War on Iran: Phase II: Day 16

All quiet on the Iranian front with no overnight strikes. But Trump's AI game tells a different story. And in case you thought the energy market crisis had gone away, it hasn't. Here's what you need to know. After nearly two weeks of exchanging fire, with what looked like a full return to war and the total collapse of negotiations, things have taken another U-turn and diplomacy is now back on the table. How did we get here? A few days ago, reports indicated the Pentagon was sending F-16 and F-35 fighter jets, among other military assets, to the Middle East in anticipation of a full-scale attack on Iran. Then it appeared that dwindling U.S. ammunition stockpiles may be forcing the White House back towards diplomacy. U.S. President Donald Trump, however, has denied that that is a factor. Iran, too, has put its guns down, saying there's no need for retaliatory attacks in the region as long as America behaves. But is America going to, quote, behave? As the president said, we are locked and loaded. Even more assets are going into theater. But he's giving talk some space. He's giving it a little bit of room. We've had both Oman and Iran and a number of our other negotiators engaged at every level. While active warfare appears to have eased, the AI-driven Me-more remains in full swing, at least on Trump's side. He's been sharing AI-generated images of attacks on Iranian facilities. One image appears to show Trump standing aboard a U.S. flag tanker as the U.S. maintains its blockade on Iranian ports. Another depicts fighter jets striking Kharg Island, one of Iran's key oil export terminals. Remember all the Iranian Lego videos? Well, we'll have to see if they make a comeback. Is the Pentagon reporting on U.S. troops' casualties accurately? Reports suggest that they've added more than 600 Iran war casualties in a quiet database update. Four troops killed during Granout fighting were moved into a separate overseas operations category rather than being listed under the Iran war toll, a move that appears to test the limits of the War Powers Act, with critics arguing it goes against legislation intended to end the war after May 1. The administration, however, says the current fighting is separate from Operation Epic Fury, which began on February 28. And that distinction is now at the center of the debate. Whether this is the same war or a different one, a pause is what was needed to send oil prices down. Markets reacted to signs of de-escalation, with Brent crude falling more than 4% as investors hope to see the Strait of Hormuz fully reopen. While oil is fluctuating, certain markets are repositioning to sustainable energy, with Africa leading the way, adopting Chinese alternatives. The Hormuz remains a major flashpoint in the Iran war. Iranian state media says six ships attempted to pass through what Tehran calls an illegal and unsafe route, which caused an oil tanker to explode after hitting a naval mine, while the other vessels turned back under Iranian direction. Iran has been demanding that ships pass through its own waters rather than using the southern route along the coast of Oman. This incident only adds pressure on vital shipping routes in the region. Data from analytics platform Kipler shows traffic through the Bab al-Mandab Strait has declined since the Houthis announced their blockade against Saudi Arabia, confirming concerns over the impact on one of the world's key trade routes. The U.S.-Iran war has taken one expected turn after another, but with each passing day, the wider consequences are becoming harder to ignore. Stay with us on Al Jazeera for all your latest updates in the war on Iran.