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Iran news LIVE updates: The war has rattled energy markets since it started at the end of February, with the near-closure of the Strait of Hormuz causing a sharp drop in flows from major oil and gas producers in the Persian Gulf. | World News

Gulf nations grapple with war and peace as Iran's Strait of Hormuz blockade cripples energy exports. Infrastructure damage requires extensive repairs. Stalled talks threaten economic recovery and diversification ambitions. Analysts warn of Gulf states struggling to influence US decisions on war and peace. Unpaid leave and salary cuts are reported. Half of Gulf countries expect economic contraction.

The Strait of Hormuz, a key energy chokepoint, has become a major flashpoint since the outbreak of the Middle East war on February 28.

Sources mentioned that military action alone may not be enough to immediately reopen the strait, with shipping operators still wary of the risks.

Donald Trump says he personally kept the Strait of Hormuz closed to pressure Iran, claiming total control and tying reopening to a "very positive" deal in ongoing talks

Iran's central bank has confirmed receiving transit fees for ships in the Strait of Hormuz. The revenue was deposited in cash currency. Iran's Deputy Parliament Speaker stated the tolls are a rightful fee for using Iranian territorial waters. He also warned of consequences for aggressive US policies.

Air defences engaged "hostile targets" in Tehran amid rising tensions. Israel warned of retaliation, while Iran set conditions for reopening the Strait of Hormuz.

Trump's remarks come as a second round of peace talks between the US and Iran is expected to take place soon, with Pakistan trying to bring both sides to negotiate. On Wednesday, Trump indicated that a fresh round of negotiations could happen within "48 to 72 hours".

The US Department of War on Wednesday (local time) announced that Secretary of the Navy John C Phelan is stepping down with immediate effect, with Hung Cao set to take over as Acting Secretary of the Navy.

Iran's leverage over the Strait of Hormuz gives it power during a shaky ceasefire because the widening economic risks - especially higher US gas prices in an election year - could force Trump's Republican administration to end its blockade on Iran's ports and coastline, experts say