Key events
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The EU's top diplomat urged calm on Monday after Iran and Israel traded strikes, testing the fragile truce and threatening to drag the Middle East region back into war.
“Overnight, we have seen escalation again,†Kaja Kallas said.
double quotation mark I think the region does not need an escalation, but actually that parties sit down to a negotiation table and agree.â€
Stocks in Asia fell sharply and oil prices rose early on Monday after Iran fired missiles at Israel and after heavy losses on Wall Street.
At 9.53am (0053 GMT) Japan's Nikkei 225 was off 3.41% while South Korea's Kospi was down 6.81%.
Brent crude was up 2.4% at $95.32 a barrel, while West Texas Intermediate was 2.3% higher at $92.59, AFP reports.
Strait of Hormuz to reopen with transit fee, says Iranian envoy
The strait of Hormuz will be opened but under new conditions to be set by Iran and Oman, including a transit fee, Iran's ambassador to Moscow has been quoted as saying.
The US-Israeli war on Iran has largely cut oil flows via the strait, and although several tankers have managed to leave the Gulf recently, oil and liquefied natural gas flows are still severely constrained.
“Of course, this strait will be open, but with new conditions to be determined by the Iranian and Omani authorities,†ambassador Kazem Jalali told the Russian newspaper Izvestia in an interview published on Monday, cited by Reuters. He said:
double quotation mark We understand that Iran and Oman provide certain services related to this strait. And fees will be charged for those services.â€

Iran has said a permanent peace deal should allow it to charge fees for ships passing through the strait, which would vary depending upon the type of ship, its cargo and prevailing conditions.
That position is vehemently opposed by Donald Trump, who US warned Oman in late May not to get involved in any effort with Iran to impose a toll. The US treasury secretary, Scott Bessent, said Oman's ambassador had told him there were no plans to impose such tolls.
Monday marks the 100th day of the Iran war, launched on 28 February when Israel and the United States killed supreme leader Ayatollah Ali Khamenei and other senior Iranian leaders.
The war raged until reaching a nominal ceasefire on 8 April, but a permanent end to the hostilities have been challenged by Iran's chokehold on the strait of Hormuz – through which a fifth of all oil and natural gas usually passes – as well as fighting between Israel and Hezbollah in Lebanon.

An Agence France-Presse journalist has reported hearing an explosion over Jerusalem as Israel said a new wave of Iranian missiles was incoming.
The Israeli army wrote on Telegram it had “identified missiles launched from Iran†and was working to intercept the threat. It urged the public to take shelter.
Israel's rescue services say there are no reports of casualties or impacts from the missile launch from Yemen.
The Israeli military, meanwhile, has updated its guidelines for civilians, limiting large gatherings and cancelling school across the country as the conflict escalates.
It is the first time school has been cancelled across Israel since the earlier round of fighting with Iran in April, the AP reports, although schools in Israel's northern border area had been closed for much longer due to the threat of fire from Hezbollah.
British foreign secretary Yvette Cooper has called for restraint amid the elevated hostilities in the Middle East.
She posted on X earlier in the day:
double quotation mark The resumption of conflict between Iran and Israel is in no one's interest. Both sides must show restraint and de-escalate immediately.Negotiations must continue towards the lasting settlement that we all need, for peace and stability in the region, and for the full restoration of global trade.â€
Missile launched at Israel from Yemen, says IDF
The Israeli military says a missile has been launched from Yemen towards Israeli territory and that its aerial defence systems are operating to intercept the threat.
Its post on Telegram didn't give details of the missile's trajectory.
Yemen's Iran-aligned Houthis have attacked Israel before, first entering the Iran war in late March with a missile launch at Israel, just hours after US secretary Marco Rubio said Washington expected to conclude military operations within “weeks, not monthsâ€.
The Saudi civil defence is now saying “the danger has passed†in Al-Kharj governorate, after issuing an alert shortly before warning of potential danger.
Saudi Arabia's civil defence is saying a warning has been issued in the Al-Kharj governorate to alert of potential danger.
The area is home to the Prince Sultan air base that hosts US forces.
Israel launches airstrikes on Iranian targets as blasts heard in several cities
Here's a fuller account of the latest strikes, care of the Associated Press:
Israel launched airstrikes early on Monday targeting central and western Iran in response to missile fire from Tehran, attacks that threatened to drag the wider Middle East back into a regional war.
Iranian state TV reported the sound of explosions being heard in Isfahan, Karaj, Tabriz and Tehran, without immediately elaborating.
A witness in Tehran described hearing at least one large blast somewhere to the west of the country's capital city.
Iran closed the airspace around Tehran's Imam Khomeini International airport – the main airfield in the country – after the Israeli attack.
Iranian officials offered no details on what had been struck, nor any damage information.
Iran's paramilitary Revolutionary Guard said Israel used air-launched ballistic missiles in its attack, without elaborating.
The Israeli military at dawn in Iran issued a short statement as the strikes started: “A short while ago, the Israeli Air Force struck military targets belonging to the Iranian terror regime in western and central Iran.†It did not elaborate.
The White House did not respond to messages about the strikes and whether they were done in coordination with the US.
As reported earlier, US officials said Donald Trump earlier spoke with Benjamin Netanyahu and urged the Israeli prime minister not to immediately retaliate over Iran's missile launches against Israel, which upended the fragile ceasefire in place since April.

Iran's Revolutionary Guard is saying Israel has carried out attacks on targets in Iran using air-launched ballistic missiles, the offical Irna news agency is being quoted as saying.
Iranian state television is reporting the sound of explosions being heard in the cities of Tehran, Isfahan and Tabriz.
It came as the Israeli military said it carried out airstrikes early on Monday targeting western and central Iran after Tehran earlier launched missiles at Israel in apparent retaliation over attacks on Beirut.
Iran has reportedly closed the airspace around Tehran's Khomeini international airport – the country's main airfield – after the Israeli strikes.
Explosions have reportedly been heard in several Iranian cities including Karaj.
Israel strikes Iranian military targets, says IDF
The Israeli military is saying it has struck military targets of the Iranian regime in western and central Iran.
The strikes happened “a short while agoâ€, the Israel Defence Forces (IDF) posted on Telegram, adding that details would follow.
We'll bring you more on this as it comes to light.
Just recapping now, Iran has long said that any peace deal with the US will depend on a ceasefire also holding in Lebanon, which Israel invaded in March in pursuit of Iran-backed Hezbollah fighters who fired rockets and drones across the border in solidarity with Tehran.
But on Sunday Israel launched strikes in the Beirut area for the first time since the US announced a truce plan for Lebanon last week – which Hezbollah firmly rejected.
Iran's Revolutionary Guard said it later targeted Israel's Ramat David air base, near Nazareth.
The Israeli military said it identified missiles launched from Iran and had intercepted them.
Donald Trump – who was spending the weekend at his golf club in Bedminster, New Jersey – spoke with Benjamin Netanyahu by phone for a little under half an hour, Reuters reports an Israeli official as saying, without giving further details.
The Israeli military issued a brief statement shortly after midnight local time citing chief of staff Eyal Zamir as saying his forces had not been directed to attack Iran so far but would do so “with determination†once given the order.






