Iran sends missiles into Israel, dismisses Trump's talk of negotiations as 'fake news'

Iran launched multiple waves of missiles at Israel, after US President Donald Trump postponed the attack on Iran's power plants and energy infrastructure because of what he described as productive talks with Iranian officials.

The missiles triggered air raid sirens in parts of Israel, including Tel Aviv where blasts from interceptions were heard. In one attack, homes in northern Israel were damaged by falling debris following an interception. No deaths were reported.

Trump wrote on his Truth Social platform on Monday that the US and Iran had held "very good and productive" conversations about a "complete and total resolution of hostilities in the Middle East".

As a result, Trump said he was postponing for five days a plan to hit Iran's power plants, which he had threatened if Iran did not reopen the Strait of Hormuz. However, the pause only applies to Iran's energy sites and US strikes on the country continue, US news outlet Semafor reported, citing a American official.

Iran has effectively closed the key strait, a conduit for about 20 per cent of the world's oil and liquefied natural gas, since the US and Israel launched their war on February 28. More than 2,000 people have been killed in the war.

Iran responded to the threat, saying it would hammer infrastructure of US allies in the Middle East, raising the prospect of an extreme disruption to global energy supplies.

IRAN DENIES NEGOTIATIONS

Trump's step-back sent share prices higher and oil prices sharply lower to below $100 a barrel, a sudden reversal to a market swoon caused by his weekend threats and Iran's vows to respond. 

Those gains were in jeopardy on Tuesday, however, after Iran's powerful parliament speaker Mohammad Baqer Qalibaf - who an Israeli official and two other sources familiar with the matter said was the interlocutor in the talks on the Iranian side - said no negotiations had taken place.

"No negotiations have been held with the US, and fakenews is used to manipulate the financial and oil markets and escape the quagmire in which the US and Israel are trapped," he wrote on X.

Iran's elite Revolutionary Guards (IRGC) said they were launching fresh attacks on US targets, and described Trump's words as "psychological operations" that were "worn out" and having no impact on Tehran's fight.

On Tuesday, US Treasury yields pushed higher and the dollar regained lost ground as the world continues to grapple with an energy shock triggered by Iran's threat to shipping in the strait.

Brent crude futures LCOc1 were up 4.2 per cent to $104.21 a barrel, reversing some of their 10 per cent slide from Monday, while US crude CLc1 rose 4.3 per cent to $91.93 per barrel.

"The underlying situation is still incredibly fragile or flammable," said IG market analyst Tony Sycamore.