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Iranian officials say they have closed the strait because of the U.S.'s ongoing blockade of its ports.
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Iran's military said on Saturday the Strait of Hormuz has "returned to its previous state." The announcement came after President Trump had said the blockade on Iranian ports would remain in place.
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BBC Arabic's correspondent Carine Torbey reports from the border town of Khiam, as the ceasefire between Israel and Hezbollah in southern Lebanon goes into its second day.
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The truce appeared to mostly hold even as Israel said it had carried out strikes on what it called "terrorists" approaching its forces in southern Lebanon. Separately, a U.N. peacekeeper was killed.
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The S&P 500 leaped 2.5% after Trump announced a two-week ceasefire with Iran, less than 90 minutes before a deadline Trump had set for it to open the Strait of Hormuz.
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The Strait of Hormuz has remained almost completely closed as the U.S. and Iran have disputed the terms of their ceasefire agreement.
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Even amid uncertainty over whether Hezbollah would uphold the truce, Lebanese residents expressed relief at the prospect of quiet, and aid groups were mobilizing help.
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Hezbollah, the Iran-backed Lebanese militant group, acknowledged the ceasefire, but did not say whether it would abide by it and urged people displaced by war in Lebanon to refrain from heading home.
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President Donald Trump accused Iran of "doing a very poor job" of opening the Strait of Hormuz to oil traffic, as shipping flows remained effectively blocked.
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