Hopes for a possible easing of the Iran war rose after United States President Donald Trump said his administration was holding productive talks with Tehran and extended a deadline to reopen the Strait of Hormuz. He said the United States would delay striking Iranian power plants for five days to allow further diplomacy. Iranian officials denied that talks were taking place and claimed Washington had backed down after firm warnings from Tehran.

Despite diplomatic signals, fighting continued across the region. Israeli airstrikes hit residential areas near Beirut and locations in southern Lebanon, killing at least two people and wounding several others. Israel said it has targeted fuel stations it accuses of supporting Hezbollah’s military activities, while Iranian missiles were seen over central Israel.

The conflict has caused heavy casualties and displacement. More than 1,500 people have been killed in Iran, over 1,000 in Lebanon, along with deaths in Israel and among United States service members. Financial markets reacted with cautious relief following Trump’s announcement, with oil prices easing after sharp swings driven by uncertainty over the war’s duration.