However, nearly four months later the government of the Islamic Republic remains in power despite weeks of conflict with the US and Israel. The Trump administration has since entered negotiations with the regime on its nuclear programme after striking an initial agreement to end the violence.

Read the full story below.

It is nearly four months since the US and Israel launched war on Iran - a decision which had a dramatic and devastating impact stretching almost every corner of the world.

From skyrocketing oil prices, rising costs of global commodities, and deepening levels of food insecurity and poverty, normal people have been paying the price for a war involving the world’s most advanced military and the two most powerful forces in the Middle East.

But a war that many believed would be short-lived - with Donald Trump repeatedly vowing it would end “soon” with a total victory - dragged on for days, weeks, and then months, inflicting spectacular damage not only on global finances, but on the US military’s reputation as an unassailable force.

The global impact of the Iran war ranges from jet fuel prices, to the price of food, to increases in household bills.

Alex Croft reports:

President Donald Trump has insisted that Iran has in fact agreed to indefinite nuclear inspections despite denials by Iran.

“Despite their protestations and false statements to the contrary, coupled with the drumbeat of the Fake News, which is doing everything possible to make the U.S. Victory as small and insignificant as possible, Iran has fully and completely agreed to highest level Nuclear inspections long into the future (Infinity!!!),” he wrote in a post n Truth Social on Tuesday.

“This will insure ‘Nuclear Honesty’. If they did not agree to this, there would be no further negotiations! Based on this and other major concessions being made by Iran, I have agreed to allow the Hormuz Strait to remain OPEN, with no further Naval Blockade.

“However, all ships are remaining in place should it be necessary to reinstitute the Blockade, which seems, at this point, highly unlikely.”

The latest decline is directly linked to the US Treasury’s issuance of a 60-day licence, which waives sanctions on Iranian oil as part of an interim agreement to end the conflict, thereby allowing Iranian oil to re-enter the US market.

Israel said on Tuesday that it had struck “terrorists” in Lebanon who posed an immediate threat to soldiers operating in the security zone in southern Lebanon.

It follows reports that Israeli gunfire killed two people despite a ceasefire.

An Iranian envoy has warned on Tuesday that any violation of a memorandum of understanding signed by the US and Iran last week will pose challenges to ongoing talks.

The first article in the agreement referred to a cessation in conflict between the US, Israel and Iran and would also apply to Lebanon.

However, Israeli gunfire has killed two people on Tuesday, according to reports.

Israeli gun fire in Lebanon has killed two people on Tuesday, the Lebanese civil defence and state media reported.