War in the Middle East: latest developments

The latest developments in the Middle East war:

- Oil prices fall -

Oil prices fell and stocks were mixed Wednesday as investors assessed the chances of US-Iran peace talks after US President Donald Trump extended his ceasefire but kept his blockade of the Strait of Hormuz in place.

Both main oil contracts -- West Texas Intermediate and Brent North Sea -- dropped, having risen around three percent Tuesday.

- Iran cargo ship targeted -

A cargo ship leaving Iran was fired upon and stopped in the water, a British maritime agency reported, as the United States continued its blockade of Iranian ports.

"A master of an outbound cargo ship reports having been fired upon and is now stopped in the water. Crew are safe and accounted for. There is no reported damage to the vessel," the United Kingdom Maritime Trade Operations centre said.

- China warns Mideast at 'critical juncture' -

China warned that the Middle East conflict was at a "critical juncture" after President Trump extended a ceasefire to allow Iran more time to negotiate.

"The current regional situation stands at a critical juncture transitioning between war to peace; the paramount priority remains to make every effort to prevent a resumption of hostilities," Chinese foreign ministry spokesman Guo Jiakun told a news briefing.

- Iran targets container ship -

An Iranian gunboat fired at a container ship off the coast of Oman, causing damage to the vessel's bridge but no casualties, the UKMTO British maritime security agency said.

- Deadly Israeli strike in Lebanon -

An Israeli strike on Lebanon's Bekaa region killed one person and wounded two others despite a truce between Israel and the Hezbollah group, Lebanese state media reported.

Hezbollah on Tuesday said it had launched rockets and attack drones at a site in northern Israel in response to "blatant" Israeli ceasefire violations, which it said included "attacks on civilians and the destruction of their homes and villages".

- 'Iran doesn't want the Strait of Hormuz closed': Trump -

The US president said Iran wanted the Strait of Hormuz open "so they can make $500 Million Dollars a day", which he said the Gulf nation would risk losing if it remains closed.

Trump insisted in a Truth Social post Tuesday that keeping a US blockade of the strait, a critical waterway for about a fifth of the world's oil and natural gas exports, was vital for forging a deal with Iran.

"People approached me four days ago, saying, 'Sir, Iran wants to open up the Strait, immediately.' But if we do that, there can never be a Deal with Iran, unless we blow up the rest of their Country, their leaders included!," Trump said in the post.

In a later post, Trump said "Iran is collapsing financially!" and alleged Iran was "Starving for cash!" adding that the "Military and Police complaining that they are not getting paid. SOS!!!"

- Blockade of Iranian ports -

Since the first round of talks in Islamabad, Trump announced a blockade of Iranian ports, which US Treasury Secretary Scott Bessent said would remain in place.

"In a matter of days, Kharg Island storage will be full and the fragile Iranian oil wells will be shut in," Bessent said in an X post Tuesday, adding that constraining Iran's maritime trade would target its "primary revenue lifelines".

He warned: "Any person or vessel facilitating these flows—through covert trade and finance—risks exposure to U.S. sanctions."

- Trump extends ceasefire, maintains blockade -

Trump extended a US ceasefire with Iran to allow more time for peace talks, but Tehran remained silent on the decision early Wednesday.

The US president posted on social media Tuesday that he would "extend the Ceasefire" until Iran came up with a proposal to end the conflict. However, he "directed our Military to continue the Blockade".

The ceasefire extension came hours before it was believed to be set to expire.

- Iran threatens Gulf oil -

Iran's Revolutionary Guards threatened to prevent oil production in the Middle East if the Islamic republic faced attacks launched from its Gulf neighbours' territory.

"The southern neighbours should know that if their geography and facilities are used in the service of the enemies to attack the Iranian nation, they should bid farewell to oil production in the Middle East," the commander of Guards' aerospace force, Majid Mousavi, was quoted by Fars news agency as saying on Tuesday.

burs/giv/tw