Iran mulls peace deal, says US 'blatantly' breached truce

Iran has accused the United States of breaching their truce, as both sides blamed the other for triggering an overnight clash in the Strait of Hormuz.

"The action carried out last night was both a blatant violation of international law and a breach of the ceasefire," foreign ministry spokesman Esmaeil Baqaei said, according to the ISNA news agency.

"At the same time, the country's defenders delivered a 'major slap' to the enemy and repelled the enemies' aggression with full force," he continued.

Recent days have seen the biggest flare-ups in fighting in and around the contested Strait of Hormuz since a ceasefire began a month ago, even as the US and Iran have indicated they are closer than ever to a deal to end the war.

The US has said it expects an Iranian response as soon as later in the day to its latest proposal.

Watch: Iran 'better sign their agreement fast' - Trump
"We should know something today," US Secretary of State Marco Rubio told reporters in Rome.

"We're expecting a response from them.

We'll see what the response entails.

The hope is it's something that can put us into a serious process of negotiation."
President Donald Trump said a ceasefire was still holding despite the flare-up.

The deal proposed by the US would formally end the war first, before talks to resolve the most contentious issues such as the fate of Iran's nuclear programme.

Mehr news agency reported that 10 crew members were injured and five missing from an Iranian commercial ship attacked last night by the US Navy in waters near the strait, the vital conduit for global energy supplies that Iran has all but closed since the war began.

Mr Trump said three US Navy destroyers had been attacked as they moved through the strait, and the US military had fired back.

"Three World Class American Destroyers just transited, very successfully, out of the Strait of Hormuz, under fire.

There was no damage done to the three Destroyers, but great damage done to the Iranian attackers," Mr Trump wrote on Truth Social.

He later told reporters the ceasefire remained in effect and played down the exchange.

"They trifled with us today.

We blew them away," Mr Trump said in Washington.

Iran accused the United States of breaching the ceasefire, which had largely held since it was announced on 7 April but has come under far bigger strain this week since Mr Trump announced, and then paused, a new naval mission in the strait.

"Every time a diplomatic solution is on the table, the US opts for a reckless military adventure," Foreign Minister Abbas Araqchi said.

Iran's top joint military command said US forces had targeted an Iranian oil tanker and another ship, and carried out air attacks on civilian areas on Qeshm Island in the Strait of Hormuz and nearby coastal areas.

It said Iranian forces responded by attacking US military vessels east of the strait and south of the port of Chabahar.

A spokesperson for Khatam al-Anbiya Central Headquarters said the Iranian strikes inflicted "significant damage," but US Central Command said none of its assets were hit.

Later, Iran's Press TV reported that, after several hours of exchanges, "the situation on Iranian islands and coastal cities ...

is back to normal now".

The confrontation was not confined to the waterway.

The United Arab Emirates said its air defences engaged with two ballistic missiles and three drones from Iran, resulting in three moderate injuries.

During the war, Iran has repeatedly targeted the UAE and other Gulf states that host US military bases.

In what the UAE called a "major escalation", Iran stepped up attacks on its neighbour this week after Mr Trump announced "Project Freedom" to escort ships in the strait, which he then paused after 48 hours.

In another incident in the area, Iranian forces seized an oil tanker, the Ocean Koi, in the Gulf of Oman east of the strait over an alleged attempt to disrupt Iran's oil exports, state media said earlier today, quoting an army statement.

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It said the Barbados-flagged tanker, which is under US sanctions, was carrying Iranian oil and "was trying to harm and disrupt oil exports … by exploiting regional conditions", without giving further explanation.

Oil prices held steady, with Brent crude futures hovering around $100 a barrel, as traders weigh the conflicting signals of clashes in the Gulf against reports of diplomatic progress.

Mr Trump said Iran had acknowledged his demand that Iran could never get a nuclear weapon, a prohibition he said was implicit in the US proposal.

"There's zero chance.

And they know that, and they've agreed to that.

Let's see if they are willing to sign it," Mr Trump said.

Iran has always said its nuclear programme is peaceful and it is not pursuing a weapon.

Asked when any deal might be reached, Mr Trump said: "It might not happen, but it could happen any day."
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