By Trevor Hunnicutt and Gram Slattery

WASHINGTON, May 27 (Reuters) - U.S. President Donald Trump said on Wednesday he was unconcerned about the political fallout of an extended conflict with Iran, and that Iranian leaders had miscalculated if they thought the November midterm elections would force him into a deal.

"They thought they were going to outwait me," Trump said at a White House cabinet meeting, referring to Iran's leadership. "You know, 'We'll outwait him. He's got the midterms.' I don't care about the midterms."

President Donald Trump on Wednesday appeared to threaten to attack US ally Oman if it sides with Iran over reopening the Strait of Hormuz.

Trump said Oman must "behave" or he would "blow them up," when he was asked if he would accept a short-term deal to allow Iran and the Gulf state to control the waterway.

"No, the strait is going to be open to everybody," Trump told reporters during a cabinet meeting at the White House.

"It's international waters and Oman will behave just like everybody else or we'll have to blow them up. They understand that, they'll be fine."

By Dawoud Abu Alkas , Nidal al-Mughrabi and Jana Choukeir

GAZA/CAIRO/DUBAI, May 27 (Reuters) - Dozens of Palestinians carried the body of Hamas' armed wing chief through the streets of Gaza City in a funeral procession on Wednesday, a day after Israel killed him as it moves to eliminate the militant group's top brass despite a ceasefire.

The Israeli military said Mohammad Odeh was killed in a targeted attack on Tuesday night, just over a week after his predecessor, Izz al-Din al-Haddad, was killed in an Israeli strike on a Gaza apartment block.

BEIRUT, May 27 (Reuters) - Israel's military on Wednesday declared a new swathe of southern Lebanon as a combat zone and said residents in the area should move north, warning it would act "with great force" against Lebanese armed group Hezbollah in the zone.

The military's statement, posted on X, appeared to signal further escalation after more than 120 strikes on Tuesday hit Lebanon's south and east, despite a ceasefire announced on April 16.

US President Donald Trump said Wednesday he was not yet satisfied with Iran's offers to make a deal, after Iranian state television reported details of what it claimed was a draft agreement.

Speaking at a cabinet meeting in the White House, Trump added that he was in no rush to reach an accord to end the Middle East war, despite saying at the weekend that one was close.

"Iran is very much intent, they want very much to make a deal. So far they haven't gotten there. We're not satisfied with it, but we will be," Trump said.

WASHINGTON, May 27 (Reuters) - U.S. President Donald Trump on Wednesday told a cabinet meeting that Iran very much wanted to make a deal, but that the U.S. was not satisfied with it yet.

"Iran is very much intent, they want very much to make a deal. So far they haven't gotten there ... we're not satisfied with it, but we will be. We will be either that or we'll have to just finish the job," Trump told reporters at a cabinet meeting at the White House.

(Reporting by Trevor Hunnicutt and Michelle Nichols; Writing by Daphne PsaledakisEditing by David Ljunggren)

By Ted Hesson and Ryan Patrick Jones

WASHINGTON, May 27 (Reuters) - The Trump administration will extend deportation protections and work permits for thousands of Lebanese nationals in the U.S. for six months, according to a notice posted to the Federal Register on Wednesday.

Some 11,000 people from Lebanon are covered under the Temporary Protected Status designation, according to a 2024 estimate. Under the move, they will be allowed to live and work legally in the U.S. through November 27, the notice said.

Iran's move to reconnect the country to the global internet after an almost three-month blackout has left many Iranians unimpressed, with full connectivity far from restored and access seen as a right that shouldn't have been taken away in the first place.

Iranian authorities on Tuesday began lifting the shutdown that started on the first day of the US-Israeli war against the Islamic republic on February 28 -- a repeat of January's internet shutdown during mass protests.

By Pratima Desai and Polina Devitt

LONDON, May 27 (Reuters) - Canada is pushing more of its aluminium towards Europe to make the most of higher premiums on offer, after its neighbour the United States imposed a 50% tariff on the metal last year.

A loss of Middle East volumes due to the Iran war has hit Europe hardest and intensified competition with the U.S. for low-carbon supply, driving prices to extreme levels, with policy and prices determining where scarce aluminium is shipped, analysts, traders and aluminium industry sources said.

By Jonathan Saul

ATHENS, May 27 (Reuters) - An oil products tanker operated by Chinese shipping group COSCO was in the process of crossing through the Strait of Hormuz on Wednesday, after two crude tankers sailed in the past day, although oil traffic overall was still limited, shipping data showed.

Before the war on Iran began on February 28, shipping traffic through the Strait averaged 125 to 140 daily passages. Due to the conflict, 20,000 seafarers remain stranded inside the Gulf on board hundreds of ships.