- Oil down, stocks up -

Oil prices fell five percent and stock markets advanced as Iran said it had allowed around two dozen ships to transit the Strait of Hormuz, easing concerns about the apparent impasse on ending the war in the Middle East.

Yields on US Treasury bonds tumbled Wednesday after President Donald Trump said American negotiators were close to a potential peace accord with Iran.

- Iraq told to prevent attacks -

The UAE demanded that Iraq "immediately" prevent further attacks from its territory, following an accusation by the Emirates that a drone targeting a nuclear plant was launched from there.

The foreign ministry called on "Iraq to prevent all hostile acts originating from its territory urgently and without conditions".

- Israel army on top alert -

Israel's army chief Lieutenant Colonel Eyal Zamir said the military was at its highest alert level, as Tehran and Washington traded threats of war.

"At this moment, the IDF (military) is on the highest level of alert and prepared for any development," Zamir said at a meeting of all division commanders, according to a statement issued by the military.

- 'US trying to start new war' -

Iran's chief negotiator Mohammad Bagher Ghalibaf said the United States was seeking to restart the war and hoping the Islamic republic would surrender.

"The enemy's movements, both overt and clandestine, show that despite economic and political pressure, it has not abandoned its military objectives and is seeking to start a new war," Ghalibaf said in an audio message on his official website.

- UN warning on food crisis -

The UN Food and Agriculture Organization (FAO) warned that the blockage of the Strait of Hormuz could "trigger a severe global food price crisis" in the coming months.

Hormuz accounted for a fifth of global oil shipping before the US and Israel launched strikes against Iran, which prompted Tehran to effectively shut down the strait to tanker and cargo traffic.

A third of the world's fertiliser supply also passed through the strait before the war, and officials have warned that farmers could face shortages during the summer growing season.

- 26 ships crossed Hormuz -

Iran's Revolutionary Guards navy said they allowed over 25 vessels including oil tankers to transit the Strait of Hormuz over the past 24 hours.

"Over the past 24 hours, 26 vessels -- including oil tankers, container ships and other commercial vessels -- transited the Strait of Hormuz," said the Guards' navy in a post on X.

It added that the ships passed after "coordination and security provided by the IRGC navy".

- Pakistan minister in Tehran -

War mediator Pakistan's interior minister Mohsin Naqvi headed to Iran for the second time this week amid an impasse between Tehran and Washington over a proposal to end the conflict, Iranian state media reported, citing diplomatic sources in Islamabad.

Naqvi had been in Tehran on Saturday to "facilitate" the process between Tehran and Washington, according to Iranian media.

- Jordan shoots drone -

The Jordanian military announced it had shot down a drone of unknown origin in its airspace. No casualties were reported.

"This morning, the Jordanian Armed Forces engaged with a drone of unknown origin that entered Jordanian airspace and was brought down in Jerash Governorate, without any injuries," the military said of an area located around 50 kilometres (30 miles) north of the capital Amman.

burs-ach/phz