Trump paused planned US military action, citing “productive” talks with Tehran. Washington extended a deadline to reopen a key oil shipping route, while Tehran denied any contact. The move aims to ease tensions as both sides weigh whether dialogue can prevent further escalation.

Iran warned it would target water infrastructure if the US hits its power plants, escalating a dispute over access to the Strait of Hormuz. Experts say striking essential services would harm civilians and likely breach international law, urging restraint to avoid wider disruption.

Trump criticised Nato allies over the Gulf crisis. The UK has begun contingency planning and authorised the use of its bases for operations against launch sites threatening shipping, amid warnings that energy and borrowing costs could rise.

Iran issued a fresh warning over Gulf shipping, heightening fears of an energy crunch. Delayed cargoes and higher risk premiums lifted oil and gas prices. Ministers and suppliers warned of pressure on bills, urging calm while contingency measures and diplomatic channels are pursued.