March 17 (Reuters) - An air strike by Pakistan on Monday that the Afghan government says killed hundreds of civilians has led to an escalation in the conflict between the South Asian neighbours.

Here is a look at what happened.

WHERE WAS THE ATTACK?

The Afghan Taliban government says the Pakistani air strike targeted a drug rehabilitation hospital in the capital Kabul, killing at least 408 people and injuring 265 more.

Here are the latest developments Tuesday in the Middle East war:

- Ukrainian anti-drone experts -

Some 201 Ukrainian anti-drone military experts were in several Middle East countries to help defend against Iranian-designed drones, President Volodymyr Zelensky said.

- US embassy struck -

The US embassy in Baghdad was the target of a drone and rocket attack, a security official said.

The strike sparked a fire on embassy grounds, the source said, while a witness reported seeing the fire from her balcony.

- Crowds gather in Iran -

BRUSSELS, March 17 (Reuters) - The European Union has started taking the unpredictability of the United States into account one year after President Donald Trump returned to the White House, EU foreign policy chief Kaja Kallas said on Tuesday.

"Of course, we are allies with America, but we don't really understand their moves recently," Kallas told Reuters in an interview.

BRUSSELS, March 17 (Reuters) - European Union foreign policy chief Kaja Kallas said on Tuesday diplomatic ways have to be found in order to keep the Strait of Hormuz open, as U.S. President Donald Trump calls on allies to send warships there to secure transit amid the war in Iran.

"Nobody is ready to put their people in harm's way in the Strait of Hormuz. We have to find diplomatic ways to keep this open so that we don't have a food crisis, fertilizers crisis, energy crisis as well," Kallas said in an interview with Reuters.

By Sudarshan Varadhan, Emily Chow and Ariba Shahid

SINGAPORE/KARACHI, March 17 (Reuters) - Asian utilities are boosting coal-fired power generation to cut costs and safeguard energy supply, industry officials say, as the U.S.-Israeli war on Iran chokes liquefied natural gas (LNG) shipments and soaring prices threaten to suppress LNG demand.

Asia spot LNG prices have doubled to three-year highs in the second major supply shock in four years, as shipping through the Strait of Hormuz has all but stopped and No.2 global exporter Qatar has halted shipments.

LONDON, March 17 (Reuters) - Britain, Finland and the Netherlands are looking at teaming up to jointly finance and procure weapons, munitions and military equipment, given the increasing threat level across the world, with war in Ukraine and in the Middle East.

The three countries said that together with other unnamed partners they were exploring setting up a new mechanism by 2027 which would speed up investment and boost demand for defence kit, a statement from Britain said on Tuesday.

DUBAI, March 17 (Reuters) - Iraq's oil minister said Baghdad is talking to Iran about allowing some of the country's oil tankers to pass through the Strait of Hormuz, the state news agency reported on Tuesday, as Iraq seeks to ease disruptions to crude exports following recent attacks on tankers in its own waters.

Iraq is also working to restore a disused pipeline that would allow oil to be pumped directly to Turkey's Ceyhan port without passing through the Kurdistan region, Oil Minister Hayan Abdel-Ghani said in a video statement released on Monday.

DUBAI, March 17 (Reuters) - Israeli media said on Tuesday that the military has targeted Iran's security chief Ali Larijani, adding that it was not immediately clear whether he was killed or injured.

Iran has not yet commented on the report.

(Reporting by Jana Choukeir; Editing by Andrew Cawthorne)

March 17 (Reuters) - Iran's football federation is in discussions with FIFA about moving their World Cup matches to Mexico from the United States due to concerns about the safety of their players, Iranian football president Mehdi Taj said on Monday.

Iran's participation in the global soccer showpiece was thrown into doubt after co-hosts the United States launched joint air strikes at the country along with Israel.

By Antoni Slodkowski

BEIJING, March 17 (Reuters) - U.S. President Donald Trump's request to delay the planned summit in Beijing with Chinese leader Xi Jinping casts a shadow over mutual ties that have been stable since their last meeting in October, but is unlikely to cause a major setback, analysts said.

Trump's move shows how the Iran conflict has upended his foreign policy agenda and added war to trade and Taiwan among the spectrum of issues separating the world's two biggest economies.