The statement follows a Reuters report on Wednesday, citing regional sources, that the Houthis were considering imposing fees on ships sailing through the southern Red Sea, a week after declaring a maritime blockade on Saudi Arabia.

The sources in the Reuters report had said the proposal on fees was discussed with Iranian officials during a visit to Tehran by Houthi officials in July, although no timeframe for implementation had been decided.

Yemen says Houthis planning to impose fees for Red Sea transit

The Humanitarian Operations Coordination Center (HOCC) said its “safe transit service was a voluntary and cost-free service”.

“The HOCC categorically confirms that any individual or entity requesting the payment of money in exchange for transiting the Bab el-Mandeb strait does not represent the Republic of Yemen or HOCC in any capacity whatsoever,” it said in a statement.

“The HOCC urges shipping companies not to make any payments or provide any information to unauthorized individuals or entities,” it said.

Palestinian health officials said two Palestinians were killed in the Sheikh Radwan area of Gaza City in central Gaza in an Israeli air strike.

A military spokesperson said those targeted were Hamas but declined to provide further details.

In an earlier incident, an Israeli air strike destroyed two warehouses that were used to store medicine by the Al-Aqsa Martyrs Hospital in Deir al-Balah in southern Gaza, the Palestinian health ministry in Gaza said in a statement.

Several hours after the strike, the Israeli military said it had struck a Hamas hideout near the hospital which the group used to store weapons. Other sites in Gaza that it said were used by Hamas to store arms were also struck, a military statement said.

The military said the strikes were directed by the Shin Bet intelligence agency. It did not disclose any evidence to support the claim that Hamas was storing weapons at any of the sites.

Reuters footage of the Deir al-Balah strike showed a crater several metres wide marking the site of the explosion, with debris strewn across the area, including what appeared to be medical supplies, close to a densely packed tent encampment.

Two other warehouses storing medicine and the hospital’s outpatient clinic were damaged in the strike, the Palestinian Health Ministry said. There were no immediate reports of any injuries.

The hospital said the warehouses had stored essential medical supplies used to treat kidney failure patients undergoing dialysis, along with other materials like gauze used in wound care and routine treatment.

“The Israeli occupation has committed a heinous crime,” Khalil al-Daqran, a doctor at the hospital, said of the strike.

“In the middle of the night, (the military) targeted a warehouse containing medical supplies for the hospital, and the occupation completely destroyed it,” he told Reuters.

Witnesses said the military had issued an evacuation warning for the area before carrying out the Deir al-Balah strike.

Hospitals and other civilian sites are protected under international humanitarian law, although that protection can be lost if they are used for military purposes. Israel’s military says Hamas and other armed groups operate from within civilian areas and facilities, including hospitals.

Fatima Sharab, 34, a displaced Palestinian mother of two living in a tent near the warehouses, said the strike destroyed tents housing 60 to 70 people who had been sheltering there.

Many people in need of medical care had been sheltering in the tents in order to be close to the hospital, Sharab said.

Israel has continued to carry out strikes on Gaza since agreeing last October to a U.S.-mediated ceasefire, killing 1,222 Palestinians in the past nine months. Palestinian health officials say many of those killed were women and children. Hamas rarely announces its casualties.

“The scale of the detonations and demolitions taking place in south Lebanon is deeply concerning, with a devastating impact on civilian infrastructure, cultural heritage, and the collective memory of communities,” the UN said in a statement.

The statement comes a day after the Israeli military carried out large overnight detonations near a UNESCO-listed castle in Lebanon.

Israeli Prime Minister Benjamin Netanyahu and Defence Minister Israel Katz said the army destroyed “terror tunnels in the Beaufort area” using approximately 700 tonnes of explosives.

Beaufort castle was added last week to UNESCO’s List of World Heritage in Danger.

Lebanese President Joseph Aoun on Friday labelled the detonation “an extremely dangerous escalation” and “a direct threat to the process which was launched as part of the framework agreement” reached with Israel during US-sponsored talks last month.

Under the Israel-Lebanon deal, Lebanon’s army is to disarm Hezbollah and the Israeli military is to withdraw from “pilot zones” where Lebanese forces will subsequently deploy.

The timing of the blasts ahead of another round of talks with Israel in Rome next week “sends negative messages and undermines international efforts aimed at consolidating stability”, Aoun added.

Lebanon’s state-run National News Agency reported several detonations in other parts of the south since.

It also reported at least one Israeli strike on the south on Saturday, saying it wounded two people.

The UN said “this escalating pattern of destruction must stop as diplomatic channels exist to resolve any outstanding issues”.

Hezbollah drew Lebanon into the Middle East war on March 2 with attacks on Israel.

Israel retaliated with a massive bombing campaign and a ground offensive that Lebanese authorities say have killed more than 4,300 people.

“Americans in the region should consider departing, or be prepared to depart should there be escalation,” said a security alert, versions of which were posted on social media by the US missions in Amman, Jerusalem and Baghdad.

The messages urged citizens to check flight details and to follow safety advice from local authorities.

“Americans currently in the Middle East should exercise caution and heightened vigilance and should be prepared for flight cancellations, periodic airspace closures, and potential travel disruptions,” it said.

Americans in Jordan were told not to visit US military bases there, which have recently come under Iranian missile attack, and in Israel they were urged to seek the location of the nearest bomb shelter.

“The Iranian regime is unpredictable, as seen by its recent decisions to attack areas in the region without warning or provocations as well as to expand attacks to areas not previously targeted (such as Egypt),” said a post on the US Embassy Jerusalem site.

On Wednesday a drone struck a US-owned gas vessel moored in an Egyptian port, causing a fire. Egypt is investigating but has not yet accused any group of launching the attack.

Iran’s military, meanwhile, has accused Washington of “escalating tensions” in the region, and warned: “Any country serving as defensive shield for criminal and aggressive America will be engulfed by the flames of war.”

This week, Iran and the US resumed overnight exchanges of fire after a days-long lull in fighting although there were no reported strikes overnight Friday to Saturday.

The Middle East war broke out on February 28 when the United States and Israel launched strikes on Iran, which has retaliated with missile and drone strikes across the region.

The agreement extended a decades-long bilateral arrangement that expired on Monday which allows the operation of Baghdad’s only functioning export pipeline, the Iraq-Turkiye Pipeline (ITP).

“While our efforts continue toward a new long-term agreement for this pipeline… we have implemented this transit arrangement covering a daily capacity of 750,000 barrels,” the minister said on X.

Bayraktar said he had a “productive” meeting in Ankara with Iraq’s oil minister and his delegation and they signed the one-year deal  between Turkish state energy company BOTAS and Iraq’s state oil companies SOMO and NOC.

The extension allows time for talks on a more comprehensive agreement. Turkiye wants the pipeline, with a capacity of 1.5 million barrels per day (bpd), to be fully utilised and possibly extended to southern Iraqi oil fields.

The pipeline to the Turkish port of Ceyhan currently carries around 170,000 bpd, according to Turkish data.

Israel has yet to officially comment on the announcement, but a political source told AFP “that there will be no withdrawal whatsoever” from Israeli forces’ current lines “unless Hamas undergoes a genuine disarmament”.

Far-right National Security Minister Itamar Ben Gvir denounced the agreement as “unacceptable”, saying it was “tantamount to agreeing to Hamas organising for the next massacre”.

The Palestinian group’s weapons have been one of the key sticking points in implementing a ceasefire deal in place since October, but Trump announced late Thursday an agreement for Hamas’s “complete disarmament”, calling it a critical step toward a new Palestinian government in Gaza.

The Israeli source said that “the issue of Gaza did not come up” in this week’s meeting between Trump and Israeli Prime Minister Netanyahu in Washington.

Hamas names Khalil Al-Hayya as new overall leader

Hamas officials told AFP that a committee established by Trump’s Board of Peace to govern Gaza would oversee the process of storing the Hamas movement’s weapons.

The group said it expected mediators and the Board of Peace to ensure Israel complied with the deal’s terms, which include Israel’s withdrawal from Gaza.

Israel has long insisted on Hamas’s full disarmament before its forces pull back, and prior to the announcement, the political source had listed “the removal of weapons from Gaza and full demilitarisation of the Strip as a precondition for any process”.

