Iran war rages as oil and stock markets grapple with conflicting messages from Trump and Tehran

A missile slammed into a street in central Tel Aviv as Iran kept up its barrages targeting Israel and Gulf Arab states on Tuesday, hours after President Trump said the U.S. was in talks with Tehran to end the war.

Iran dismissed the claim of ongoing negotiations as “fakenews is used to manipulate the financial and oil markets,” and Israel’s leader vowed to continue striking Iran and Lebanon regardless of diplomatic forays, to “protect our vital interests, in any case.”

Iran fired multiple waves of missiles at Israel early Tuesday, with reports of an impact in the country’s north. In Tel Aviv, a missile with a 220 pound warhead slipped through Israeli defenses and slammed into a street, blowing out the windows of an apartment building and sending smoke billowing.

“We saw destruction, smoke, and chaos,” rescue service worker Yoel Moshe told reporters at the scene minutes after the missile struck. Four people suffered minor wounds, he said.

In Kuwait, power lines were hit from air defense shrapnel, causing partial electricity outages in several hours. Missile alert sirens sounded in Bahrain, and Saudi Arabia’s Defense Ministry said it had destroyed 19 Iranian drones targeting its oil-rich Eastern Province.

Earlier in the day, Israel pounded Beirut’s southern suburbs again, saying it was targeting infrastructure used by the Iran-linked Hezbollah militant group. A strike on a residential apartment southeast of the Lebanese capital killed at least two people, according to the Lebanese Health Ministry.

While President Trump said Monday that he was extending his deadline for Iran to reopen the Strait of Hormuz to shipping traffic for five days to allow for talks, postponing his threat to attack Iranian power plants, the Israeli and U.S. militaries have said strikes will continue against Iranian military targets.

CBS/AP