WASHINGTON/JERUSALEM/TEL AVIV: Iran launched waves ​of missiles at Israel on Tuesday, the ⁠Israeli military said, a day after U.S. President Donald Trump said there had been "very good and productive" talks aiming at halting the conflict raging across the Middle East.

Three senior Israeli officials, speaking on condition ‌of anonymity, said Trump appeared determined to reach a deal, but that they thought it highly unlikely that Iran would agree to U.S. demands in any new round of negotiations.

After Trump's Truth Social comment on Monday, Iran said no talks had yet been ​held. Iran's embassy in South Africa posted an image on X showing a child's pink steering wheel placed on a car dashboard in front of the passenger seat, apparently mocking Trump's idea, aired to reporters, that he could control the Strait of Hormuz ​alongside ​Iran's supreme leader.

Israeli Prime Minister Benjamin Netanyahu, who spoke to Trump less than 48 hours before their countries began the war, was expected to convene a meeting of security officials for talks on Trump's bid for a deal with Iran, two senior Israeli officials said.

A Pakistani official has said direct talks may be held in Islamabad this week.

The U.S. and Israel launched strikes on Iran on ⁠February 28 after saying they had failed to make enough headway in talks aimed at ending Iran's nuclear program, even though mediator Oman said significant progress had been made.

The crisis has escalated across the Middle East. Iran has attacked countries that host U.S. bases, struck key energy infrastructure and effectively closed the Strait of Hormuz, conduit for a fifth of the world's oil and liquefied natural gas.

AIR RAID SIRENS SOUND IN TEL AVIV

On Tuesday, Iranian missiles triggered air raid sirens in Israel's biggest city, Tel Aviv, where gaping holes were torn through a multi-storey apartment building. It was not immediately clear if the damage had been caused by a direct hit or debris from an ​interception.

Israel's Fire and Rescue Service said they ‌were searching for civilians trapped ⁠in one building in Tel Aviv and ⁠discovered civilians in a shelter in another damaged building.

Israel's military said its fighter jets had carried out a large wave of strikes in central Tehran on Monday, targeting key command centres, including facilities associated with the Islamic Revolutionary Guard Corps’ ​intelligence arm and the Intelligence Ministry. It said it had also hit more than 50 other targets overnight, including ballistic missile storage and launch sites.

Air defence systems were activated ‌across Tehran as explosions were heard simultaneously in several areas of the capital, according to the Iranian news agency Nournews.

Trump said on Monday ⁠he was postponing for five days a plan to attack Iran's power plants unless it reopened the Strait of Hormuz.

Iran had promised to respond to such attacks by hammering the infrastructure of U.S. allies in the Middle East.

IRAN DENIES NEGOTIATIONS WITH U.S.

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 - the interlocutor on the Iranian side, according to an Israeli official and two other sources familiar with the matter - said no talks had taken place. "No negotiations have been held with the U.S., 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 foreign ministry did, however, mention initiatives to reduce tensions.

U.S. Treasury yields pushed higher and the dollar regained lost ground as the world continues to grapple with what the International Energy Agency has called the biggest-ever disruption to energy supplies.

Brent crude futures rose to over $100 a barrel, reversing some of their 10% slide from Monday, while U.S. crude rose 4.3% to $91.93 per barrel.

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

TRUMP SPEAKS OF 'MAJOR POINTS OF AGREEMENT'

Trump told reporters his special envoy Steve Witkoff and son-in-law Jared Kushner, who ⁠had been negotiating with Iran before the war, had held discussions with a top Iranian official into the evening on Sunday and would continue on ​Monday.

A European official said that, while there had been no direct negotiations between the two nations, Egypt, Pakistan and Gulf states were relaying messages.

A Pakistani official and a second source told Reuters that direct talks on ending the war could be held in Islamabad as soon as this week.

The Pakistani official said U.S. Vice President JD Vance, as well as Witkoff and Kushner, were expected to meet Iranian officials in Islamabad this week, following a call between Trump and Pakistani defence forces ​chief Asim Munir.

The White House ‌confirmed Trump's call with Munir. The Pakistani prime minister's office did not immediately respond to requests for comment.

(Reporting by Phil Stewart, Idrees Ali, Gram Slattery and Humeyra Pamuk ⁠in Washington, Maayan Lubell in Jerusalem and Alexander Cornwell in Tel Aviv, Ariba Shahid ​in Karachi and Saad Sayeed in Bangkok; Additional reporting by Reuters bureaus; Writing by David Brunnstrom, Michael Perry and Sharon Singleton; Editing by Cynthia Osterman, Stephen Coates and Kevin Liffey)