Ghazi Hamad, a member of Hamas’s negotiating team, said the movement was making “concessions for the sake of our people in the Gaza Strip, to save them from killing and displacement”.

“Israel will not intervene in the issue of disarmament. The National Committee is the body that will undertake this task,” he said, referring to the National Committee for Administration of Gaza (NCAG).

Israel kills senior Hamas-led police official in Gaza

Despite the October ceasefire, violence has continued in Gaza, with Israeli strikes killing at least four people, including two children, on Thursday, according to health officials.

Focus now on implementation

The Board of Peace confirmed in a post on X that Hamas had “agreed to a detailed Roadmap for implementing the next phases of the Gaza ceasefire”.

“Our focus now turns to implementation,” the organisation wrote, adding the NCAG will “soon begin a phased transition toward full authority”.

Trump, in an earlier social media post, said that once Hamas is disarmed “Israeli forces will withdraw, and the International Stabilization Force will work with a new Palestinian police force to take responsibility for Gaza being safe for its residents and its neighbours”.

Nickolay Mladenov, the Board of Peace’s high representative for Gaza, said Friday the deal “took months of very difficult negotiations”.

“What happens next matters even more. Implementation and verification have to be real,” Mladenov wrote on X.

Trump Board of Peace’s official Gaza fund is empty

“Withdrawal must move in lockstep with decommissioning,” he added.

EU foreign policy chief Kaja Kallas welcomed the deal, but said success “depends on the full commitment of all parties”.

“A lot needs to fall in place for this to work,” Kallas said on social media. “Verifying Hamas’ compliance will be a significant challenge. Israel would need to eventually withdraw from Gaza.”

‘No exceptions’

Egypt’s state-linked Al-Qahera News said Friday that Cairo will host a meeting soon of the truce’s mediators, which also include the United States, Qatar and Turkey, focused on the second phase of the ceasefire plan.

Earlier, a diplomatic source told AFP that the roadmap “offers a balanced and pragmatic path forward, with all weapons decommissioned and a phased transition of responsibilities” to the new authorities.

The source, who spoke on condition of anonymity as he was not authorised to speak publicly on the matter, said there would be “no exceptions for certain weapons or certain people”.

The roadmap, the source said, would create “a process for the elimination of all tunnels, depots of weapons and any weapons production facilities”.

The source said a verification mechanism would ensure compliance by each side.

A Hamas source familiar with the talks told AFP earlier that the movement was “awaiting the Israeli response to the amendments we recently submitted to the mediators”.

The source said the amendments concerned two articles in the roadmap presented by the Board of Peace.

Regarding the article concerning weapons, the Hamas source said that “some points were removed, and alternatives were proposed”.

Abu Dhabi’s benchmark index jumped 0.4%, extending gains to a second consecutive session.

Conglomerate Alpha Dhabi Holding gained 1.5% ahead of its earnings release later in the day.

Adnoc Drilling advanced 1.2% after the firm reported a 2% growth in Q2 net profit to $359 million, exceeding analyst estimates.

Despite external pressures, UAE stock markets could continue to see resilience, supported by strong economic fundamentals and government initiatives and investments in infrastructure and logistics, said Joseph Dahrieh, managing director at Tickmill.

Dubai’s main index edged 0.1% higher, helped by a 1% rise in toll-gate operator Salik Company and a 5.9% jump in Commercial Bank of Dubai.

The gains were limited by a 0.7% decline in top lender Emirates NBD Bank and a 0.5% fall in blue-chip developer Emaar Properties.

Dubai Financial Market dropped 1.4% after the exchange operator reported a more than 60% decline in second-quarter profit to 229.8 million dirhams ($62.57 million).

Oil prices, a key driver of Gulf financial markets, rose on Friday as persistent regional tensions and shipping constraints fuelled supply concerns.

Brent crude was up 1.4% at $90.31 a barrel by 1146 GMT.

For the week, Abu Dhabi’s index gained 0.9%, while Dubai rose 0.2%, snapping a three-week losing streak.

“Today, the Board of Peace reached a HISTORIC agreement for the COMPLETE DISARMAMENT of Hamas and all other armed groups in Gaza,” Trump said in a social media post, adding that the disarmament would come in phases.

“This is a monumental step toward lasting PEACE and SECURITY.”

The agreement was a critical step towards Gaza being governed by a new Palestinian government that will work closely with the so-called Board of Peace, Trump said.

“At the same time, Israel will have the security it deserves, with Gaza no longer used as a base for terror attacks,” he added.

The Israeli embassy in Washington did not immediately respond to a request for comment on Trump’s announcement.

A Hamas source told Reuters the “draft agreement” stipulates that heavy weapons would only be stored and kept under the control of a Palestinian administration, and the weapons cannot be transferred to Israel.

“We will not take any action regarding disarmament prior to Israel’s withdrawal from the Strip,” Ghazi Hamad, a member of the Hamas negotiating team, told Al Jazeera.

US military says US, Saudi forces struck sites of Iran-backed groups in Iraq

A US official on Thursday told reporters that Israel is “very skeptical that Hamas will disarm.”

“We’re very confident they will adhere to it,” the US official added. “If they don’t, obviously President Trump would be very, very disappointed.”

There were also questions about how long the process would take.

A Board of Peace official gave an estimate of 200 to 320 days, but a US official played down that timeline.

An Israeli official, who declined to be identified, said before Trump’s announcement Israel had rejected a proposal.

“Israel demands the complete disarmament of Hamas, including the removal of weapons from Gaza and the complete demilitarization of the Strip as a precondition for any process,” the official said earlier on Thursday.

“The 15-point document in question does not provide a satisfactory response to these demands and Israel conveyed its objections.” Earlier, Israeli strikes killed at least six Palestinians in Gaza, including two children, medics said.  

A roadmap towards Hamas disarmament?

Hamas leaders held talks with mediators from Egypt, Qatar and Turkey on the second phase of Trump’s Gaza plan, as presented to them by his Board of Peace.

Trump set up the board to oversee a plan to end Israel’s war in Gaza and rebuild the devastated territory.

He appointed members of the board with himself as chair and said last year that the board will supervise Gaza’s temporary governance.

“Ahead of us is a Gaza rebuilt, governed by Palestinians and at peace with Israel an a political horizon to a meaningful resolution the Israeli Palestinian conflict,” Nickolay Mladenov, Trump’s Board of Peace envoy for Gaza, said in a statement after the president’s post. Officials involved in the talks shared few details about plans to rebuild Gaza.

The plan also calls for a surge in humanitarian aid, governance by a civilian Palestinian administration, the withdrawal of Israeli forces from Gaza and the deployment of an international force to help maintain security.  

Handover of weapons could be sticking point

The reality on the ground in Gaza, so far, remains far from the goals of the agreement.

Saudi Arabia says it destroyed drones launched by armed groups in Iraq

Hamas wants Israel to commit to ending attacks on Gaza and withdraw its forces.

It is not yet clear what will happen regarding light or personal weapons or whether the new Hamas stance will be accepted by Israel or the Board of Peace.

The plan includes the elimination of tunnels, arms stockpiles and weapons production facilities, a diplomat involved in the talks said, adding that by the end of the process there would be no remaining militant infrastructure in Gaza.

“This isn’t really a trust deal,” a US official said on Thursday, calling the agreement a “conditions-based deal.”

The Israeli military has continued to expand its military occupation of Gaza, with Prime Minister Benjamin Netanyahu saying that Israel intends to expand the area under its control to 70% of the enclave.

It remains unclear how many forces would be available to deploy with the planned International Stabilization Force, and whether Israeli troops would withdraw from the enclave.  

Attacks continue

Health officials said separate Israeli strikes had killed at least two children, a woman and three men in Gaza on Thursday.

The Israeli military said it struck Hamas in the enclave.

Iran’s Revolutionary Guards say it targeted US positions in the region in response to attack

The ceasefire in Gaza has been repeatedly violated, with more than 1,200 Palestinians, mostly civilians, being killed by Israeli attacks and four Israeli soldiers being killed by militants since the truce began in October, according to Gaza health officials and Israeli authorities, respectively.

