Before the conflict began, inflation was at 2.4%, but the closure of the strait of Hormuz has affected energy prices

US inflation jumped to an annual rate of 4.2% in May, the third consecutive monthly increase since the start of the Iran war and a three-year high, as Americans continue to face steep oil prices.

Prices have increased sharply over the past several months, rising at an annual rate of 3.3% in March before going up to 3.8% in April. In February, before the conflict began, inflation was at 2.4%.

US launches strikes in retaliation for downing of US army helicopter, while White House source says deal could still be close

The future of peace talks in the Middle East have been thrown into question after Iran’s foreign ministry said it needed to “reassess” its participation, while Donald Trump said Iran would have to “pay the price” after the two countries traded fire overnight, drawing neighbouring states back into an on-and-off war that has consumed the region since late February.

The US launched strikes against Iran in the early hours of Wednesday morning in retaliation for what it said was Iran’s downing of a US army helicopter near the strait of Hormuz. Iran then launched a wave of retaliatory airstrikes claiming hits on US bases in Kuwait, Bahrain and Jordan.

New social media threat comes as US military has been striking Iranian targets, including air defences and radar sites

• Trump launches strikes against Iran after downing of US army helicopter

If the US genuinely wants a deal it will have to engage with Iranian demands on sanctions relief, says Danny Citrinowicz, the former head of the Iran branch of Israeli military intelligence.

Today’s exchange of strikes shows how easily both Iran and the US can slide towards another round of escalation, says Citrinowicz, who is now a nonresident fellow at the Atlantic Council.

If Washington is unwilling to accept that reality, it should recognize the likely alternative: continued confrontations with Iran that could eventually spiral beyond anyone’s control and lead to military conflict under less favorable conditions.

Even a limited military campaign designed to weaken Iran would not fundamentally alter Tehran’s negotiating position. It has not happened in the past, and there is little reason to believe it would happen now. Iran emerges from the latest exchange of blows convinced that it can absorb pressure and respond to attacks.”

Legal and moral responsibility of all countries in the region (especially those located along the southern shores of the Persian Gulf) to prevent the US military and Israel from using their territory or facilities to plan, organise, execute, or support hostile actions against Iran.

Vice-president says deal could ‘absolutely’ come before midterms, as US strikes Iran after downing of helicopter

• Middle East crisis – live updates

The US-Israel war on Iran could conclude in a week or a few months, vice-president JD Vance has said, as the downing of a US army helicopter sparked the latest flare-up in the conflict.

In the latest vague assessment from the Trump administration on the future of its controversial war, Vance claimed the US is “very close to achieving” a peace deal with Iran, adding that it could “absolutely” come before the midterm elections.

Recent exchange of missiles between Iran and Israel highlights diverging views between US president and Israeli PM

The latest eruption of hostilities between Iran and Israel appears to have been contained for now after Donald Trump insisted he called “all the shots” in the Middle East, but in a dangerously fragile region Benjamin Netanyahu has again shown he is ready to take shots of his own.

The exchange of missiles on Sunday and Monday was ample demonstration of the inherent instability of the current limbo between war and peace, but it also shone a bright light on the complex and conflicted relationship between the US president and the Israeli prime minister, frenemies who could determine the fate of the current ceasefire.

Netanyahu acknowledges pause in fighting in TV speech but vows forceful response to future attacks

Fears of a return to a full-scale regional war in the Middle East eased on Monday as Israel and Iran said they had halted attacks on each other after an appeal from Donald Trump to “immediately stop shooting”.

Benjamin Netanyahu, Israel’s prime minister, acknowledged the halt in fighting with Iran in a televised speech, but vowed to respond “with force” to future attacks.

Arch-enemies Israel and Iran have returned to active confrontation while Donald Trump tries to present himself as mediator

Israel and Iran have returned to active war for the first time since a ceasefire was agreed two months ago in an exchange of rocket fire that threatened efforts to end the conflict.

Donald Trump, who started the war in February alongside Israel but has since attempted to present himself as a mediator, told the two sides to stop shooting and said “final negotiations” on peace were proceeding. By late afternoon on Monday, the attacks had stopped.

This live blog is now closed. For the latest, read more of our coverage on the Middle East conflict here.

Iranian media is reporting that there were no immediate casualties following apparent Israeli strikes on the Karun petrochemical plant in Mahshahr, a city in Iran’s southwestern Khuzestan province.

According to the Fars news agency, Iran’s Revolutionary Guards said they responded to what they described as an American-Israeli strike on the Iranian petrochemical site by launching a missile attack on a similar plant in the northern Israeli city of Haifa.

Attacks raise fears of return to full-scale regional war and come after Trump says ‘I call all the shots’, not Netanyahu

• Middle East crisis – live updates

The Israeli military has launched airstrikes on Iran after the Iranians fired missiles at northern Israel in the first exchange of fire between the two countries since a ceasefire was reached on 8 April, raising fears of a return to a full-scale regional war in the Middle East.

Yemen’s Iran-aligned Houthi rebels also fired at Israel and warned they would target Israeli-affiliated ships in the Red Sea, further escalating tension.

Potential proposal would secure control of Diego Garcia base amid stalled UK plans to cede sovereignty of territory

Donald Trump is reportedly weighing a plan to buy the Chagos Islands from Mauritius amid stalled plans from the UK to cede sovereignty of the territory, the Telegraph first reported.

The White House did not respond to the Guardian’s request for comment on the report about the potential plan.

Tehran official had promised ‘decisive and painful’ reply to Israeli bombing of apartment buildings in Beirut’s southern suburbs

• Middle East crisis – live updates

Iran launched missiles at Israel on Sunday in response to Israeli strikes on Beirut’s southern suburbs, shattering a fragile ceasefire and marking the most serious escalation since April, after 100 days of war.

A senior Iranian official has promised a “decisive and painful” response to Israel’s airstrikes on the southern suburbs of Beirut and, a few hours later, sirens sounded across northern Israel.

This blog is now closed – our live coverage of the Middle East crisis continues here

Donald Trump also aggressively pushed back against claims that he broke a key campaign promise to keep the US out of new foreign conflicts.

“Well, well, first of all, I didn’t guarantee no war,” Trump said during the Meet the Press interview. “Why would I have built the strongest military in the world?”

Legal papers, expert investigations and social media posts tell story of how a 32-year-old Iraqi appeared to run ‘proxy’ campaign

On Monday, a slightly dishevelled Iraqi man, shackled and dressed in beige prison overalls, was ushered into a Manhattan courtroom.

Mohammad Baqer Saad Dawood al-Saadi, 32, pleaded not guilty to a series of terrorism-related offences, then gestured toward the judge and prosecutors. “I’m a prisoner of war. I’m not a threat,” he told them. “Children and women are being killed by your rockets.”

Oil tankers may be stuck behind strait of Hormuz, but holding the Iata AGM in Brazil defies warnings of impending shortages

Nothing says jet fuel crisis, as one prospective attender put it, like flying everyone to Rio de Janeiro. Aviation leaders will converge in Brazil this weekend for the Iata AGM, the annual global airline summit, with the industry still, for the most part, looking resolutely skyward.

The oil tankers may still be stuck behind the strait of Hormuz as the conflict between the US, Israel and Iran flickers on, but for now, airlines continue to defy dire warnings of impending shortages which had stoked fears of a summer of chaos for European holidaymakers.