Middle East crisis live: Starmer calls emergency meeting on UK economy; IEA open to releasing more oil stocks

British PM to chair Monday meeting including chancellor and Bank of England head on fallout from Iran war; International Energy Agency chief says it will release more stockpiled oil ‘if necessary’

British prime minister Keir Starmer is set to chair an emergency meeting on the economic fallout from the war in Iran on Monday, with chancellor of the exchequer Rachel Reeves and Bank of England governor Andrew Bailey also attending, the UK government has said.

Financial markets face another turbulent week after Iran said it would strike its Gulf neighbours’ energy and water systems if Donald Trump followed through on his threat to “obliterate” Iran’s power plants if it doesn’t fully open up the crucial strait of Hormuz.

Topics expected to be covered are the economic impact of the crisis on families and businesses, energy security and the resilience of industry and supply chains alongside the international response.

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Middle East crisis live: Trump considering ‘winding down’ war as US eases sanctions on Iranian oil; Israel launches retaliatory strikes

Move to allow shipments already at sea comes amid a supply crisis and after US president says he does not ‘want to do a ceasefire’; IDF says it is attacking regime targets in Tehran after missiles fired at Israel from Iran

Hello and welcome to our continuing live coverage of the US-Israel war on Iran and its repercussions for the Middle East, the world and the global economy.

President Donald Trump said on Friday he was considering “winding down” military operations against Iran, as the US temporarily eased sanctions on Iranian oil shipments to stem a global supply crisis.

Iran is willing to help Japanese ships sail a vital route for global fuel supplies, foreign minister Abbas Araghchi told Kyodo News in an interview published on Saturday. Japan depends on crude oil imports from the Middle East, most of which transits the strait of Hormuz.

Iran fired two intermediate-range ballistic missiles at Diego Garcia but neither of them hit the joint US-UK military base in the Indian Ocean, the Wall Street Journal and CNN reported, citing multiple US officials. The WSJ said one of the missiles failed in flight, and a US warship fired an SM-3 interceptor at the other. Neither outlet confirmed when Iran launched the missiles.

One person was killed and two others wounded after an Israeli airstrike hit a house in a town in southern Lebanon early on Saturday, state media said.

Trump continued to make his disappointment with the British government known, saying the UK “should have acted a lot faster” in allowing the US military to use its bases in the Middle East.

Earlier, Downing Street approved US use of its bases “for the collective self-defence of the region”, including “defensive operations” degrading Iranian missile sites targeting ships in the strait of Hormuz. Britain had previously only allowed US forces to use its bases for operations to prevent Iran firing missiles that put British interests or lives at risk.

Araghchi said UK prime minister Keir Starmer “is putting British lives in danger by allowing UK bases to be used for aggression against Iran”.

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Israel strikes Iran’s South Pars gasfield hours after forces kill intelligence minister

Death confirmed of Esmail Khatib, the third senior Iranian figure killed in 24 hours, as Israel also launches intense airstrikes on Lebanon

Israel struck Iran’s giant South Pars gasfield on Wednesday, marking a major escalation of the war, hours after Israeli forces killed the regime’s intelligence minister and launched some of the most intense airstrikes in Beirut for decades.

The attack on the Pars site in the Persian Gulf, which Iran shares with Qatar and constitutes the world’s largest natural gasfield, prompted Tehran to warn neighbouring states that their energy infrastructure could be targeted “within hours”, and triggered furious rebukes from Qatar and other nations in the region.

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The escalation trap: how the Iran war could become more costly and complex

Iran is trying to create wedges between Gulf states and the US, but Trump is very comfortable on the ‘escalatory ladder’

Middle East crisis – live updates

In its current phase, the Israeli-US war against Iran and its proxies has become a proving ground for two competing concepts of military escalation, each of which threatens to become a trap.

On one side, Donald Trump and Benjamin Netanyahu have failed thus far in their ill-defined and shifting strategic aims. Despite killing Iran’s supreme leader, Ali Khamenei, and other key leaders in the opening salvo of the campaign, the clerical regime remains and Iran’s stockpile of highly enriched uranium is unsecured. Airstrikes are intensifying and hitting a greater number of targets.

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Middle East crisis live: Mojtaba Khamenei chosen as Iran’s new supreme leader; oil prices soar past $100 a barrel

Iran has named hardliner Mojtaba Khamenei as the country’s new supreme leader; Donald Trump says oil price spike ‘a small price to pay’ as markets tumble

Donald Trump has said a decision on when to end the war with Iran will be a “mutual” one he’ll make together with Benjamin Netanyahu, the Times of Israel has reported.