Hamas does not usually disclose its losses.

Egypt’s cabinet said on Thursday that an initial investigation found an unidentified drone caused a fire on two vessels at Damietta port on Wednesday. The port lies near the Suez Canal, which links the Mediterranean and Red seas.

No group has claimed responsibility, the cabinet said. Trading sources familiar with the incident said the drone hit US-owned gas storage tanker Energos Winter, causing a fire that spread to a second vessel.

Drone strike near Suez Canal raises new security threat

Overnight, the US military said it struck Iran’s Revolutionary Guards’ military command centres and drone facilities after Tehran fired at US forces in the region.

Iranian state media, quoting the Guards, said US strikes killed three civilians and wounded two children on Qeshm Island, while three Guards members were killed in Zanjan province.

The governor of Khuzestan province, also quoted by state media, said two student dormitory complexes in the southwestern city of Ahvaz were damaged in the attacks.

The Islamic Revolutionary Guard Corps said it struck the Azraq military base in Jordan in response, attacking US F-35 fighter jets and killing US service members. The Pentagon did not immediately respond to a request for comment.

US bases in Jordan have lately become primary Iranian targets. Jordan’s armed forces said earlier on Thursday they had intercepted five Iranian missiles. The Guards also struck US assets at Ali Al Salem Air Base in Kuwait, destroying two drone hangars and a fuel storage facility, according to Iran’s semi-official Tasnim news agency.

An Iranian attack hit a building owned by a Chinese company in northern Kuwait, killing a worker and inflicting significant damage, Kuwait’s Defence Ministry said.

Saudis join us strikes

In a first in the five-month war, Saudi Arabia on Wednesday publicly joined strikes alongside US forces, targeting Iran-aligned groups in eastern Iraq, in retaliation for drone attacks on Saudi oil targets launched from Iraq.

Yemen’s Iran-allied Houthis carried out attacks on Saudi Arabia from Iraq this week in coordination with Iraqi groups, according to assessments by Saudi Arabia and regional partners. After the joint Saudi-US attacks, Saudi Arabia’s defence minister met Vice President JD Vance in Washington to urge the Trump administration not to escalate the conflict, two sources told Reuters.

The war began in February, when the US and Israel launched a bombing campaign in Iran that President Donald Trump said would last only a few weeks. A temporary ceasefire agreement in June collapsed amid renewed fighting over the Strait of Hormuz, a crucial waterway that Iran says it now controls.

The latest strikes in Iraq and Egypt threatened to draw more Middle Eastern countries into the conflict after the Houthis in Yemen declared a naval blockade last week on Saudi Arabia, threatening the alternative Red Sea route for its oil to Asia. Attacks on ships by the Houthi militants prompted London’s marine insurance market to widen its “high risk” zone in the Red Sea to include more of the coast adjacent to Saudi ports.

Trump said he would hit Iran hard for firing missiles at US forces, but that Washington was also still seeking a peace deal to end a conflict that has roiled global energy and finance markets. Oil prices soared more than 8 percent on Wednesday, before easing by about 1 percent on Thursday in volatile trade, with benchmark Brent crude trading just below the $90 mark.

Iran controls crucial shipping waterway

Iran said on Wednesday that it struck three tankers attempting to transit through the Strait of Hormuz along an unauthorised route. However, a QatarEnergy-controlled liquefied natural gas tanker exited the strait overnight, the first such vessel recorded by ship-tracking data leaving the waterway since July 11. Iranian news agency Fars said Tehran had given its permission for the tanker to pass.

Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, sources told Reuters on Tuesday.

Tehran rejected the Omani proposal on Wednesday, but Iran’s semi-official ILNA news agency quoted the country’s foreign ministry spokesperson Esmaeil Baghaei as saying that talks with Oman over the Strait of Hormuz were continuing.

After the war exposed gaps in Iran’s ability to protect military sites and strategic infrastructure, Tehran was expected to receive within weeks a first shipment out of up to 400 Chinese-made shoulder-fired air-defence missile launchers, three sources familiar with the deal told Reuters. Iran’s Foreign Ministry did not immediately reply to a request for comment, while China’s Foreign Ministry denied the report.

The Saudi defence ministry said representatives from 43 countries and the European Union attended an international meeting that discussed the proposed coalition, including Saudi Arabia serving as its founding and leading state and hosting its headquarters.

The ministry said the coalition would strengthen maritime security, safeguard freedom of navigation, secure international trade routes and energy supply lines, and protect shared maritime interests in the Bab el-Mandeb Strait and the Gulf of Aden.

READ ALSO: Yemen says Houthis planning to impose fees for Red Sea transit

It said 14 countries, including Turkiye, Pakistan, Egypt, Sudan and Djibouti, issued a joint statement supporting the proposed coalition. Among the six Gulf Arab states, Oman and the United Arab Emirates were not listed among the countries backing the statement.

The announcement comes a day after two sources familiar with the deliberations told Reuters that Saudi Arabia was seeking to build an international coalition to protect Red Sea shipping from Houthi attacks.

The Houthis said on July 20 they would impose a naval blockade on Saudi Arabia in the Red Sea, and have since claimed a series of attacks on Saudi-linked shipping. Saudi Arabia has responded with air strikes on what it said were Houthi military facilities in Yemen’s Hodeidah used to threaten commercial shipping.

The Red Sea tensions mark the latest front in the wider Iran war, with attacks on shipping spreading beyond the Gulf and pushing oil prices higher.

The Bab el-Mandeb Strait, linking the southern Red Sea with the Gulf of Aden and the Indian Ocean, is a key maritime chokepoint for global trade and energy shipments.

The European Union launched a naval mission in the Red Sea in 2024 to help restore and safeguard freedom of navigation after the Houthis disrupted maritime traffic by attacking vessels in what they said was solidarity with Palestinians during the Gaza war.

The U.S. military said it struck dozens of Islamic Revolutionary Guard targets in Iran, including military command centres and drone facilities, in a two-hour operation launched after Tehran fired ballistic missiles at U.S. forces in the Middle East.

On Wednesday, the United States and Saudi Arabia carried out strikes on Iran-backed paramilitary groups in Iraq, marking the first publicly acknowledged Saudi participation in U.S.-led airstrikes.

The operation came in response to drone attacks launched from Iraqi territory against Saudi oil facilities.

The Qatari index retreated 0.9%, as all its constituents were in negative territory, including the Gulf’s biggest lender Qatar National Bank , which was down 1.4%.

QatarEnergy has notified Edison , one of its biggest European customers, that it will ​not be able to deliver three liquefied natural ‌gas (LNG) cargoes, extending “force majeure” until the end of September, the Italian utility said on Tuesday.

Investors remained focused on persistent geopolitical tensions and shipping-route disruptions. Caution may continue to weigh on local markets as uncertainty over regional security conditions persists, said Hani Abuagla Senior Market Analyst at XTB MENA.

Saudi Arabia’s benchmark index reversed early losses to finish 0.4% higher, led by a 2.9% rise in the country’s biggest lender Saudi National Bank.

Although the Saudi index posted a fourth consecutive monthly decline, it still fared better than most regional markets, albeit Oman, supported by increased alternative crude oil exports from the Red Sea port of Yanbu.

The kingdom’s real gross domestic product shrank 4.8% from a year earlier in the second quarter, preliminary government data showed on Thursday, highlighting the economic fallout of the Middle East war on the world’s top oil exporter and the broader Gulf.

Dubai’s main share index was down 0.1%, while Abu Dhabi index gained 0.4%.

Outside the Gulf, Egypt’s blue-chip index lost 0.4%.

Egypt’s cabinet said on Thursday that a drone strike caused the fire that engulfed two gas vessels at the Mediterranean port of Damietta, confirming that the blaze, which broke out a day earlier, was an attack rather than an accident.

A ceasefire remains in place between Israel and Palestinian group Hamas, but it has not halted the violence in Gaza, and efforts to secure a lasting agreement to end the war have stalled.

Civil Defence spokesman Mahmoud Basal told AFP that “four martyrs, including two children, and a number of wounded were transported following Israeli airstrikes” across the Gaza Strip.

