Escalating tensions in the Middle East, triggered by Israeli airstrikes on Iranian military and nuclear sites and Iran's retaliatory missile launch, have derailed nuclear talks between Iran and the US.

A US aircraft carrier is barrelling towards the Middle East after Donald Trump warned the “full strength and might” of the military would be used if America was attacked. Iran and

Relative calm returned to global markets, with stocks climbing and oil sinking alongside gold as fears subsided that Israel’s war against Iran would escalate into a wider conflict. News reports that Tehran wants to restart talks over nuclear programs also fueled risk-on sentiment.

The sixth round of U.S.-Iran nuclear talks will be held on Sunday in Muscat, the Omani foreign minister said on Thursday, after U.S. President Donald Trump reiterated that Tehran would not be allowed to have a nuclear weapon.

Iran is "exploiting the time to modify nuclear facilities in ways that could diminish the impact of a potential military strike on those sites and their outcomes,” sources said.

The latest escalation in tensions in Iran has paved the way for the return of risk premiums on oil prices once again.

Seyed Ali Alavi, a lecturer in Middle Eastern studies at SOAS University of London, said that the strikes would doubtless cast a shadow over Sunday's talks ... East to possess nuclear weapons ...

The move to reduce staff at some U.S. installations in the Middle East comes ... can't have a nuclear weapon." Trump has repeatedly threatened to strike Iran if stuttering talks over its nuclear ...

Iran warns of an "unprecedented" retaliation if Israel attacks, while President Trump describes the Middle East as a "dangerous place."