Rachel Clun
Business reporter

The price of oil has fallen following the cancellation of fresh US strikes on Iran.

Brent crude, the global benchmark for oil, plunged below $90 a barrel following President Donald Trump’s announcement that he had called off the strikes.

It has since recovered slightly, hovering around $90.4 a barrel to be down 2.6% on the day.

The price of oil has been below $100 a barrel since the last week of May, but it remains much higher than before the US and Israel war with Iran began - in the lead up to the conflict, Brent was trading at about $70 a barrel.

A deliberate strategy, or a flip flop from Trump?published at 20:00 BST

20:00 BST

Gary O'Donoghue
Chief North America correspondent

There’s a live debate here in Washington about whether Donald Trump’s mixed messaging on Iran is a deliberate strategy, designed to keep the Iranian regime guessing – or simply a flip flop.

If it is meant as a pressure tactic, it doesn’t seem to have worked over the 104 days since the conflict began.

For weeks, the president has repeatedly said that a deal was imminent. I remember talking to a senior administration official last month, who told me it was probably 24 hours away.

It's curious that Trump's latest post goes a step further, with the mention of a time and place of signing to come shortly.

That's promising a little bit more than we've had before.

Even so, these things can turn in a moment, and there is still the risk of a fresh tit-for-tat escalation.

Image source, Getty Images

Earlier today, US President Donald Trump vowed to hit Iran "very hard" tonight. An hour ago, he said that he has "cancelled the scheduled strikes and bombings".

Here's a look back at what he's said throughout the day:

Fresh threats: Trump earlier warned the "US will be hitting Iran VERY HARD TONIGHT", in a post on Truth Social.

Taking Kharg Island: In the same post, Trump said the US will be "taking Kharg Island", a major oil terminal off the coast of Iran, "in the not too distant future". He also said the US would "assume total control of their oil and gas markets".

Not sure US has the stomach: The US president raised doubts over his threat to seize Kharg Island. He told Fox News he's not sure the US "has the stomach" to engage in such a military operation.

Strikes cancelled: In his latest Truth Social post, Donald Trump said he had cancelled strikes against Iran tonight.

Signing to be announced shortly: Trump, without providing more detail, said final points" have been approved "in both concept and great detail", by all parties, including Israel, Pakistan, and other Arab and Gulf countries. "Time and place of the signing to be announced shortly," he said.

Blockade remains in full force: However, he said the naval blockade of Iran's ports would "remain in full force and effect" until "this transaction is finalized".

Trump's confusing message raises fresh questionspublished at 19:20 BST

19:20 BST

Daniel Bush
Washington correspondent

President Donald Trump's mixed messaging on Iran continued Thursday with a confusing social media post in which he called off new air strikes and appeared to promise that a deal to end the war was close at hand.

Trump has been teasing a deal for months, all while threatening to escalate the war. The approach hasn't worked so far, as Iran hasn't shown any willingness to bend to Washington's demands to give up its nuclear programme.

What Trump hoped to accomplish with his latest Truth Social message is unclear.

He left key details unanswered and raised fresh questions about the state of the negotiations, which have been stalled for weeks over the nuclear programme and other issues.

Trump said that "final points" had been agreed to "both in concept and great detail" but didn't specify what they were.

He claimed the plan was approved by the US and numerous countries across the Middle East -- but didn't include Iran on the list.

The president also said plans for a signing ceremony for the deal would be announced "shortly".

He's made that promise several times before, in what has become a pattern for communications out of a White House that is struggling to find a way to wind down the war.

Image source, Getty Images

Donald Trump, in his latest Truth Social, says he has cancelled strikes on Iran tonight and that "final points have been, in both concept and great detail, approved by all parties involved".

We're yet to hear from Iran, or any of the other countries Trump cites in his post.

The US president adds, though, that the US naval blockade on Iranian ports in the Strait of Hormuz will "remain in full force".

What is the naval blockade?

It is a US operation to stop ships from entering and leaving Iranian ports as a means to restrict Tehran's ability to profit from oil exports.

US forces are likely to be using satellite and commercial intelligence to monitor which ships are leaving Iranian ports, and waiting for them to sail into the open Indian Ocean before intercepting them.

It began on 13 April in retaliation to restrictions on the Iranian-controlled Strait of Hormuz, a vital global shipping route that sees 20% of oil and natural gas pass through.

• A very quick guide to the Strait of Hormuz

US President Donald Trump has just posted on Truth Social:

Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening.

Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others.