One Palestinian was killed and 10 others were wounded in an airstrike near a camp for displaced people next to Gaza City’s Yarmouk Stadium, according to the civil defence agency.

In a separate incident, Nasser Hospital, in Gaza’s southern city of Khan Yunis, told AFP that its emergency service had received two people including an eight-year-old girl, as well as three wounded.

The casualties came after “an Israeli helicopter strike targeted the tent of the Balawi family west of Khan Younis,” the hospital said.

Tens of thousands of people in Gaza still live in tents, after nearly three years of Israeli airstrikes destroyed much of the Palestinian territory’s standing structures.

The emergency department at Al-Aqsa hospital in central Gaza reported “the arrival of a child martyr and a number of wounded” after an airstrike hit an apartment near the municipality building in the nearby Bureij refugee camp.

Israel’s military did not confirm any individual attack, but told AFP that “the IDF struck several Hamas terror infrastructure overnight” Thursday.

The air strikes come as a Hamas delegation holds talks in Cairo with Egyptian, Qatari, and Turkish mediators aimed at consolidating the ceasefire agreement between Israel and the Palestinian group, according to two sources familiar with the talks who spoke to AFP.

Since the fragile truce came into effect last October, Israel has continued carrying out near-daily air and artillery strikes across the territory, more than 60 percent of which it controls.

Since the ceasefire agreement was announced, at least 1,214 Palestinians have been killed in Gaza, according to the territory’s health ministry, whose figures the United Nations considers reliable.

The Israeli military says it has lost five soldiers in Gaza over the same period, as well as one civilian contractor.

Restrictions imposed on media outlets and limited access in Gaza prevent AFP from independently verifying tolls or freely covering the violence there.

Iran’s Revolutionary Guards later confirmed launching an attack on Jordan’s Al Azraq air base, saying they targeted US aircraft there.

The military’s official spokesperson said “air defences engaged five missiles launched from Iran targeting the Kingdom’s territory early this morning, Thursday. The missiles were detected, intercepted, and shot down according to established defense plans,” the military’s statement said.

In a statement, Iran’s Guards said the US “used the occupied bases in your country (Jordan) to launch an air strike with bunker-buster bombs on two residential houses, targeting two modest homes belonging to local residents on Qeshm Island”.

The US attack had killed a father, mother and a child, and wounded two other children, according to the Guards.

After a days-long lull in fighting, Iran and the United States resumed overnight exchanges of fire, with the US saying it had carried out “heavy” strikes in Iran in retaliation for attacks on Jordan.

The pause in fighting had been aimed at reviving negotiations between the foes, and Pakistani mediators maintained on Thursday that diplomatic efforts at de-escalation were ongoing.

US military says it hit dozens of Iran’s IRGC targets

“The heinous Iranian aggression targeted a building belonging to a Chinese company in the north of the country, resulting in the death of one worker and causing severe material damage to the building,” read a statement published by the ministry.

Medics said an Israeli airstrike on a tent encampment in Khan Younis, south of the enclave, killed a man and an eight-year-old girl.

In the Bureij refugee camp in the ​central Gaza Strip, an Israeli airstrike hit a house killing an 18-month-old child and wounding at least eight ​people, medics said.

The Israeli military said both strikes targeted Hamas.

The latest deaths add to a ⁠toll of more than 1,200 Palestinians, mostly civilians, killed by Israeli attacks since the ceasefire took effect, according to Gaza ​health officials.

Hamas does not usually disclose its losses.

The truce halted, opens new tab full-scale fighting but has not ended near-daily Israeli strikes. Four ​Israeli soldiers have been killed by militants in Gaza over the same period.

Cairo talks

In Cairo, Hamas leaders were holding talks with mediators from Egypt, Qatar and Turkey, over the implementation of the second phase of President Donald Trump’s Gaza plan, as presented to them by his Board ​of Peace, that oversees its implementation.

The plan called for a surge in humanitarian aid, governance by a civilian Palestinian administration, ​the disarmament of Hamas, the withdrawal of Israeli forces from Gaza and the deployment of an international force to help maintain security.

But progress ‌has stalled ⁠in previous months.

On Thursday, a Hamas official said the group was coming with a “positive and good” response, yet he didn’t say whether the group has agreed to fully disarm — a key sticking point in the talks over the past four months.

Hamas wants Israel to commit to ending attacks on Gaza and withdrawing its forces.

Sources close to Hamas said the group was willing ​to “confine and store” heavy weapons ​under a Palestinian body, ⁠not hand it over to Israel. Hamas didn’t comment on that.

It is also not yet clear what would be the fate of light or personal weapons or whether the new Hamas ​stance would be accepted by Israel and the Board of Peace.

The Board of Peace declined ​immediate comment on ⁠the Cairo talks.

Israel wants Hamas to cede power completely in Gaza and to fully disarm. Hamas dissolved a de facto Gaza government last month but kept a caretaking body to maintain the provision of vital services to residents.

Trump says meetings with Zelenskiy and Netanyahu were positive

Israel effectively, controls an estimated 64% of ⁠the tiny ​coastal Gaza Strip, bombed to ruins by Israel’s two-year military assault that ​followed a 2023 Hamas attack on southern Israel.

Nearly all of Gaza’s 2 million people now live on a sliver of land on the coast, mainly ​in makeshift tents or damaged buildings and facing dire living conditions, under Hamas control.

The operation began at 0000 GMT and ended at 0200 GMT on Thursday, US Central Command (CENTCOM) said.

“The strikes aimed to further diminish threats posed by Iran and its proxies to American forces, commercial shipping, and neighbouring Gulf countries,” CENTCOM said in a statement.

Iran’s state media reported that three people were killed in US strikes on Qeshm Island.

Jordan’s armed forces said on Thursday that they had thwarted an Iranian attempt to target the kingdom, intercepting five missiles.

The US strikes came after Iran confirmed on Wednesday that it had fired ballistic missiles at US troops in Jordan.

CENTCOM said all of the missiles were intercepted.

US bases in Jordan have lately become primary Iranian targets.

Earlier on Wednesday, US and Saudi forces launched strikes against Iran-aligned groups in eastern Iraq, in retaliation for drone attacks on Saudi oil targets launched from Iraq.

US strikes Iran as widening war engulfs more countries

The joint attack marked the first time Riyadh has publicly joined strikes alongside Washington.

In Egypt, a drone hit a US-owned gas storage tanker at Egypt’s Mediterranean port of Damietta, British maritime security firm Ambrey said in an initial assessment on Wednesday.

A statement from Egypt’s Petroleum Ministry confirmed a fire at the port but made no mention of a drone attack. It was not immediately clear who was responsible.

The latest strikes in Iraq and Egypt threatened to draw more Middle Eastern countries into the conflict, after the Iran-aligned Houthis in Yemen declared a naval blockade last week on Saudi Arabia.

The war began in February, when the US and Israel launched a bombing campaign in Iran that Trump said would last only a few weeks.

A temporary ceasefire agreement in June collapsed amid renewed fighting over the Strait of Hormuz, a crucial waterway that Iran says it now controls.

Trump said he would hit Iran hard for firing missiles at US forces, but that Washington was also still seeking a peace deal to end a conflict that has roiled global energy and finance markets with the choking of the Strait of Hormuz.

The waterway — which carried a fifth of global oil and liquefied natural gas before the war on Iran — lies between Oman and Iran, linking the Gulf north of it with the Gulf of Oman to the south and the Arabian Sea beyond.

The strait has become the main hurdle in peace talks and a flashpoint for repeated escalations in the conflict.

Iran said on Wednesday that it struck three tankers attempting to transit through the strait along an unauthorised route and that it controls the strait.

Oman has presented Iran with a plan backed by Gulf states to manage the Strait of Hormuz, including collecting voluntary fees for using it, a Gulf source and a Western diplomat told Reuters on Tuesday.

But Iran has rejected the Omani proposal.

Oil prices shot up on Wednesday in one of the sharpest spikes of the five-month war.

Brent crude futures rose more than 8% to push the benchmark well above $90 a barrel, reversing much of a plunge earlier this week when Trump had unexpectedly halted US strikes.

