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Hopes rose that the Iran war could begin winding down as US President Donald Trump said that his government was holding productive talks with Tehran, but fighting showed no signs of slowing, and Iran denied there were talks.

Trump extended his deadline for Iran to reopen the Strait of Hormuz on Monday, saying the US will hold off striking Iranian power plants for five more days to allow US envoys to hold talks with a “respected” Iranian leader.

Iranian officials said that Trump had backed down “following Iran's firm warning.”

Relief ripped through financial markets on Monday as oil prices eased following severe losses prior to Trump's announcement. Markets have experienced vicious swings since the war began because of uncertainty about how long it may last.

The death toll has risen to more than 1,500 people in Iran, more than 1,000 in Lebanon, 15 in Israel and 13 US military personnel, as well as a number of civilians on land and sea in the Gulf region. Millions of people in Lebanon and Iran have been displaced.

Israel gives update on Iran strikes

Israel's military says it has finished an extensive wave of strikes on Iranian “production sites,” without immediately providing more information.

It also said that it has detected a new wave of missiles launched from Iran toward Israel.

Katz threatens Gaza-like destruction in southern Lebanon

Defence Minister Israel Katz says that the Israeli military will destroy homes in southern Lebanon, just as it did in Gaza, in what he says is a stepped-up effort to rid the area of Hezbollah militants.

Katz says that Israel will implement “the Rafah and Beit Hanoun models,” referring to two Gaza border towns that Israel flattened in its offensive in the Palestinian territory.

Katz says that the military is going beyond destroying Hezbollah infrastructure, and that it was also destroying houses in Lebanese villages near the border that he says “serve as terrorist outposts for all intents and purposes.”

6 killed in missile attack on Kurdish base in Iraq

The attack on a Peshmerga base in the northern Iraqi city of Irbil also wounded 30 others.

A statement from the Peshmerga forces blamed Iran for the strike and another attack, which caused no casualties.

Israeli defence officials discuss southern Lebanon

Defence Minister Israel Katz says Israel's military will control a “security zone” in southern Lebanon up to the Litani River.

Katz says the hundreds of thousands of Lebanese people who have evacuated north of the river — fleeing Israeli airstrikes — wouldn't be able to return home until “security is guaranteed” for residents of Israel's north.

He made the comments in a meeting with top Israeli defence officials, according to a statement released by his office.

Oman's top diplomat engages in a flurry of diplomacy

Omani Foreign Minister Badr al-Busaidi has engaged in a flurry of diplomacy amid regional efforts to stop the war in the Middle East.

Oman's Foreign Ministry listed phone calls al-Busaidi made in recent days with 18 top diplomats from across the globe, including the foreign ministers of Iran, Saudi Arabia, Egypt, Iraq and France.

The Omani ministry said that the calls aimed to “support efforts to contain the ongoing war in the region, and return to diplomacy to address outstanding issues.”

Death toll in strike near Beirut increases

Lebanon's Health Ministry says that another person died after the Israeli airstrike on the town of Bchamoun southeast of Beirut, raising the death toll to three.

The ministry says the dead include a 3-year-old girl.

Iran-backed militiamen killed in an Iraqi airstrike

Iraq's Popular Mobilisation Forces, a coalition of militias backed by Iran, says 15 militiamen were killed in an airstrike in western Iraq.

The dead included Saad Dawai al-Baiji, who commands the PMF operations in the province of Anbar, the PMF said in a statement.

The PMF blamed the United States for the strike, which hit the coalition's command headquarters in Anbar.

The PMF was formed to fight the Islamic State group and is formally under the control of the Iraqi army, but in practice still operates with significant autonomy.

Police say Tel Aviv blast caused by Iranian warhead

Israeli Police Superintendent Fadida Yaniv confirmed damage to central Tel Aviv on Tuesday was caused by an Iranian warhead with about 100 kilograms (220 pounds) of explosives.

Yaniv, who serves with the police unit investigating explosions, told the Associated Press at the scene that the missile damaged homes and cars on the residential street, but there were no serious injuries reported.

Egypt minister and US envoy discuss potential Iran negotiations

Egyptian Foreign Minister Badr Abdelatty discussed “potential negotiations” between the US and Iran in a phone call Monday with US envoy Steve Witkoff, Egypt's Foreign Ministry said Tuesday.

The ministry said that the call came during concerted efforts to revive the “diplomatic path .. as the sole way to avert a comprehensive chaos in the region.

Abdelatty also spoke with the foreign ministers of Turkey, Pakistan, Oman, Saudi Arabia, UAE, France and Cyprus, the ministry said.

Central Tel Aviv hit by missile strike

After a recent warning about an incoming Iranian missile barrage, an explosion could be heard, and smoke could be seen in central Tel Aviv.

Israel's military said search and rescue forces were headed for several sites where impacts had been reported.

Israel's Magen David Adom rescue service posted images to X of a damaged site in central Israel where rescue workers thronged around cars that had been charred to ashes.

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Israel's police said Tel Aviv officers were headed to multiple sites where impacts were reported.

Yoel Moshe of Magen David Adom rescue service said four people had been lightly wounded but did not require treatment, adding that teams were searching for more injured.