- Iran 'afraid' to admit talks? -

US President Donald Trump insisted that Iran was taking part in peace talks, suggesting Tehran's denials were because Iranian negotiators fear being killed by their own side.

"They are negotiating, by the way, and they want to make a deal so badly. But they're afraid to say it, because they figure they'll be killed by their own people," Trump told a dinner for Republican members of Congress.

- US targets missile capacities -

The United States has hit two-thirds of Iran's production facilities for missiles and drones, and a similar proportion of its naval production, a top officer said.

Admiral Brad Cooper, head of Central Command, also estimated that Iran's drone and missile launch rates were down by 90 percent, and "we've also removed the regime's ability to rebuild them."

- Iran FM: 'We do not intend to negotiate' -

Tehran's Foreign Minister Abbas Araghchi rejected Wednesday any diplomatic efforts to wind down the conflict.

"At present, our policy is the continuation of resistance," Araghchi said on Iranian state TV. "We do not intend to negotiate -- so far, no negotiations have taken place, and I believe our position is completely principled."

"Speaking of negotiations now is an admission of defeat," he said.

- Kuwait arrests six over Hezbollah 'assassinations' -

Kuwait arrested six people allegedly linked to the Iran-backed Hezbollah group in Lebanon who were planning "assassinations" in the Gulf state, the interior ministry said.

- 'Enemies preparing to occupy' Iran island -

Iran's powerful parliament speaker warned of the possible invasion of an Iranian island with the support of an unnamed regional country.

"Based on some intelligence reports, Iran's enemies are preparing to occupy one of the Iranian islands with support from one of the regional states," Mohammad Bagher Ghalibaf posted on X.

- Gulf issues Iraq demand -

Several Gulf countries, as well as Jordan, demanded in a joint statement that Iraq act immediately to stop attacks from its territory by armed pro-Iran groups.

The statement was signed by Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Jordan.

- US rejects Iran talks rejection -

The United States and Iran are still engaged in peace talks, the White House said, despite Iranian state media saying Tehran had rejected Washington's plan to end the war.

"Talks continue. They are productive," Press Secretary Karoline Leavitt said when asked about the Iranian report, adding that there were "elements of truth" to media reports on the details of a 15-point US plan setting out demands on Tehran.

- Trump threatens 'hell' if no deal -

US President Donald Trump is ready to "unleash hell" on Iran if Tehran does not accept a deal to end the war, the White House warned.

"President Trump does not bluff and he is prepared to unleash hell. Iran should not miscalculate again," Leavitt told a briefing.

- Israel expanding Lebanon 'buffer zone' -

Israeli Prime Minister Benjamin Netanyahu said his country's forces were expanding a "buffer zone" in southern Lebanon as the military pressed ahead with its campaign against Iran-backed Hezbollah.

Netanyahu said the zone had so far prevented any infiltration towards the northern border, and was being expanded "to push the threat from anti-tank missiles further away and to establish a broader buffer zone".

- Hormuz 'toll booth' legally risky -

Maritime trackers reported that a handful of vessels are still crossing daily through the Strait of Hormuz, which is guarded by Iran's Revolutionary Guard Corps (IRGC), with most of them leaving the Gulf.

Shipping journal Lloyd's List reported that the handful of vessels crossing daily through the strait were taking a new Iranian-approved route dubbed the "Tehran Toll Booth".

At least one vetted vessel paid $2 million to use the corridor around Larak Island just off Iran's coast, Lloyd's reported.

- Oil prices dip -

Oil prices tumbled and stock markets rallied on reports of a US plan to end the war with Iran, even though Tehran rejected Washington's overtures.

After nearly four weeks of conflict, investors jumped on signs that hostilities could be winding down, with the safe-haven dollar losing support.

However, analysts said the arrival of more US troops in the Middle East and new missile strikes between Iran and Israel suggested the chances of escalation remained.

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