Oil slips as markets look for cues on Gulf supplies

On Thursday prices retreated slightly.

‘Death to America’ shouted in Iraq

Iraq’s Popular Mobilisation Forces, powerful Iran-backed paramilitary groups incorporated into the Iraqi security forces, said at least 20 members were killed and 32 wounded in US-Saudi strikes targeting several bases across Iraq.

Iraqi men shouted “Death to America!” as they carried the bodies of slain fighters in body bags.

The Iraqi presidency denounced the strikes on the paramilitaries as “an unacceptable attack and a flagrant violation of Iraq’s sovereignty”, while also calling for a halt to attacks by armed groups against Iraq’s neighbours.

Though Iran denies its forces have directed strikes from Iraqi territory, Iranian newspaper Hamshahri reported that four of Iran’s Revolutionary Guards advisers had been killed in the strikes on Iraq.

After the joint attacks, Saudi Arabia’s defence minister met Vice President JD Vance in Washington on Wednesday to urge the Trump administration not to escalate the conflict further by attacking Yemen’s Houthis and carrying out more strikes against Iran-aligned militias in Iraq, two sources told Reuters.

US-Saudi strikes hit Iran-backed targets in Iraq: Drone hits US storage tanker at Egyptian port

One of the sources added that such escalation would open the door to “major unknown risks.”

The White House and Saudi embassy in Washington did not immediately respond to a request for comment.

“US forces began launching strikes against Iran at 8:00 p.m. ET today (0000 GMT),” US Central Command said in a statement.

“The strikes are a powerful response to yesterday’s attempted Iranian attacks on US forces based in the Middle East.”

US-Saudi strikes hit Iran-backed targets in Iraq: Drone hits US storage tanker at Egyptian port

Earlier on Wednesday, a drone hit a US-owned gas storage tanker at Egypt’s Mediterranean port of Damietta, British maritime security firm Ambrey said in an initial assessment, while US and Saudi forces launched strikes against Iran-aligned groups in eastern Iraq and Iran fired missiles at US troops in Jordan.

A statement from Egypt’s petroleum ministry confirmed a fire at the port but made no mention of a drone attack. It was not immediately clear who was responsible.

The latest strikes in Iraq and Egypt threatened to draw more Middle Eastern countries into the conflict, after the Iran-aligned Houthis in Yemen last week declared a naval blockade on Saudi Arabia.

The US strikes in Iran on Wednesday followed President Donald Trump’s vow earlier in the day to retaliate against Iran for firing on US troops.

“So it’s our turn,” Trump told reporters at the White House, promising to “hit them very hard” even as he again said Washington would continue to aim for a peace deal with Tehran.

Iran confirmed overnight that it had fired on US bases in Jordan and at ships in the Strait of Hormuz, and also spurned an Omani proposal to jointly manage the strait, a critical global shipping route for oil and gas.

The war began in February, when the US and Israel launched a bombing campaign in Iran that Trump said would last only a few weeks. A temporary ceasefire agreement in June collapsed amid renewed fighting over the strait, which Iran says it now controls.

Oil prices shot up on Wednesday in one of the sharpest spikes of the five-month war. Brent crude futures rose more than 8% to push the benchmark well above $90 a barrel, reversing much of a plunge earlier this week when Trump had unexpectedly halted US strikes.

‘Death to America’ shouted in Iraq

The joint US-Saudi attacks marked the first time Riyadh has publicly joined strikes alongside Washington.

Iraq’s Popular Mobilisation Forces, powerful Iran-backed paramilitary groups incorporated into the Iraqi security forces, said at least 20 members were killed and 32 wounded in US-Saudi strikes targeting several bases across Iraq.

Iraqi men shouted “Death to America!” as they carried the bodies of slain fighters in body bags.

Washington and Riyadh said they struck Iran-backed armed groups in Iraq in retaliation for drone attacks on Saudi oil targets launched from Iraq.

After the joint attacks, Saudi Arabia’s defense minister met with Vice President JD Vance in Washington on Wednesday to urge the Trump administration not to escalate the conflict further by attacking Yemen’s Houthis and carrying out additional strikes against the Iran-aligned militias in Iraq, two sources told Reuters.

One of the sources added that such escalation would open the door to “major unknown risks.” The White House and Saudi embassy in Washington did not immediately respond to a request for comment.

US officials have privately cautioned that resuming major combat operations against Iran would carry risk given the negative impact on stocks of munitions.

The Center for Strategic and International Studies, a Washington-based think tank, estimated this week that the US military has fewer than 1,000 Patriot interceptor missiles and fewer than 250 THAAD interceptors – two key air defense systems.

Though Iran denies its forces have directed strikes from Iraqi territory, Iranian newspaper Hamshahri reported that four Iranian Revolutionary Guards advisers had been killed in the strikes on Iraq.

Iraq’s dangerous rift

The strikes on Iraq expose a dangerous rift in that volatile country. The Shi’ite-led government is one of the few in the world to balance close military and diplomatic ties with both Tehran and Washington, but those divided loyalties are a constant source of tension and frequent domestic unrest.

The office of Prime Minister Ali al-Zaidi, who took power just two months ago, urged the parties involved to avoid escalation and said he wanted to keep the country out of regional conflicts.

The Iraqi presidency denounced the strikes on the paramilitaries as “an unacceptable attack and a flagrant violation of Iraq’s sovereignty”, while also calling for a halt to attacks by armed groups against Iraq’s neighbours.

The deep ties between Iran and Iraq, the two biggest Shi’ite-majority countries, are on display this week as hundreds of thousands of Iranian religious pilgrims head to shrines in Iraq for an annual observance of mourning for martyrs.

Hours before launching the attacks on Iraq, the US military said its air defences had averted a surprise Iranian attack on US troops in the region.

Jordan’s military said it had shot down five Iranian missiles. US bases in Jordan have lately become primary Iranian targets, where three US service members were killed this month in the worst US losses since March.

Iran’s Revolutionary Guards said they had fired several ballistic missiles at US military installations in Jordan, and had struck three tankers that were attempting to transit through the Strait of Hormuz along an unauthorised route.

A statement from Egypt’s petroleum ministry confirmed a fire at the port but made no mention of a drone attack.

It was not immediately clear who was responsible. The drone hit floating storage tanker Energos Winter, causing a fire that then spread to another vessel, three trading sources familiar with the incident said. The fire was dealt with immediately with no casualties, the petroleum ministry said.

The incident came amid a sharp escalation in the conflict, with Iran firing missiles at US forces in Jordan and the United States and Saudi Arabia striking Iran-backed armed groups in Iraq.

Trump says US to hit Iran ‘hard’ after attack on bases in Jordan: Fox News

Alongside Yemen’s Houthi group declaring a naval blockade on Saudi Arabia, the latest exchanges suggest the conflict is spreading further than it has since US and Israel started bombing Iran in February.

US President Donald Trump vowed to retaliate against Iran for firing on US troops days after he halted air strikes.

“We’ll be hitting them hard,” Fox News quoted Trump as saying. “We’re going to beat the fucking shit out of them.” Iran confirmed overnight that it had fired on US bases in Jordan and at ships in the Strait of Hormuz, and also spurned an Omani proposal to jointly manage the strait.

Trump had said operations against Iran would last only a few weeks when he launched them in February but fighting has now gone on for five months with no end in sight.

‘Death to America’ shouted in Iraq

The joint US-Saudi attacks also mark the first time Riyadh has publicly joined strikes alongside Washington.

Iraq’s Popular Mobilisation Forces, powerful Iran-backed paramilitary groups incorporated into the Iraqi security forces, said at least 20 members were killed and 32 wounded in US-Saudi strikes targeting several bases across Iraq.

Iraqi men shouted slogans and “Death to America!” as they carried the bodies of slain fighters in body bags. Washington and Riyadh said they struck the Iran-backed armed groups in Iraq in retaliation for drone attacks on Saudi oil targets launched from Iraq.

It was the first major US military action in the Middle East since last Friday, when Trump abruptly suspended an intensive bombing campaign after 13 days, having been advised by commanders that the strategy had run its course.