It said Trump also claimed in a brief telephone interview on Sunday that Iran would have destroyed Israel if he and Netanyahu had not been around. The US president said:

Iran was going to destroy Israel and everything else around it … We’ve worked together. We’ve destroyed a country that wanted to destroy Israel.

I think it’s mutual … a little bit. We’ve been talking. I’ll make a decision at the right time, but everything’s going to be taken into account.

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‘The memories stay behind’: hundreds of thousands flee the Israeli bombs in Beirut

The normally vibrant southern suburbs are a ghost town, their throngs of people replaced by rubble and fires

The ding of half a million phones, a pause and a collective gasp: in an instant, more than 500,000 people had been made homeless.

Shooting in the air, panicked phone calls and honking filled the streets of Beirut as people began to flee. Thousands abandoned their cars and began the slow march to the sea, desperate to escape the Israeli bombs which they knew would soon fall on their homes, whether they were in them or not.

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Iran-backed militias intensify attacks against US, Israel and allies

Iraq emerges as key front in new and often clandestine confrontation after launching dozens of attacks

Iran-backed militias around the Middle East are intensifying attacks against Israel, the US and their allies, in retaliation for the ongoing joint US-Israeli offensive against Tehran as the war draws in new armed actors, threatening wider chaos and violence.

Israel and the US have targeted Iran’s network of militant groups, with Iraq emerging as a key front in this new and often clandestine confrontation.

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Israel strikes Lebanon after Iran ally Hezbollah fires missiles over border

Conflict spreads as militant group targets Israel over Ali Khamenei killing and IDF responds with Beirut strikes

Israel has carried out heavy airstrikes on the Hezbollah-dominated southern suburbs of Beirut after the Iran-backed Lebanese group launched missiles and drones towards Israel in retaliation for the killing of Iran’s supreme leader, Ali Khamenei.

Residents of Beirut were woken by the sounds of about a dozen blasts at 3am as Israel struck three different locations in the south of Lebanon’s capital. Bombings continued into the late hours of the morning, with the area almost entirely deserted by the time of a strike at around noon.

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At least 10 killed in Israeli strikes in Lebanon’s Bekaa valley, health ministry says

Hezbollah leader among dead as Israel says it hit militant command centres

At least 10 people have been killed and 24 wounded – including three children – in Israeli strikes in Lebanon’s eastern Bekaa valley, the Lebanese health ministry has said.

Israel said it had hit “command centres” of the Lebanese militant group Hezbollah in the Bekaa valley. Two security sources told Reuters that senior Hezbollah leader Hussein Yaghi was killed in the attacks.

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Hezbollah chief of staff killed in Beirut airstrike, Israeli military says

Militant group confirms Haytham Ali Tabatabai was killed in attack that dramatically escalates tensions in the region

Israel targeted one of Hezbollah’s most senior military commanders in an airstrike in Beirut’s southern suburbs on Sunday, dramatically escalating tensions with the group almost exactly a year after a ceasefire ended 14 months of clashes.

The Israeli military said several hours after the attack that Haytham Ali Tabatabai, Hezbollah’s chief of staff, was killed in the strike in Lebanese capital.

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Israel used widely banned cluster munitions in Lebanon, photos of remnants suggest

Exclusive: Images are first indication that Israel has used cluster munitions in nearly 20 years

Israel used widely banned cluster munitions in its recent 13-month war in Lebanon, photos of munition remnants in south Lebanon seen by the Guardian suggest.

The images, which have been examined by six different arms experts, appear to show the remnants of two different types of Israeli cluster munitions found in three different locations: south of the Litani River in the forested valleys of Wadi Zibqin, Wadi Barghouz and Wadi Deir Siryan.

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Israel carries out wave of airstrikes on southern Lebanon

Three towns attacked despite truce with Hezbollah in what Israeli military says was effort to prevent group rearming

The Israeli military has carried out a wave of airstrikes in southern Lebanon in what it described as an attempt to prevent Hezbollah rearming.

Israeli warplanes struck the towns of Kfar Dounine, Tayr Debba and Zawtar al-Sharqiya on Thursday, about an hour after issuing evacuation warnings to residents. No deaths had been reported at the time of publishing.

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Israel threatens to step up attacks against Hezbollah in Lebanon

Israel’s defence minister accuses Beirut of delaying efforts to disarm militant group a day after deadly Israeli airstrike

Israel has threatened to step up its attacks against Hezbollah in southern Lebanon, a day after the Lebanese health ministry reported that four people had been killed in an Israeli airstrike.

