Main developments
Iran launched new attacks against Israel and Gulf countries as the war raged on despite signs of a diplomatic push to end the conflict.
Israel said its military carried out “extensive” strikes on the Iranian city of Isfahan and southern Lebanon.
Iran circulated a letter to member countries of the International Maritime Organization saying “non-hostile vessels” can transit the Strait of Hormuz “in co-ordination with Iranian authorities”.
Brent crude tumbled below $100 a barrel during volatile after-hours trading on Tuesday. The international benchmark settled 4.6 per cent higher at $104.49 during the regular session.
Donald Trump said Iran was “talking sense” in negotiations with the US that were continuing ahead of a Friday deadline set by the US president for a deal to end the war that has shaken the Middle East.
Iran on Monday denied holding talks with the US but confirmed that mediation efforts were under way by other nations.
Pakistan’s prime minister said his country stood ready to host talks between the US and Iran but did not confirm they would take place.
US oil price tumbles in early Asian trading
The US oil price tumbled in early Asian trading, continuing a bout of market volatility as investors weighed the latest potential developments in the war against Iran.
West Texas Intermediate, the US marker, was down 4.3 per cent in early Asian trading on Wednesday at $88.46 a barrel.
After settling on Tuesday, oil prices swung — with Brent crude dropping below $100 — on media reports that the US had submitted a possible plan to end the war in the Middle East.
Futures tracking the S&P 500 were up 0.7 per cent. Wall Street’s benchmark index closed 0.4 per cent lower on Tuesday.
Iran’s foreign minister voices expectation China and Russia will condemn war
Iran and China’s foreign ministers held a phone call on Tuesday, in which Tehran emphasised expectations of UN countries “especially China and Russia” to condemn the US and Israel’s war on the country.
Abbas Araghchi, Iran’s foreign minister, also reiterated that the Strait of Hormuz is open to the ships of countries which co-ordinate their movements with Iran, according to a readout of the call in state media.
China’s foreign minister, Wang Yi, urged “respect for diplomacy and international law” in order to resolve the conflict as he condemned US and Israeli strikes.