Here are the latest developments:

- Iran 'trying' to appoint next Khamenei -

Iran is "trying" to quickly appoint a successor to Ayatollah Ali Khamenei as supreme leader, despite the ongoing US-Israeli bombardment, state TV reported.

"God willing, the leader will be appointed at the earliest opportunity. We are close, but the situation is a war situation," said Ahmad Khatami, a member of the assembly responsible for selecting a new leader.

The late ayatollah was killed in the US-Israeli strikes that sparked the war on Saturday.

- Israel enters Lebanon -

The Israeli army entered the southern Lebanon town of Khiam, Lebanese state media reported on Wednesday, as part of a ground incursion against Iran-backed Hezbollah militants.

In parallel, Israel's expanded campaign of strikes in Lebanon killed at least 11 people, including in areas outside Hezbollah's traditional strongholds, according to officials and state media.

- Drone targets Saudi oil -

Saudi Arabia intercepted a drone attack targeting its massive Ras Tanura refinery, the defence ministry said, following an earlier hit on the complex this week.

- Cosco halts Gulf shipping -

Chinese shipping giant Cosco, which operates one of the world's biggest oil tanker fleets, said it is suspending from Wednesday services to and from countries including the UAE, Bahrain, Saudi Arabia, Iraq and Kuwait.

- Hezbollah hits Israel -

Hezbollah said it had targeted the headquarters of Israel Aerospace Industries, in central Israel, overnight with a drone attack and had also launched a missile at a drone control base.

- Iran still a threat: Israel -

The Israeli military said Iran still has significant capacity to launch missiles at Israel, even as it continues to strike missile launchers in the Islamic republic.

In a separate statement, the military said it had struck overnight a facility "for the storage, production, and launch of ballistic missiles -- including Ghadr missiles -- in Isfahan in western Iran".

- Iran says ready for long haul -

Iran has no intention of negotiating with the United States and can continue the war for "as long as we want", Mohammad Mokhber, a senior aide to late supreme leader Ayatollah Ali Khamenei, told state TV.

- More Israeli strikes in Tehran -

The Israeli military said it had begun a fresh wave of strikes on Tehran, as an AFP journalist reported a fresh explosion in the northeast of the Iranian capital.

The army said it had struck "dozens" of targets, including security command centres in Tehran, and had shot down an Iranian fighter jet over the capital.

- Iranian frigate sinks off Sri Lanka -

Sri Lanka said an Iranian navy frigate with 180 crew sank just outside the island's territorial waters after an explosion.

No information was immediately available on the cause.

The Sri Lankan foreign minister said 32 "critically wounded" sailors had been rescued from the warship. A search for remaining crew was ongoing.

- Spain PM hits back at Trump -

Spanish Prime Minister Pedro Sanchez hit back at President Donald Trump's criticisms of Madrid's refusal to let US planes use its bases to attack Iran.

"No to war," he said, a day after Trump threatened to sever all trade with Spain.

- Canada questions US-Israeli strikes -

Canada's Prime Minister Mark Carney said the US-Israeli strikes on Iran "would appear, prima facie... to be inconsistent with international law".

- Guards claim control of Hormuz -

The Revolutionary Guards said Iranian forces had "complete control" of the Strait of Hormuz, a vital route for world oil and gas supplies, and any vessels seeking to pass risked damage from missiles or stray drones.

Trump said Tuesday the US Navy was ready to escort oil tankers through the crucial Gulf shipping route.

- Khamenei funeral set -

Iran will hold a three-day state funeral starting on Wednesday evening for Khamenei, state TV said.

After the funeral's announcement, Israel's defence minister warned that any successor would be a "target for assassination".

- Stocks tumble -

The Dubai and Abu Dhabi stock exchanges reopened sharply lower after a two-day trading suspension over Iran's missile and drone attacks across the Gulf.

Stock markets across Asia were pummelled as panic-selling spread, with Seoul shares collapsing more than 12 percent. Oil rose.

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