China and Hong Kong stocks dive
Stocks in China and Hong Kong are on track for their worst day in nearly a year amid the Middle East war.
Investors dumped stocks in sectors ranging from tech to travel to agriculture, fearing they would be hit by soaring oil prices and weaker demand, as the US-Israel war on Iran fans fears of stagflation and rattles global financial markets.
But sectors including coal, oil and electric vehicles attracted inflows on bets they would benefit from a growing pursuit of energy security triggered by the oil shock, Reuters reports.
China’s benchmark Shanghai Composite Index slumped 2.5% at the lunch break, heading for its biggest one-day drop since April 2025. The blue-chip CSI300 Index lost 2.4% to reach a four-month low.
Hong Kong’s Hang Seng Index tumbled 3.5%.
As reported earlier, stocks fell while oil prices rose after Donald Trump and Iranian leaders traded threats over the vital strait of Hormuz and Israel said the war could last several more weeks.
The escalation hammered stock markets, with Seoul and Tokyo – standout performers before the war started – taking the brunt of the selling, shedding as much as 6% and 5%, respectively, at one stage.
Updated
Turning to Indonesia now, the country is eyeing up to 80tn rupiah ($4.7bn) in savings to cushion its economy from the fallout of the war in the Middle East, according to the government.
South-east Asia’s largest economy is also considering fuel-saving measures including one day of remote working a week for government and certain public sector workers amid soaring global oil prices.
In an interview recorded last week, President Prabowo Subianto was asked about a possible shift in budget priorities for the country that heavily subsidises fuel for its population of just over 284 million. The former general said the government was “making every effort” to cut costs by curbing energy consumption and boosting production of renewables, mainly solar power, Agence France-Presse is reporting.
During the interview, presidential spokesman Prasetyo Hadi suggested the government is seeking savings of 80tn rupiah – a number confirmed to AFP by the presidency on Monday.
Prasetyo did not detail where the money would come from.
The government has repeatedly insisted Prabowo’s signature free meals program will remain untouched, and has so far staunchly defended its fuel subsidy, which covers about 30-40% of the cost for consumers and represents around 15% of the budget
Attack on Iran broadcaster kills one, says state TV
A strike on a broadcast station in southern Iran killed at least one person, state television reported on Monday.
“The 100-kilowatt AM transmitter of the Persian Gulf Radio and Television Centre was attacked by the American-Zionist terrorist army,” the state-run Islamic Republic of Iran Broadcasting said, quoted by AFP.
In this attack, which was against international laws, one of the centre’s security colleagues was martyred and another person was injured.
IEA will release more stockpiled oil if needed, chief says
The International Energy Agency is consulting with governments in Asia and Europe on the release of more stockpiled oil “if necessary” due to the Iran war, its executive director has said.
“If it is necessary, of course, we will do it,” Fatih Birol said on Monday. “We look at the conditions, we will analyse, assess the markets and discuss with our member countries.”
IEA member nations agreed on 11 March to release a record 400m barrels of oil from strategic stockpiles to combat the spike in global crude prices. The drawdown represented 20% of overall stocks.
There would not be a specific crude price level to trigger another release, Birol said in an address to Australia’s national press club in the capital of Canberra, Reuters reports.
He said:
A stock release will help to comfort the markets, but this is not the solution. It will only help to reduce the pain in the economy.
Birol is beginning a world tour in Canberra because the Asia Pacific is at the forefront of the oil crisis, he says, given its reliance on oil and other crucial products such as fertiliser and helium transiting the strait of Hormuz.
After meeting Australian prime minister Anthony Albanese, Birol is to travel to Japan this week before a Group of Seven meeting.
Updated
Turning for a moment to Vietnam and Russia, the two countries are expected to sign energy deals during Vietnamese prime minister Pham Minh Chinh’s four-day visit to Moscow that started on Sunday, Hanoi said.
The two sides were expected to sign “important agreements“ focusing on energy, trade and investment, Vietnam’s government said in a statement late on Sunday.
Chinh is scheduled to meet his counterpart Mikhail Mishustin and Russian president Vladimir Putin in a visit that comes as Vietnam has faced surging fuel prices amid the US-Israel war on Iran, with petrol prices up 50% and diesel prices rising 70%, Reuters is reporting.
Communist-run Vietnam maintains close ties with Russia, its longtime top supplier of military equipment, while Russian oil and gas companies operate offshore of Vietnam.
The two countries have been in talks for a Russian company to build Vietnam’s first nuclear power plant, and officials said they are likely to officially sign a nuclear power agreement during Chinh’s trip.
Saudi Arabia says two more ballistic missiles have been fired towards the Riyadh area and it has intercepted one, while the other fell into an uninhabited area.