The Naval Blockade will remain in full force and effect until this Transaction is finalized — Time and place of the signing to be announced shortly.

DONALD J. TRUMP

PRESIDENT OF THE UNITED STATES OF AMERICA

Image source, Reuters

The EU's foreign policy chief has described renewed attacks on Gulf states as "unnacceptable" in a call with her Iranian counterpart Abbas Araghchi.

In a post on X, Kaja Kallas says "the resumed attacks on the Gulf countries and their critical infrastructure are unacceptable".

"A return to full-scale war would come at a tremendous cost to the entire region. The diplomatic route remains the best path out of this war."

Earlier Araghchi said he condemned US "aggression" in the phone call with Kallas, which took place this morning.

Araghchi said he told Kallas that recent US strikes were a "violation of international law" and rendered the ceasefire "ineffective".

Image source, EPA/ Shutterstock

Image source, EPA

Iran's top joint military command warns the US will receive a response "more severe than before" if it tries to carry out further attacks against Iran.

It says the US talks about a deal but then commits acts of aggression, which it calls a "blatant contradiction".

US President Donald Trump said earlier the US will hit Iran "very hard" tonight, and vowed to "assume total control" of Iran's oil and gas markets in the "not too distant future".

Following Trump's threats, Iran's top military command warns "either oil and gas exports are for everyone or they will be for no one".

Image source, AFP via Getty Images

UN Secretary-General Antonio Guterres is "deeply concerned" by the continuing escalation in the Middle East, including both US and Iranian strikes, his spokesperson says.

Guterres urges the parties to return to a "full implementation of the ceasefire" and to uphold obligations under international law to protect civilians.

His spokesperson adds that he calls on the US and Iran to "redouble efforts towards a peaceful, comprehensive and durable agreement" for regional and international peace.

Image source, Iranian Parliament Speaker Office/Reuters

A senior Iranian official has warned the US against being sucked into an "endless quagmire".

Mohammad Bagher Ghalibaf, Iran's parliamentary speaker and chief negotiator, says in a post on X that "wrong strategies and impulsive decisions will reset the entire board for the worse".

He says these decisions could "explode energy infrastructure and markets", creating an "endless quagmire that you will be stuck in for years".

"You will see a different Iran," he concludes.

It comes after threats by US President Donald Trump to hit Iran "very hard tonight" and seize Kharg Island.

Image source, Reuters

Any damage caused by Iran against US allies will be paid for by funds "extracted from Iranian accounts", US Treasury Secretary Scott Bessent says.

In a post on X, Bessent says any tolls paid to the Persian Gulf Strait Authority - a new body set up by Iran to control the Strait of Hormuz - "will be offset by [Iranian] funds".

He continues: "Every attack Iran launches will only deepen the economic and financial consequences it faces."

Earlier today, Iran lauched a series of attacks against US assets in Jordan, Bahrain and Kuwait. This came after a series of US strikes in southern Iran.

It is highly questionable whether US could seize Kharg Islandpublished at 16:12 BST

16:12 BST

Frank Gardner
Security correspondent

Image source, EPA

If the US does decide to invade Kharg Island then it would most likely be a temporary measure intended to put pressure on Iran by cutting off its fuel exports until it relinquished its chokehold on the Strait of Hormuz - one of the world's busiest oil shipping lanes - and conceded to Washington's demands.

Given the resilience and defiance of the Iranian regime it is highly questionable whether this would work. Iran is believed to have reinforced its defences on the island, including with surface-to-air missile batteries.

In theory, US paratroopers could make an airborne assault, probably at night, to seize key positions on this small island, which measures just 20 sq km (7.7 sq miles).

The US Marines would deploy from ships equipped with Osprey tilt-rotor aircraft and Landing Craft Air Cushioned (LCAC) for making amphibious landings. But first those ships would have to run the gauntlet of getting through the Iranian-controlled Strait of Hormuz and then sailing all the way up the Gulf past any number of hidden Iranian drone and missile launch sites.

Any landing, by air or sea, would expect to be met with anti-personnel mines and swarms of drones. Such is the awesome fighting power of these Marine Expeditionary Units (MEUs) that the US force would almost certainly prevail, but it could come at the expense of a severe number of casualties.

The US then has the problem of holding the ground, for an indeterminate period, while subject to bombardment from the Iranian mainland.

You can read a longer version of this analysis on Kharg Island, which was published in March, here.

A negotiating team from Qatar held meetings in the Iranian capital Tehran into the early hours of this morning, according to reports.