US officials have privately cautioned that resuming major combat operations against Iran would carry risk given the negative impact on stocks of munitions.

The Center for Strategic and International Studies, a Washington-based think tank, estimated this week that the US military has fewer than 1,000 Patriot interceptor inventories and fewer than 250 THAAD interceptors– two key air defence systems.

Though Iran denies its forces have directed strikes from Iraqi territory, Iranian newspaper Hamshahri reported that four Iranian Revolutionary Guards advisers had been killed in the strikes on Iraq.

Iraq’s dangerous rift

The strikes on Iraq expose a dangerous rift in that volatile country. The Shi’ite-led government is one of the few in the world to balance close military and diplomatic ties with both Tehran and Washington, but those divided loyalties are a constant source of tension and frequent domestic unrest.

The office of Prime Minister Ali al-Zaidi, who took power just two months ago, urged the parties involved to avoid escalation and said he wanted to keep the country out of regional conflicts.

The Iraqi presidency denounced the strikes on the paramilitaries as “an unacceptable attack and a flagrant violation of Iraq’s sovereignty”, while also calling for a halt to attacks by armed groups against Iraq’s neighbours.

The deep ties between Iran and Iraq, the two biggest Shia-majority countries, are on display this week as hundreds of thousands of Iranian religious pilgrims head to shrines in Iraq for an annual observance of mourning for martyrs.

US says it averted Iranian attack on its troops

Hours before launching the joint attacks with Saudi Arabia on Iraq, the US military said its air defences had averted a surprise Iranian attack on US troops in the region.

Jordan’s military said it had shot down five Iranian missiles. US bases in Jordan have lately become primary Iranian targets, where three US service members were killed this month in the worst US losses since March.

Iran’s Revolutionary Guards said they had fired several ballistic missiles at US military installations in Jordan, and had struck three tankers that were attempting to transit through the Strait of Hormuz along an unauthorised route.

Six of the entities targeted for sanctions were based in China, it said.

The sanctions followed a vow by US President Donald Trump earlier on Wednesday to hit Iran hard, according to an interview with Fox News, after the US military said it had intercepted multiple ballistic missiles launched by Iran toward American forces in the Middle East. The United States and Saudi Arabia jointly struck Iran-backed groups in Iraq on Wednesday.

Treasury’s Office of Foreign Assets Control designated two firms, the Persian Gulf Marine Insurance Co and HormuzSafe Marine Services Authority, which it said were integral to an Iranian scheme to extract digital assets and other revenue from ships transiting the Strait of Hormuz through various insurance policies.

“With its economy in freefall and inflation in the triple digits, the regime is desperate for cash,” said Secretary of the Treasury Scott Bessent.

“The United States will not allow Iran to hold global commerce hostage or use international shipping to finance the IRGC’s terrorism, aggression, and repression,” Bessent said, referring to the Islamic Revolutionary Guard Corps.

The new sanctions are part of a broader push by the Trump administration to leverage both economic tools and military strikes to intensify pressure on Iran and end a deeply unpopular war that has dragged Trump’s approval ratings lower.

“The Iran war demonstrates that this administration will use US economic and military power in concert,” said Jess Hoversen, a former OFAC official who is now chief economist at Column, a digital platform bank.

OFAC has moved quickly to designate maritime logistics, currency exchange infrastructure, and procurement networks, even as the US military has increased its strikes, she said.

“Treasury is moving at an operational tempo, and combining military strikes with targeted sanctions could be a template for future conflicts,” Hoversen said.

Since the start of 2026, OFAC has sanctioned over 100 vessels linked to Iran’s shadow fleet, which has been used to keep oil revenue flowing despite international sanctions.

Port services firm Inchcape said in a separate message two gas tankers had caught fire at Damietta.

The drone hit floating storage tanker Energos Winter, causing a fire that then spread to another vessel, Gaslog Salem, three trading sources familiar with the incident said. Two separate security sources said the cause of the blast was a drone strike.

Trump says US to hit Iran ‘hard’ after attack on bases in Jordan: Fox News

The crew were evacuated and the fire had been brought under control, Ambrey said, adding that no party had claimed responsibility.

Saudi Arabia, working with U.S. Central Command, struck Iran-backed groups in Iraq blamed for drone attacks on its oil facilities, hours after U.S. forces said they had thwarted a surprise Iranian attack on troops in the region.

Tehran’s rejection of Oman’s Strait of Hormuz proposal further dimmed hopes of easing the months-long trade disruption.

Saudi Arabia’s benchmark index declined 1.3% – its biggest intraday fall since early April – dragged by a 2.6% slide in Al Rajhi Bank and a 3.9% plunge in the country’s top lender by assets, Saudi National Bank.

Visible crude loadings from Yanbu, a major Saudi industrial city and Red Sea port, fell at least 30% last week after the Houthis in Yemen announced a blockade, Kpler and AXSMarine data showed, though energy and freight analytics provider Vortexa said exports were broadly stable due to increased “dark” tanker activity.

The decline followed oil major Saudi Aramco’s July 27 shutdown of its 400,000-bpd Jizan refinery after a Houthi attack.

Aramco shares eased 0.1%, while Brent futures rose $4.14, or 4.9%, to $88.23 a barrel by 1145 GMT.

Conflict in the Middle East flared again after a brief lull, while Iran’s rejection of Oman’s Strait of Hormuz proposal further dampened investor sentiment, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.

Regional markets are likely to remain geopolitically sensitive in the near term, though strong second-quarter earnings could lend longer-term support as results continue to emerge, added Takieddine.

On the other hand, dual-listed Americana Restaurants International, the MENA franchisee of KFC and Pizza Hut, surged 7.7% in Riyadh after reporting a sharp jump in quarterly net profit. Its Abu Dhabi-listed shares finished 4.9% higher.

Dubai’s main share index added 0.1%, while the Abu Dhabi index was up 0.1% .

In Qatar, the index lost 0.2%, with the Gulf’s biggest lender Qatar National Bank losing 0.9%.

Investors now await the U.S. Federal Reserve’s 1800 GMT policy decision and Chairman Kevin Warsh’s remarks soon after for signals on inflation and the rate outlook. Gulf markets are particularly sensitive to U.S. monetary policy given their currencies’ dollar pegs.

Outside the Gulf, Egypt’s blue-chip index fell 0.2%, with Talaat Moustafa Group Holding declining 2.3%.

The narrow maritime artery has been a critical waterway for delivering vast quantities of Saudi crude to the international market, after energy exports were largely choked off by fighting in the Strait of Hormuz.

Information minister Moammar al-Eryani described “the move as a dangerous escalation aimed at transforming one of the world’s most strategic maritime corridors into a permanent source of funding for the militia’s military and terrorist activities”.

Eryani said the assessment was provided by recently obtained “confirmed intelligence” indicating that Iran’s Revolutionary Guards were helping manage the effort.

“The intelligence indicates that IRGC experts and advisers are directly involved in designing the technical and administrative framework of the project,” the minister added in comments exclusive to AFP.

He added that this would include “the establishment of a dedicated entity responsible for collecting payments from shipping companies and commercial vessels”.

Anxieties are growing across the Gulf that the Houthis are hoping to copy Iran’s playbook in the Strait of Hormuz by monetising access to the Bab al-Mandab Strait – a move likely to send world energy markets into further disarray.

Last week, the Houthis announced a maritime blockade of Saudi Arabia and have since claimed attacks targeting Saudi tankers and oil infrastructure.

The blockade has threatened Saudi Arabia’s ability to export millions of barrels of crude a day, cutting off the kingdom’s only other maritime route following Iran’s parallel blockade of the Strait of Hormuz.

“We’ll be hitting them hard. They’re going to get a beating,” Fox’s correspondent quoted Trump as saying, adding that the US president used swear words to emphasize his point: “We are going to beat the ‘effing s’ out of them.”

Trump said that US-Saudi bombing of pro-Iranian militias overnight inside Iraq had been coordinated with the authorities in Baghdad.

Trump “says those strikes were coordinated with the Iraqi government,” a Fox correspondent said after speaking with the US leader.

Trump’s reported assertion came as Iraq’s presidency denounced the US-Saudi attacks as a “blatant violation of Iraq’s sovereignty.”

