Iran has refused US talks as missiles have attacked Israel, markets are volatile and Pakistan is offering to host possible talks.
Washington/Jerusalem/Tel Aviv: Iran fired several waves of missiles at Israel, setting off air raid sirens in Tel Aviv and damaging homes in the north with debris falling from the barriers.
The strikes came after US President Donald Trump announced he was postponing planned attacks on Iran’s power plants for five days due to “very good and productive” talks on a “complete cessation of hostilities”.
Iranian officials quickly dismissed Trump’s claims as “fake news” designed to manipulate financial markets.
Powerful parliament speaker Mohammad Baqer Qalibaf said there have been no talks with the US.
Iran’s elite Revolutionary Guards slammed Trump’s words as an ineffective “psychological operation” and vowed new attacks on US targets.
Global markets reversed course, ending a brief relief rally that had sent oil prices below US$100 a barrel.
Brent crude futures later rose 4.2% to US$104.21, while US crude rose 4.3% to US$91.93 a barrel.
“The underlying situation is still incredibly fragile or flammable,” said IG Markets analyst Tony Sycamore.
Trump told reporters that his envoys had discussed with a top Iranian official and reached “major points of agreement.”
A European official said there have been no direct US-Iran talks, but messages are being sent through Egypt, Pakistan and Gulf countries.
A Pakistani official and another source told Reuters that direct talks could take place in Islamabad this week.
He said that after talks between Trump and Pakistan’s army chief, US Vice President JD Vance and Trump’s envoys are expected to meet Iranian officials there.
Pakistani Foreign Ministry spokesman Tahir Andrabi said, “Islamabad is always ready to host talks if the parties wish.”
Iran’s Foreign Ministry described the initiative to de-escalate tensions but did not confirm the reported talks.
It said Iran’s foreign minister had reviewed developments related to the Strait of Hormuz with his Omani counterpart.
Iran has effectively closed the strait to 20% of the world’s oil and LNG since the US-Israeli war began on February 28.
More than 2,000 people have been killed in the conflict.