Its defence ministry also said on X that it had intercepted a drone in the eastern region, as Iran continues attacks around the Gulf region in response to US-Israeli strikes.
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New Zealand will temporarily permit fuel meeting Australian standards to be supplied domestically for up to 12 months, the government said on Monday, as it seeks to mitigate supply risks linked to the Middle East conflict and soaring prices.
Associate energy minister Shane Jones said the alignment of fuel standards would give importers access to more options and reduce the risk of disruptions.
“This is a sensible, time-limited step that gives importers access to a broader range of fuel shipments, including those already in our region,” Jones said in a statement cited by Reuters.
But New Zealand would not follow Australia in relaxing its own standards to allow access to higher sulphur fuel, he added.
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Asian stocks tumble
Stocks have fallen while oil prices rose after Donald Trump and Iranian leaders traded threats over the key strait of Hormuz and Israel said the Middle East war could last several more weeks, AFP is reporting.
The escalation hammered stock markets, with Seoul and Tokyo – which had been the standout performers before the war started – taking the brunt of the selling, shedding as much as 6 and 5%, respectively, at one point.
Hong Kong shed more than 3%, while Shanghai, Taipei and Manila all lost more than 2%. Sydney, Singapore and Wellington were also deep in negative territory.
South Korea’s won dropped to 1,510 won per dollar, its weakest level since 2009.
Oil prices edged up, with Brent sitting around $112 and West Texas Intermediate just below $100.
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Opening summary
Hello and welcome to our live coverage of the US-Israel war on Iran, the broader regional conflict and the impact on the world economy.
The head of the International Energy Agency, Fatih Birol, has said the public needs to understand the “depth of the problem” facing the globe as a result of the war on Iran.
Birol told Australia’s national press club on Friday that the situation was now “very serious”, more so than the two oil crises in 1973 and 1979, and more serious than the gas crisis sparked by Russia’s invasion of Ukraine.
“At that time, in each [oil] crisis, the world has lost about 5 million barrels per day, both of them together 10 million barrels per day. And after that we all know that there were major economic problems around the world. And today we lost 11 million barrels – so more than two major oil shocks put together,” he said.
Plus after Russia’s invasion of Ukraine, the gas markets – especially in Europe – we lost about 75 billion consumer metres (BCM). And as of now, as a result of this crisis, we lost about 140BCM, almost twice. So the situation is, if we want to put in a context, this crisis as it stands now, two oil crises and one gas crash put all together.
Birol added that the crisis was also having a severe impact on other “vital arteries of the global economy”, including petrochemicals and fertilisers, which would have lasting impacts.
In other developments:
Iranian president Masoud Pezeshkian said “threats and terror” were strengthening Iranian unity, after Donald Trump yesterday warned he would “obliterate” Iranian power plants if the strait of Hormuz was not opened within 48 hours.
The price of oil increased early on Monday after Trump’s 48-hour ultimatum to Iran – and Israel warned the war would continue for several more weeks. Shortly after the 2200 GMT open, the price of West Texas Intermediate – the US benchmark crude – for May delivery was up 1.8% to just over $100 a barrel, before retreating slightly.
US treasury secretary Scott Bessent, asked if Trump was “winding” down the war or “escalating” it, told NBC News: “They are not mutually exclusive. Sometimes you have to escalate to de-escalate.” He also said the US government had “plenty of money” to fund the war against Iran but was requesting supplemental funding from Congress to ensure the military was well supplied in the future.
Lebanon’s health ministry said on Sunday that 118 children and 79 women were among those killed during Israel-Hezbollah fighting, while at least 2,786 others had been wounded, according to the Associated Press. The country’s death toll as of Saturday was 1,024 people.
The director general of the International Atomic Energy Agency (IAEA), Rafael Grossi, said he hoped to “re-establish” talks between Iran and the US about Tehran’s nuclear program despite the escalating nature of the conflict. “I’ve been having important conversations here at the White House, and also with Iran. There are some contacts, and we hope to be able to re-establish that line,” Grossi told CBS News.
UK prime minister Keir Starmer and Trump spoke by phone on Sunday evening, according to a statement from the UK government. “The leaders discussed the current situation in the Middle East, and in particular, the need to reopen the Strait of Hormuz to resume global shipping.”
Pope Leo said the death and suffering caused by the war in the Middle East were a “scandal to the whole human family”, as he once again pleaded for an immediate ceasefire. “We cannot remain silent in the face of the suffering of so many people, the defenceless victims of these conflicts. What hurts them hurts the whole of humanity,” Leo said on Sunday at his weekly Angelus prayer in St Peter’s Square.
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