Gharibabadi said Tehran rejected an Omani proposal for an equal division of transit routes between the two countries, saying such a plan did not address Tehran’s security concerns until long-term regional stability is achieved.

He said the Strait of Hormuz would remain closed if Muscat rejected Iran’s proposal, adding that Tehran had never recognised the southern route along Oman’s coast.

READ MORE: Oman presents Iran with Gulf-backed plan for voluntary fees to use Hormuz

Gharibabadi also said Tehran had made it clear to Muscat that it no longer recognised the Traffic Separation Scheme (TSS), arguing that this pathway roughly in the middle of the waterway lies mostly within Omani waters and runs contrary to Iran’s need to monitor transiting vessels after being attacked by the US and Israel in late February.

The TSS, adopted by the International Maritime Organization, is currently unusable due to the risk of mines and has been replaced with Iran’s northern route and Oman’s southern route.

“This is for national security and not bullying because when the TSS was for 60 years in Omani waters, we didn’t say anything,” Gharibabadi said.

The Iranian diplomat also warned that Tehran would not allow any third country, even if invited by Oman, to de-mine the Strait of Hormuz.

A senior Iranian source told Reuters that Tehran had yet to respond to the Omani proposals, intended to serve as a basis to end the disruption to trade through the strait caused by the U.S.-Israeli war on Iran.

President Donald Trump, who abruptly called off a two-week U.S. bombing campaign over the weekend in his latest strategic U-turn, said there were “good talks” under way with Iran but threatened to restart strikes unless negotiations deliver. Iran denies seeking to resume talks with the United States.

Washington launched its renewed bombing campaign earlier this month to break Iran’s grip on the strait, through which about a fifth of global oil and liquefied natural gas flowed before the war.

Iran effectively shut the strait to ships other than its own after the United States and Israel attacked on February 28. A deal last month between the United States and Iran partially reopened it, but the agreement collapsed in early July after Iran fired on ships using a channel it does not approve.

Iran discusses Hormuz Strait in calls with Oman, Saudi Arabia

Iran has said it wants to manage the strait alongside Oman, which controls the opposite shore, and charge service fees to ships that use it. Washington wants to return to the status quo prior to the war, when ships were able to pass freely with no payments, and says charging mandatory fees would be illegal.

Under the Omani proposal, Iran would not exercise sole control and fees would be voluntary, the Gulf source and Western diplomat briefed on the matter told Reuters.

The system would be analogous to one in place on Asia’s Strait of Malacca, where Indonesia, Malaysia and Singapore ask ships to pay voluntary contributions to fund navigation, environmental protection and search-and-rescue operations.

The Western diplomat compared it to a voluntary carbon tax for flights, where anyone buying a plane ticket can choose to tick a box if they want to pay to offset their emissions.

Gulf Cooperation Council foreign ministers met via video call on Tuesday to discuss the latest developments in the conflict, including ways to intensify cooperation on issues related to freedom and safety of vessels through the waterway, a statement from the Qatari Foreign Ministry said.

Iran’s Guards claim strikes against Oman and Bahrain

Iran’s joint military command again rejected a plan put forward by Trump for damages to vessels to be paid from frozen Iranian assets, state media reported. It said that any country or company that accepted such payments would be denied passage through the Strait of Hormuz by Iran’s armed forces.

Trump warns of more strikes

Trump called off his latest campaign of air strikes after receiving advice from military commanders that the strategy had run its course. The 13 nights of renewed U.S. bombing killed scores in Iran and destroyed bridges and tunnels across the south as well as military targets.

Iran had responded with attacks on U.S. bases in neighbouring countries that killed four service members, and strikes on civil infrastructure in Gulf states that it said were in response to U.S. strikes on civilian targets.

Iran has said it would hold fire as long as Washington does. But drone attacks were reported in Jordan, Saudi Arabia and northern Iran on Monday, and Jordan reported another drone being downed on Tuesday.

Oman says 23 rescued, one missing after vessel attacked off coast

In an interview with Fox News on Tuesday ahead of a meeting with Israeli Prime Minister Benjamin Netanyahu in Washington, Trump said the U.S. was in a strong position right now.

He reiterated he was prepared to strike more Iranian targets, but said he would prefer to avoid doing so.

“I think about 91 million people without power, without bridges, would have to live, and it’s a very, very delicate balance. So I think we have a very strong position right now, they know I’m going to do that if they don’t make a deal.”

Trump also repeated a threat to potentially target Iran’s Pickaxe Mountain, a fortified facility buried deep underground near one of Tehran’s main nuclear sites, saying: “If we don’t make a deal we’ll take it out very easily”.

Iran says it has not sought any new negotiations with the United States, which it accuses of violating the agreement reached last month on a framework for talks to end the war.

Indian missing after attack on ship off Oman coast is dead, family says

Trump meets Netanyahu amid strained relations between the two leaders. Israel was involved in the initial bombing campaign but has not been part of subsequent peace talks, and Trump has had to rein in the Israeli leader from attacking targets in Lebanon to try to weaken Iran-backed Hezbollah militants, complicating peace talks with Tehran.

The end of the U.S. bombing campaign over the weekend sent oil prices tumbling by around 8% on Monday, and the fall continued on Tuesday. Brent crude futures were down around 1.6% at close to $87 a barrel by mid-morning on Tuesday.

Washington and Tehran reached an agreement in June on a framework for talks meant to take place by the end of August to resolve major issues such as Iran’s nuclear programme.

The military command spokesperson Ebrahim Zolfaqari rejected U.S. President Donald Trump’s warning that ships damaged by Iran in the Gulf would be compensated using Iranian frozen funds.

Trump says he is ready for military action if Iran talks fail, reports

U.S. President Donald Trump on Tuesday repeated threats to target bridges and other civilian infrastructure if Iran fails to reach a deal, while saying in a Fox News interview that talks had been positive.

Saudi Arabia’s benchmark index dropped 0.9%, its biggest one-day decline in about a month, weighed down by a 0.7% fall in Al Rajhi Bank and a 1% decline in oil major Saudi Aramco.

However, Zain Saudi Arabia added 0.5%, after reporting a more than 60% rise in second-quarter profit.

While signs of a U.S.-Iran de-escalation have supported Gulf markets, concerns over Red Sea disruptions, weaker oil prices and stress in global AI stocks could continue to weigh on regional equities, said Joseph Dahrieh, managing director at Tickmill.

Yemen’s Houthi movement said on Monday it had targeted several crude oil supply and transportation facilities connecting eastern Saudi Arabia to Yanbu, a key Red Sea oil export hub.

Dubai’s main share index retreated 0.9%, as top lender Emirates NBD fell 2.5%, ending a three-session winning streak.

In Abu Dhabi, the benchmark index eased 0.1%, with Alpha Dhabi Holding down 0.7%.

Fertiglobe rose 0.4% after the fertiliser company reported a steep rise in quarterly profit.

Earnings provided some support, but investors remained focused on the Fed’s decision. With most Gulf currencies pegged to the dollar, the region is highly sensitive to U.S. interest rate moves. CME FedWatch showed a 62% probability the Fed would leave rates unchanged, with markets pricing an 81% chance of a hike in September.

The Qatari index fell 0.6%, with petrochemical maker Industries Qatar losing 1.8%.

Outside the Gulf, Egypt’s blue-chip index rose 0.2%, helped by a 0.9% gain in Commercial International Bank .

Fighting between the US and Iran has been paused since Friday after 13 nights of US strikes on the Islamic republic, after an April ceasefire collapsed.

Israel has not taken part in the latest round of hostilities in the war that began in late February with a wave of US-Israeli strikes on Iran.

“The fact is that, at the moment – and this could change within an hour – the Iranians are firing at everything in the region except one country: the State of Israel,” Katz told Israel’s right-wing Channel 14.

“They know that American aircraft are taking off from here to carry out strikes,” he added.

“This does not mean we know what will happen tomorrow; it means we know what our response will be. I announced it, the Prime Minister announced it, and we made it absolutely clear: if Israel comes under fire, we will strike back with full force,” Katz said.

