Iran says 'non-hostile vessels' can pass through Hormuz

Iran's mission to the UN says "non-hostile vessels" can pass through the Strait of Hormuz provided they coordinate with "the competent Iranian authorities" - the waterway is vital for global shipping.

Donald Trump insists talks with Iran continue - claiming Iran wants a deal "so badly", and saying it gave the US a "very big present worth a tremendous amount of money" on Tuesday.

Trump told reporters Iran was, in his words, "desperate" for a deal to end the war.

He insisted talks were under way, and added cryptically that the US had received an expensive gift from Iran, which, he said, showed that he was dealing with the "right people".

Who those people are, he again refused to say.

Tehran insists there are no such talks, and the president is simply seeking to steady nerves on the financial markets. But reports here and in Israel suggest the Trump administration has proposed a one-month ceasefire during which both sides would consider a 15-point plan aimed at addressing Iran's missile development - we'll have more on that soon.

Trump again surprised reporters by saying that Iran had already agreed to Washington's main demand - the dismantling of its nuclear weapons programme.

Pakistan - a key US ally in the region - is acting as mediator and has offered to host talks between the two nations, but as Trump reaches for a diplomatic solution some have suggested he may simply be "buying time" - with thousands more US troops currently on their way to the region.

Unconfirmed reports also suggest the US has handed over a 15-point peace plan - it includes Iran dismantling nuclear facilities, in exchange for lifting of sanctions.

At the same time, the Pentagon is preparing to deploy some troops to Iran, according to the BBC's US partner, CBS News - but it has not been reported precisely where or when, and the White House hasn't commented.

Israel and Iran are continuing to exchange strikes, while six people have been killed in southern Lebanon, according to state media.

Meanwhile, the oil price dipped early on Wednesday -but remains well above pre-war levels.