A Qatari official tells the BBC’s US news partner CBS News that the negotiating team has since returned to Doha as diplomatic efforts continue.

Qatar has condemned Iranian attacks on Jordan, Bahrain and Kuwait, which came after US strikes in Iran. It has served as a mediator between the US and Iran, and called for work towards de-escalation.

A spokesman for Pakistan’s foreign ministry also told reporters earlier today that the country’s interior minister had held “important meetings” with senior leaders in Iran this week.

Trump's comments reignite speculation of a US ground operationpublished at 15:40 BST

15:40 BST

Tom Bateman
US State Department correspondent

Trump’s vow to “take” Kharg Island will reignite the fevered speculation during the war itself that a US ground operation could be imminent.

It will also spark furious denunciations in Tehran.

As ever with Trump, it’s impossible to know if it’s a genuine plan or bluster aimed at bullying his adversaries into capitulation.

We do know that the US 82nd Airborne Division remains in the region because US Central Command referenced their involvement in this week’s rescue of an Apache helicopter crew.

Such an airborne elite infantry unit could be an essential component to any land-based operation.

But within a few minutes of his social media post, Trump appeared on Fox News seeming to contradict the more definitive tone of his earlier statement.

He said, instead, that his “preference” had always been “to take Kharg Island” which he said could make a “fortune” for the US (meaning in oil revenues), but that he doubted the American people had “the stomach for it” - whilst also saying he "does not want to have to put boots on the ground".

We can now bring you more comments from US President Donald Trump, who has been speaking to American media outlets about the war in Iran.

He tells Fox News that the US "dropped $250m (£187m) worth of bombs" on Iran last night and reiterates his threat to take Kharg Island.

But he raises doubts about whether the US "has the stomach" to engage in such a military operation.

"I'm not sure the country has the appetite for it, as good as it is," he says on a phone call.

Nabiha Ahmed
Live reporter

Image source, ISNA/Reuters

In his latest threat of escalation, Donald Trump has said the US will hit Iran "very hard" tonight.

The US president has threatened to "assume total control" of Iran's oil and gas markets, and seize Kharg Island in the "not too distant future". Why is Kharg Island important?

His comments come after the US Central Command confirmed it had struck a third ship in the Gulf of Oman this week, claiming the Guinea-Bissau-flagged vessel Jalveer "violated" the US blockade of Iranian ports in the Strait of Hormuz.

Earlier, an Indian official confirmed three Indian sailors had been killed in a "deeply unfortunate" US strike on the Palau-flagged Settebello off the coast of Oman. "Everything was alright when we last spoke," says a father of one of the deceased sailors.

Iran's foreign ministry says the US's actions render the ceasefire “practically meaningless”. Iran has been targeting US military assets across the Gulf region - local authorities say an 11-year-old girl was injured in an Iranian drone attack on Bahrain this morning.

Several countries - including Pakistan, Russia and China - have reiterated their calls for de-escalation between Iran and the US.

Chances of a deal may be even slimmer nowpublished at 14:52 BST

14:52 BST

Sebastian Usher
Global affairs correspondent, reporting from Jerusalem

The US strategy right now appears to be to ratchet up its strikes on Iran day by day, without resuming all-out war. Iran has been responding in kind.

The country's foreign ministry has said that at this point the ceasefire has been rendered "practically meaningless".

Arab Gulf states are again being put back on the frontline of the conflict, as Iran has been trying to hit US military bases that they host.

In recent weeks, the Iranian regime appears to have been capitalising on Trump's reluctance to go back to war, but his mood may once again be changing.

Nevertheless, mediators from Qatar and Pakistan are still trying to nail down a deal.

The chances may be even slimmer now.

Jemma Crew
Business reporter

The price of oil rose by about $2 after US President Donald Trump promised to hit Iran "very hard" with fresh strikes, and take control of its oil and gas markets.

Brent crude futures increased to $94.16 a barrel in the space of a few minutes this afternoon, before falling back slightly.

"At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets, much like we have with Venezuela, which is working out brilliantly for both Venezuela and the United States of America," Trump wrote on Truth Social. You can read the post in full here.

Earlier on Thursday, the oil price had been on a downward tilt from a high of just over $95 just after 01:00 BST, to just under $92 by mid-morning in the UK.

Explosions have been heard in the vicinity of the Iranian city Sirik, which borders the Strait of Hormuz, Iran's semi-official news agency Mehr reports.

The BBC has not independently verified this report, and neither the US nor Iran have commented directly on if strikes were carried out.