Weeks of tense talks fail to end Middle East war or reopen the vital Strait of Hormuz

The Middle East remains on edge 100 days after the United States and Israel launched military strikes on Iran, with fresh clashes threatening to deepen the conflict. The US military said it shot down two Iranian attack drones near the Strait of Hormuz late Saturday, while Iran responded to recent American strikes by launching missiles toward US allies Bahrain and Kuwait. The latest exchanges come after weeks of indirect diplomacy, tit-for-tat threats and sporadic military confrontations failed to secure a ceasefire or reopen the Strait of Hormuz, a vital artery for global oil and gas shipments. As tensions rise, concerns are mounting over the risk of a wider conflict and further disruption to energy markets. Follow our live coverage for the latest updates.
The United States is considering redirecting Iranian assets to help Gulf allies fund reconstruction and repair damage attributed to Iran, according to a Reuters report citing a source familiar with the matter.
US Treasury Secretary Scott Bessent has directed a team to assess the costs of damage already inflicted on Gulf allies, the source said. The proposal would also explore the possible use of Iranian assets to cover future destruction.
The development comes amid rising regional tensions, with Iran reportedly launching additional drone operations following a wave of strikes against Kuwait and Bahrain.
In a Tehran neighbourhood dotted with shops selling football jerseys and sporting goods, 10-year-old Helma was already feeling World Cup fever.
"I'm supporting Iran because it's always the champion!" she said, sporting a bracelet in the green, white and red of the national flag. "This year, it will be number one out of all the countries!"
Holding a shopping bag containing a national team jersey, her mother explained that Helma was set to appear in a video clip supporting Iran's side, adding: "We came to buy Team Melli outfits for the shoot."
But after weeks of war with Israel and the United States - one of the co-hosts of this year's tournament - not to mention persistent economic hardship and stuttering efforts to bring the conflict to a final close, not every Iranian shares the grade-schooler's excitement.
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The Lebanese Ministry of Health has announced that the death toll from Israeli attacks on Lebanon since March 2 until Saturday has risen to 3,593 killed and 10,990 injured.
In its daily statistical report, cited by the Lebanese National News Agency, the ministry stated that Israeli airstrikes in the past 24 hours resulted in the deaths of 35 people and the injury of 120 others.
OPEC+ ministers meet Sunday to weigh higher production quotas in a bid to cap oil prices that have surged since the Iran war effectively choked off Gulf crude shipments.
But even if the cartel members vow to ramp up output by thousands of barrels per day, analysts say geopolitical realities mean they probably won't move the needle on prices.
With the crucial Strait of Hormuz shut since US and Israeli attacks on Iran in late February, oil prices have nearly doubled, igniting inflation pressures worldwide.
Ministers from the 21 member states of OPEC+, the main oil producing nations and their allies, are holding their quarterly meeting online.
The group is likely to beef up its production quotas by "188,000 barrels a day", said Jorge Leon, analyst at Rystad Energy, similar to recent increases.
But in reality, only seven members - Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman - have the capacity to do so.
One hundred days after the United States and Israel launched military strikes on Iran, the Middle East remains caught between war and peace.
The conflict has killed senior Iranian leaders, disrupted one of the world’s most important energy routes and drawn the region into its most dangerous confrontation in years.
Yet despite a ceasefire, the Strait of Hormuz remains largely blocked, tensions persist in Lebanon and a lasting agreement between Washington and Tehran remains out of reach.
As the war reached the 100-day mark on Sunday, the key question was no longer how it started on February 28, but whether President Donald Trump had achieved what he set out to do.
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The US military said late Saturday it shot down two Iranian attack drones threatening Strait of Hormuz shipping traffic, the latest clash between the warring forces as tensions escalate anew in the Middle East.
"Earlier today, US forces in the Middle East shot down two Iranian one-way attack drones that threatened international maritime traffic in the Strait of Hormuz," US Central Command said on its X account.
"American forces remain postured and ready to continue defending against Iranian aggression."
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Iran fired ballistic missiles and drones toward Bahrain and Kuwait that were intercepted early Saturday, Bahrain's government said, and called on Tehran to halt attacks on Gulf neighbors that test a fragile ceasefire in the Middle East conflict.
Iran said that it targeted American military assets in both countries, after the U.S. attacked surveillance facilities on Qeshm Island and near Sirik that Iran said were used to protect borders and "ensure the security of navigation in international waters." Tehran called the attack a ceasefire violation.
Israeli airstrikes on southern Lebanon on Saturday killed nine people including three members of the Lebanese military, the Lebanese army and state media said, days after the two sides reached a new ceasefire deal.
Lebanon's President Joseph Aoun called the strike against its military a "flagrant violation" of the country's sovereignty and international law during an "ongoing escalation that threatens stability and security in the south."
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