HEADLINES

• President Donald Trump said the US has had good and productive conversations with Iran and he will order the military to postpone any military strikes against Iranian power plants and energy infrastructure for five days. READ MORE BELOW

• Earlier, Iran said it would attack Israel's power plants and those supplying US bases across the Gulf region if Trump carries out his threat to "obliterate" Iran's power network, the Revolutionary Guards said in a statement. 

• Iran's Tasnim news agency, citing an Iranian official, said that the strait of Hormuz will not return to pre-war conditions and energy markets will remain unsettled, adding that no negotiations with the US are under way. READ MORE BELOW

• China has urged all parties involved in the Middle East conflict, particularly the US and Israel, to cease military operations, warning of a "vicious cycle". READ MORE BELOW

• Israel said on Monday its own forces had misfired artillery that killed 60-year-old Israeli avocado farmer Ofer Moskovitz near the Lebanese frontier.

• Saudi Arabia and the United Arab Emirates repelled fresh attacks, while sirens sounded in Bahrain.

• Abu Dhabi authorities said an Indian national had been wounded by falling debris from an intercepted ballistic missile.

• Israel's military said it launched "a wide-scale wave of strikes" on Tehran.

• Lebanese Prime Minister Nawaf Salam said members of Iran's Revolutionary Guards are commanding Hezbollah's operations in the group's war against Israel.

• The crisis in the Middle East is "very severe" and worse than the two oil shocks of the 1970s put together, International Energy Agency boss Fatih Birol said on Monday.

• Russia opposes any blockade of the Strait of Hormuz but says such issues must be viewed in the context of the broader global situation, Interfax reported on Monday, citing the Russian Foreign Ministry.

• The Swedish government plans to compensate households for higher electricity costs and to cut the tax on petrol and diesel amid soaring oil prices as developments in the Middle East rock markets, Prime Minister Ulf Kristersson said.

• UK Prime Minister Keir Starmer summoned a national emergency meeting on Monday to deal with the economic fallout from the escalating war in Iran, as Britain's government borrowing costs surged to their highest level since the global crisis of 2008.

• Starmer insisted there had been no assessment that mainland Britain was being targeted by Iran.

• The European Union's gas coordination group will meet on Thursday to assess the impact of the Iran war on Europe's gas supplies, a European Commission spokesperson announced.

IN DETAIL

Trump backs down on power network threat

US President Donald Trump backed down on targeting Iran's power network on Monday, saying the US and Iran have held constructive talks and that he would postpone any strikes on power plants and energy infrastructure.

Trump's statement came after Iran threatened to attack Israel's power plants and those supplying US bases across the Gulf region if the US targets Iran's power network.

Conversations with Iran will continue throughout the week, Trump said in a social media post.

The dollar plunged and stocks surged following Trump's post.

The United States and Iran "have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East," Trump wrote in a post on Truth Social.

"I have instructed the Department of War to postpone any and all military strikes against Iranian power plants and energy infrastructure for a five-day period, subject to the success of the ongoing meetings and discussions."

On Saturday, Trump warned that Iranian power plants would be destroyed if Tehran failed to "fully open" the Strait of Hormuz to all shipping within 48 hours. Trump set a deadline of around 7:44 p.m. EDT (2344 GMT) on Monday.

Iranian attacks have effectively closed the Strait, which carries a fifth of global oil and liquefied natural gas.

No negotiations underway, says Iran 

Iran's Tasnim news agency, citing an Iranian official, said that the strait of Hormuz will not return to pre-war conditions and energy markets will remain unsettled, adding that no negotiations with the US are under way.

Tasnim said Trump backed down from attacking critical Iranian infrastructure amid financial market pressure, warning Tehran would continue to defend itself until it achieves deterrence.

End 'vicious cycle' says China

China has urged all parties involved in the Middle East conflict, particularly the US and Israel, to cease military operations, warning of a "vicious cycle".

"The one who tied the bell must be the one to untie it," said Chinese special envoy to the Middle East Zhai Jun at a briefing after his shuttle-diplomacy trip that included stops in Saudi Arabia, the United Arab Emirates and Kuwait.

China will maintain close communication with all parties concerned and make unremitting efforts to ease tensions and promote regional peace and stability, he said.

In a separate briefing, foreign ministry spokesperson Lin Jian cautioned that the use of force would only lead to a "vicious cycle" and that the war should not have been started.

"Should the hostilities continue to spread and intensify, the entire region will be plunged into chaos," he said.

China is relatively better positioned to absorb higher oil prices with coal accounting for about 60% of its energy mix, ample oil stockpiles and imports via the Strait of Hormuz, representing only around 5% of total energy consumption.