Oman on Tuesday denied it has agreed to establish diplomatic relations with Israel, a day after the Israeli intelligence chief said his country was renewing ties.

The diplomatic chiefs of the EU, France, Germany and Britain said Tuesday they were "extremely concerned" and urged Iran to reverse its decision to breach a limit on enriched uranium reserves under a 2015 nuclear deal.

Britain, France and Germany will not for the moment trigger a dispute resolution mechanism enshrined in the 2015 Iran nuclear accord that could lead to the reimposition of United Nations sanctions, two European diplomats said.

The Palestinian Authority (PA) released a Palestinian businessman on Sunday it had arrested upon his return from a U.S.-led economic conference in Bahrain this week, his family and an official said.

Bahrain said it had recalled its envoy to Iraq after protesters upset by Manamas's hosting of an American Middle East peace conference torched its flag in Baghdad.

More than 200 demonstrators broke into the courtyard of Bahrain's Embassy in Baghdad and took down the kingdom's flag on Thursday night to protest a U.S.-led meeting in Bahrain on Israeli-Palestinian peace.

Bahrain's foreign minister has said Israel is part of the region's heritage and the Jewish people have "a place amongst us" in a rare interview of an Arab official by an Israeli journalist.

A U.S.-led conference in Bahrain designed to drum up investment in the Palestinian economy and pave a path to peace with Israel has gone largely unremarked by Israelis preoccupied with a political crisis and their arch-foe Iran.

A day after the Trump administration wrapped up an international conference meant to lay the economic foundations for Israeli-Palestinian peace, the Palestinian premier said it was "divorced from reality" and unlikely to evolve into a political plan.

Iran's main demand in talks aimed at saving its nuclear deal is to be able to sell its oil at the same levels that it did before Washington withdrew from the accord a year ago, an Iranian official said on Thursday.

Iran's foreign minister said on Twitter on Thursday that U.S. President Donald Trump's view that a conflict with Iran would be a "short war" was an illusion and that his threat of "obliteration" amounted to threatening "genocide".

Palestinian leaders accused the Trump administration of punishing them with one hand and offering to reward them with the other, as protesters turned out in the West Bank and Gaza on Wednesday to demonstrate against a U.S. economic peace plan.

Saudi Arabia's finance minister Mohammed al-Jadaan said on Wednesday that it will support whatever economic plan will bring prosperity to the Palestinians.

U.S. President Donald Trump on Wednesday said he was "fine" if there was no new agreement with Iran, adding that he had "unlimited time" to try and reach a deal with Tehran.

U.S. Secretary of State Mike Pompeo said in an interview with local media in India on Wednesday that the United States had done everything it could to de-escalate tensions with Iran.

Iran will speed up enrichment of uranium after a deadline given to European countries to prevent this ends on Thursday, the spokesman for Iran's Atomic Energy Organization said on Wednesday, according to the IRIB news agency.

The sultanate of Oman has announced it will open an embassy in the West Bank, in the city of Ramallah. The announcement comes as Bahrain hosts a summit on a U.S. Mideast peace plan by the Trump administration, focusing on the Palestinian economy.

A Saudi Arabian delegation led by Finance Minister Mohammed Al-Jadaan is to take part in Bahrain conference on economic development in the Palestinian territories, the Saudi Press Agency said.

Thousands of Palestinians demonstrated Tuesday throughout the occupied West Bank and the Gaza Strip against the launch of the US administration's Middle East peace plan.

The Trump administration launched a $50 billion economic formula for Israeli-Palestinian peace on Tuesday, saying an investment program for the Palestinians was a precondition for ending the decades-old conflict.