Despite the November 2024 ceasefire, Israel maintains troops in five areas in southern Lebanon and has kept up regular strikes.

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Lebanese president orders army to confront Israeli incursions after deadly raid

IDF says it was attacking Hezbollah infrastructure when it fired at a ‘suspect’ and the incident is under review

Israeli troops have killed a Lebanese municipal worker while carrying out a raid in the south of the country, prompting Lebanon’s president to order the army to confront future incursions.

Lebanese state media identified the slain man as Ibrahim Salameh, an employee of the Blida municipality, a village near the border with Israel. The Israeli military confirmed the raid and said it was attacking Hezbollah infrastructure when it fired at a “suspect”. It said the incident was under review.

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Hamas and Hezbollah among groups relisted by Australia for counter-terrorism sanctions

Total of 33 groups and 10 individuals face continued financing sanctions as government adds new ‘entity linked to Hamas’

A trio of extremist organisations including Hamas, along with other entities and individuals, have been relisted for counter-terrorism financing sanctions.

Palestinian groups Hamas and Palestinian Islamic Jihad, and Lebanese group Hezbollah, along with 30 other entities and 10 individuals, have been relisted by the federal government for sanctions.

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Israeli-Russian graduate student freed after 903 days in Hezbollah captivity

Elizabeth Tsurkov, who entered Iraq to do research for Princeton, had gone missing in Iraq in early 2023

Israeli-Russian academic and Princeton student Elizabeth Tsurkov has been released after being kidnapped by Kata’ib Hezbollah and spending more than two years in captivity, Donald Trump said in a post on social media.

“I am pleased to report that Elizabeth Tsurkov, a Princeton Student, whose sister is an American Citizen, was just released by Kata’ib Hezbollah (MILITANT Hezbollah), and is now safely in the American Embassy in Iraq after being tortured for many months. I will always fight for JUSTICE, and never give up. HAMAS, RELEASE THE HOSTAGES, NOW!” the US president wrote in a TruthSocial post on Tuesday.

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UN to end Lebanon peacekeeping mission next year after Israeli and US pressure

Unifil mandate extended but troops patrolling Lebanon-Israel border to be withdrawn in December 2026

The UN security council has voted to extend the body’s peacekeeping mission in Lebanon for a further 16 months, but ordered it finished at the end of 2026 under Israeli and US pressure.

UNSC members voted unanimously on Thursday to extend the mandate for the UN interim force in Lebanon (Unifil) ahead of its expiration on Sunday, prompting relief from Lebanese officials who rely on it. The approved resolution said Unifil would begin an “orderly and safe withdrawal” of its 10,800 peacekeepers from Lebanon in December 2026.

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Iran’s proxy militias may be unable to help if Tehran opts to hit back at US

Weakening of ‘axis of resistance’ forces leaves Iran with limited options if it chooses to retaliate

Iran’s proxy militias across the Middle East have yet to retaliate for the overnight strikes against the Islamic Republic and are sending mixed signals about their willingness to strike US targets – or even Israel – in the coming days.

The apparent reluctance or inability of such groups to come to Iran’s aid will limit Tehran’s options if decision-makers there opt to escalate the conflict with the US.

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Israeli airstrike hits Beirut suburb despite ceasefire with Hezbollah

Army spokesperson says storage sites housing militant group’s missiles were destroyed in Dahiyeh in south of the city

Israel conducted an airstrike on a residential neighbourhood of Dahiyeh in the southern suburbs of Beirut on Sunday afternoon despite a November ceasefire that officially ended fighting with the militant group Hezbollah.

Videos showed three bombs hitting a building in Dahiyeh and rescue crews working to extinguish blazes after the blast; however, no casualties were reported. The Israeli military issued an evacuation warning before the bombing, prompting panic as residents fled the area.

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Israel restarts ground operations in northern Gaza Strip in renewed campaign

At least 25 killed in attack on Khan Younis in south as Israel says it is aiming to pressure Hamas into releasing hostages

Israel has restarted ground operations in the northern Gaza Strip and killed at least 25 people in airstrikes on the southern city of Khan Younis in what it says is a renewed military campaign aimed at pressuring Hamas into releasing Israeli hostages.

At least 25 people were killed in the attack on Khan Younis early on Friday, the local Nasser hospital told AFP, as the search for survivors continued.

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