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Hostilities flare again in Iran war, talks at a stalemate

By Enas Alashray and Patricia Zengerle

DUBAI/WASHINGTON, June 3 (Reuters) - Hostilities in the Gulf erupted anew on Wednesday with a report of missile attacks on Kuwait, while little progress was evident in diplomatic talks between Iran and the United States.

A faulty interceptor missile launched by Israel’s Iron Dome anti-missile system disintegrates above southern Lebanon, shortly after being launched by Israel, as seen from the israeli side of the Israel-Lebanon border, in northern Israel, June 1, 2026. REUTERS/Amir Cohen

'Crazy': Trump-Netanyahu relationship under growing strain

They went to war together against Iran, but Donald Trump and Benjamin Netanyahu's relationship is under strain after the US president reportedly called the Israeli premier "crazy."

Trump unleashed a profane tirade over the phone at Netanyahu over Israel's threats to bomb the Lebanese capital Beirut, fearing it would undermine talks with Tehran, the Axios news outlet and ABC News reported.

US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu launched the war

MSC says vessel hit by projectiles in Iraq's Umm Qasr port on Monday, crew safe

ROME, June 2 (Reuters) - MSC, the world's largest shipping group, said on Tuesday its Sariska V vessel was struck by two projectiles while in Iraq's Umm Qasr port on Monday, adding that all crew members were safe and unharmed.

The company said Iran's Revolutionary Guard had claimed responsibility. MSC described the incident as an unprovoked attack on a neutral commercial carrier with no affiliation to the United States or Israel.

Damage on the Sariska V vessel in the Persian Gulf after MSC, the world's largest shipping group, said the vessel was struck by two projectiles in Iraq's Umm Qasr port, in this handout image released June 2, 2026. IRAQI PORTS COMPANY MEDIA/Handout via REUTERS.

Putin's 'Davos' haunted by war and stagnation despite the swank of influencers

By Guy Faulconbridge

ST PETERSBURG, Russia, June 2 (Reuters) - A right-wing U.S. influencer, a serving U.S. official and a German retail billionaire are due to attend President Vladimir Putin's "Russian Davos" on Wednesday as the Kremlin grapples with stalled growth and a confrontation with the West over the Ukraine war.

Russia's premier investment forum, the fifth since Russia sent troops into Ukraine in 2022, opens just hours after a deadly drone and missile attack on Kyiv which Russia said was in response to a deadly attack on a dormitory in Russian-controlled Luhansk.

Flags with the logo of the St. Petersburg International Economic Forum (SPIEF) fly in front of the State Hermitage Museum on the eve of the forum's opening in Saint Petersburg, Russia June 2, 2026. REUTERS/Anastasia Barashkova

US Treasury issues new Iran sanctions targeting crypto exchanges

June 2 (Reuters) - The United States issued new Iran-related sanctions on Tuesday, targeting individuals and crypto exchanges, a notice on the Treasury Department website showed.

The U.S. sanctioned four Iranian nationals and four Iran-based digital asset exchangesNobitex, Bitpin, Ramzinex and Wallex, the Treasury said.

Foreign financial institutions and individuals may also be sanctioned if they engage in certain transactions with the four firms, the department added.

(Reporting by Bhargav Acharya; Editing by Christian Martinez and Costas Pitas)

FILE PHOTO: Signage is seen at the United States Department of the Treasury headquarters in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo

Rubio says at least five countries are open to taking in stranded Afghans

WASHINGTON, June 2 (Reuters) - U.S. Secretary of State Marco Rubio told lawmakers on Tuesday that the Trump administration does not want to force Afghans currently stranded in Qatar to return to Afghanistan and has spoken with at least five countries who are open to receiving them.

More than 1,100 people have been held at the former U.S. Army base Camp As Sayliyah (CAS) since at least early last year, when Republican President Donald Trump's administrationhalted resettlement for Afghans who feared retribution from Taliban authorities for their links to the U.S. military.

U.S. Secretary of State Marco Rubio testifies before a Senate Foreign Relations Committee hearing on President Donald Trump's FY2027 budget request for the Department of State, on Capitol Hill in Washington, D.C., U.S., June 2, 2026. REUTERS/Evan Vucci

Rubio: no change in US policy on Taiwan

WASHINGTON, June 2 (Reuters) - Secretary of State Marco Rubio said on Tuesday there has been no change in U.S. policy on Taiwan and that Washington wants to see the status quo preserved.

"The most important thing to understand is we want to see the status quo preserved as-is at this moment. That's our policy, that's what we've said, that's what we continue to say," Rubio said at a Senate Foreign Relations Committee hearing.

"It's a very ... delicate relationship to balance, but our policy on Taiwan is not changing," Rubio said.

U.S. Secretary of State Marco Rubio testifies before a Senate Foreign Relations Committee hearing on President Donald Trump's FY2027 budget request for the Department of State, on Capitol Hill in Washington, D.C., U.S., June 2, 2026. REUTERS/Evan Vucci

Rubio hopeful for Iran deal, insists on nuclear curbs

Secretary of State Marco Rubio on Tuesday expressed hope that a deal to end the war in Iran was in the cards, stressing that Tehran must severely curtail its nuclear program before any sanctions are lifted.

"There is the prospect before us, which could happen today, it could happen tomorrow, it could happen next week," Rubio told a Congressional panel.

US Secretary of State Marco Rubio testifies during a Senate Foreign Relations Committee hearing

'Life and hope': Lebanon hospital resilient after Israeli attack

In a south Lebanon hospital heavily damaged by deadly Israeli strikes nearby, Dr Nasser al-Masri held a new-born baby, calling him "a message of life and hope" despite the war.

Israeli strikes near the Jabal Amel hospital in Tyre on Monday killed four people and wounded 127, including four doctors, 27 nurses, and eight administrative employees, Lebanon's health ministry said.

They also caused "severe and extensive damage" to the facility, it added.

First responders gather at the site of the hospital car park after an Israeli strike hit nearby

Middle East war hammering aid supply chains: UN

Even if the Middle East war stopped immediately, disrupted global humanitarian supply lines would not recover before 2027, the United Nations said Tuesday.

Nearly 100 days on from the February 28 US-Israeli attacks on Iran that triggered the conflict, the fall-out extends far beyond the Middle East region, said Jean-Cedric Meeus, chief of global transport and logistics for the UN children's agency UNICEF.

A displaced Sudanese student sitting outside a tent serving as a temporary classroom. The Middle East war is hitting UNICEF's supply chains