US President Donald Trump on Monday voiced optimism at the prospects for a negotiated peace deal with Iran, as the two sides held their fire for a third consecutive day.

Despite Trump’s optimism, Tehran appeared to quickly test the pause in the U.S. military campaign, with Saudi Arabia, Jordan and Iraq reporting drone attacks on Monday.

Washington abruptly suspended a two-week campaign of air strikes on Iran on Saturday in Trump’s latest strategic U-turn in the five-month-old conflict.

“We’re having good talks,” he said. “I think there’s a good chance that something could happen, ​and if it does, good, if it doesn’t, we go back to doing what we were doing two days ago.”

At a campaign rally in Michigan later on Monday, Trump said of Iran: “You can’t bribe ​them. You’ve got to beat them, and we’ll beat the hell out of them. But we’ll see how it turns out. Right now, there are very friendly negotiations ⁠going on.”

Houthis say hit Saudi Arabia as Trump weighs harder Iran strikes

Iran’s Foreign Ministry spokesman Esmail Baghaei said on Monday that messages were still being passed between the sides through mediators and Iran had not forsaken diplomacy, but reports that it requested negotiations were “fabricated.”

“This is not in ​our DNA,” he said.

A senior Iranian official told Reuters on Sunday that Iran would halt its own attacks as long as Trump’s self-imposed ceasefire continued.

Iran’s central military command later on Monday accused the U.S. of threatening vessels and oil tankers ​in its territorial waters and of “attempting to implement an illegal maritime blockade”, which it said “constitutes an escalation of the conflict in the region.”

Saudi Arabia said it shot down drones aimed at petroleum targets, including in Riyadh. It said they had been launched from Iraq by Iran-backed armed groups, and it reserved the right to respond.

Separately, Iran’s Houthi allies in Yemen said they had targeted the East-West Pipeline carrying oil to Saudi Arabia’s main Red Sea port of Yanbu in retaliation for Saudi drone incursions.

Tehran also said ​it remained in control of the contested Strait of Hormuz, the key waterway for global energy supplies, which Trump has demanded vessels be able to pass through freely.

Oil prices tumble

Public disapproval of the war has been weighing on Trump ​and his Republican Party ahead of November midterm elections in which they have to defend slim congressional majorities.

A Reuters/Ipsos poll conducted over the weekend showed Trump’s approval rating ticking higher to 37%, up three points from last month when it tied ‌the lowest of ⁠his presidency.

However, just one in three Americans support the Iran war, the lowest Reuters/Ipsos reading since the conflict’s early days, with most saying Trump has failed to explain his goals.

Oil prices fall 1% as investors weigh pause in US strikes on Iran

The end of the US campaign after 13 successive nights of intensifying bombing and Trump’s remarks on talks sent oil prices tumbling.

US crude CLc1 fell 8.21% to $81.98 a barrel, and Brent LCOc1 fell to $87.77 per barrel, down 9.31% on the day.

Trump’s decision to suspend US attacks reflected advice from his military that the bombing had reached the limits of what it could achieve, according to a U.S. official and several US media reports.

Yemen Houthis claim strikes on Saudi oil tankers in Red Sea

The US official told Reuters military commanders had advised the president they were running out of targets ​and that the chairman of the Joint Chiefs of Staff, ​General Dan Caine, had expressed concern over the ⁠depletion of air munitions.

Trump dismissed suggestions that the U.S. faced munitions shortages, saying the military was rapidly rebuilding inventories depleted by shipments to Ukraine. He said he would like more of “the more sophisticated stuff.”

Iran media say six ships turned back

Iranian state media outlets cited an “informed source” as saying that Iran had turned around six “offending ships” on Monday ​that had attempted to cross the Strait of Hormuz without permission.

Trump launched his renewed bombing campaign to punish Iran after Tehran fired on ships using a ​route promoted by the United States, ⁠which told vessels to sail close to the coast of Oman.

Iran says ships may pass only through a Hormuz channel that runs closer to its own coast, which it controls and where it intends to impose transit fees.

The two weeks of renewed US bombing killed scores in Iran and destroyed bridges and tunnels across the south as well as military targets.

Four U.S. service members were killed in return fire against US bases in neighbouring states. Iran also struck civilian infrastructure in ⁠Gulf countries, calling ​it retaliation for US strikes.

Houthis say they don’t seek to close key Bab al-Mandeb Strait

It remains unclear what leverage Washington can exert to break Iran’s grip on the strait.

Washington and Tehran reached ​an agreement in June on a framework for talks meant to take place by the end of August to resolve major issues such as Iran’s nuclear programme.

But they have disputed the meaning of the memorandum’s language about the strait, with Washington insisting it requires Tehran to allow free ​travel, while Iran says it grants it the authority to supervise transit.

Fighting between the longtime foes has been paused since early Saturday after 13 nights of renewed US strikes on the Islamic republic sparked by a breakdown in diplomacy over Iran’s blockade of the Strait of Hormuz.

But the US leader expressed hope that renewed diplomacy could bring an end to the war that began in late February with a wave of US-Israeli strikes, rattling both the region and the global economy.

READ ALSO: Trump says he is ready for military action if Iran talks fail, reports

“I have a lot of patience… We’ll see what happens,” he said aboard Air Force One.

“I think there is a good chance that something could happen.”

Tehran had earlier denied that there were any direct talks with the US to end the conflict.

“Mediators may convey messages from the American side to us regarding current developments in the region. But at present, we are not engaged in any negotiations with the United States,” said Iranian foreign ministry spokesman Esmaeil Baqaei.

Trump told the US news outlet Axios that mediating countries had asked him to hold fire to give diplomacy a chance, adding: “We are in very deep talks with Iran.”

Aboard Air Force One he said that if the new efforts failed, “we go back to doing what we were doing” before the pause in fighting.

On that subject, he dismissed concerns that US ammunition stockpiles were running low nearly five months after war broke out.

“We have a lot of ammunition. We have a lot of the mid-level stuff too, more than we could ever use no matter what,” he said.

Saudi Arabia attacked

Despite the recent lull, Saudi Arabia came under attack on Monday, with its defence ministry saying it had intercepted several drones fired by Iran-linked groups in Iraq targeting oil facilities.

No group claimed responsibility, but Riyadh called on Baghdad to prevent such attacks from being launched from its territory.

Pakistan, which has been mediating a resolution to the Middle East war, condemned the drone attacks, saying they “pose a grave threat to peace and stability” in the Middle East.

Yemen’s Iran-backed Houthi rebels also said they launched drone attacks on Saudi Arabian oil infrastructure in response to incursions by the kingdom’s drones. Riyadh is yet to comment on the claim.

Saudi Arabia and other Gulf nations accused pro-Iran militias in Iraq of launching waves of attacks on their territory during the conflict’s earlier phase, but the groups haven’t claimed any attacks in the region since the resumption of hostilities.

Elsewhere, the Israeli military, which has not joined the recent fighting, said it had intercepted two drones near the Jordanian border and was investigating where they had been launched from.

Global stock markets meanwhile rallied and oil prices tumbled on Monday after the pause in strikes between Washington and Tehran.

It came as respite for Gulf shipping and the oil industry, with international benchmark Brent dropping six percent to around $86 a barrel.

Control of the Strait of Hormuz remains a hurdle to any peaceful resolution, and Iran insists on managing the crucial conduit for oil and gas.

Its powerful Revolutionary Guards have been stopping vessels trying to transit the trade route in recent days, including six that state television on Monday said had sailed outside Iran’s designated route.

Tehran says it has held talks in recent days with Oman, which also borders the strait, on “common principles and operational mechanisms” to ensure the safe passage of shipping.

In June, Muscat and Tehran said they would discuss imposing service fees, a move Washington opposes.

But Muscat also angered Iran after saying vessels could transit the Hormuz strait via its waters, with Tehran responding by attacking ships.

Iran’s foreign ministry on Monday said the United States was not involved in the recent discussions with Oman.

Instead Baqaei criticised Washington, saying its conduct in recent years has “resembled that of a mafia gang that adheres to no rules or laws”.

“So long as such behaviour by the United States continues, we cannot be hopeful about the emergence of a reasonable process,” he said.