The Iran war’s shaky ceasefire came under further strain on Friday as the United Arab Emirates responded to a missile and drone attack hours after the United States said it thwarted attacks on three Navy ships in the Strait of Hormuz and retaliated against Iranian military facilities.

The violence jeopardised the fragile truce between Iran and the United States while the two sides considered a deal to end the fighting.

On Thursday, Tehran said it was examining the latest US proposals for ending the war.

Iranian Foreign Ministry spokesman Esmail Baghaei said the Islamic Republic was reviewing messages from Pakistan, which is mediating peace negotiations, but Iran “has not yet reached a conclusion, and no response has been given to the US side”, Iranian state TV reported.

The Trump administration has sent mixed messages on its strategy to end the war.

The ceasefire and previous declarations that military operations were over have given way to new threats of bombing if Tehran does not accept a deal that allows for resumption of oil and natural gas shipments disrupted by the conflict.

Trump reiterated those threats after Thursday’s exchange of fire involving the US Navy.

"They have to understand: If it doesn’t get signed, they’re going to have a lot of pain," he said in Washington.

Asked how close the United States was to a deal with Iran, Trump said: "It could happen any day," but quickly added, "And it might not happen."

The ceasefire has largely held since April 8.

In-person talks between the two countries, hosted by Pakistan last month, failed to reach an agreement to end the war that began on February 28 when the United States and Israel launched strikes against Iran.

The UAE's defence ministry advised residents not to approach, photograph or touch "any debris or fragments that have fallen as a result of successful air interceptions".

Pakistani Foreign Minister Ishaq Dar spoke by phone on Thursday with his Iranian counterpart, Abbas Araghchi, the Pakistani Foreign Ministry said.

"We expect an agreement sooner rather than later," Pakistani Foreign Ministry spokesman Tahir Andrabi said.

"We hope the parties will reach a peaceful and sustainable solution that will contribute not only to peace in our region but to international peace as well."

Pakistani Prime Minister Shehbaz Sharif, speaking in televised remarks, said Islamabad remained in "continuous contact with Iran and the United States, day and night, to stop the war and extend the ceasefire."

Meanwhile, direct talks between Israel and Lebanon were scheduled to resume next week in Washington, according to a US official to discuss plans for the closed-door meetings.

The official said talks will be held on May 14 and 15.

Earlier on Thursday, a shipping data company reported that Iran had created a government agency to vet and tax vessels seeking passage through the crucial strait.

The Iranian effort to formalise control over the channel raised new concerns about international shipping, with hundreds of commercial vessels bottled up in the Persian Gulf and unable to reach the open sea.

Still, hope that the two-month conflict could soon be over buoyed international markets.

The report by shipping data firm Lloyd’s List Intelligence that Iran has established a new government agency to approve transit and collect tolls from shipping in the strait raised concerns over the freedom of navigation on which global trade depends.

The agency, called the Persian Gulf Strait Authority, is "positioning itself as the only valid authority to grant permission to ships transiting the strait," Lloyd’s reported in an online briefing on Thursday.

Lloyd’s said the authority had emailed it an application form for ships seeking passage.

The new Iranian agency formalises a system Iran has used to let ships through the strait and charge tolls during the war.

Iran aims to control which ships pass and, for at least some vessels, impose a tax on their cargo. (AP)


Edited by Tony Sabine