CAIRO/WASHINGTON, March 25 (Reuters) - Israel and Iran exchanged airstrikes on Wednesday, as Iran's military rejected President Donald Trump's claim the U.S. was in negotiations to end to the war which has roiled energy and financial markets,

Iran rejected a 15-point proposal from the U.S. to reach a ceasefire in the war. Iran issued its own proposal calling for reparations and sovereignty over the Strait of Hormuz.

The White House says talks are proceeding while Iran’s foreign minister says they are not. Meanwhile, the US is working to arrange a meeting in Pakistan to discuss an off-ramp, two administration officials told CNN.

Tensions in the Middle East continue to escalate sharply as diplomatic signals from Tehran and Washington remain deeply contradic

Iranian missiles struck Dimona and Arad in southern Israel, injuring dozens of people. Iran’s state media said the attack on Dimona was aimed at Israel’s nuclear facilities, which U.N. officials said were not hit.

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Iran has asked India, BRICS chair, to back a statement condemning US-Israel strikes, but New Delhi is resisting taking sides amid deep divisions.

Israeli officials say a US-Iran deal remains unlikely, but fear President Donald Trump could still declare a temporary ceasefire as talks continue. While Israeli officials assess that a deal between