Donald Trump says ceasefire still holds after fighting between the US and Iran flares

WASHINGTON/CAIRO: U.S. and Iranian forces clashed in the Gulf and the United Arab Emirates came under renewed attack, but President Donald Trump said a ceasefire was still holding despite the flare-up, which dented hopes for a swift diplomatic resolution to the crisis.

The escalation came as Washington awaited Tehran's response to a U.S. proposal to end the war, which began on February 28 when the U.S. and Israel launched airstrikes on Iran.

Trump said on Thursday three U.S. Navy destroyers ‌were attacked as they moved through ⁠the Strait ⁠of Hormuz, a vital conduit for global oil supplies that Iran has all but closed since the war began. On Friday, Iran accused the U.S. Navy of "aggressive acts" against two Iranian tankers.


"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," 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," Trump said in Washington.

IRAN ACCUSES U.S. OF BREACHING TRUCE
Iran, however, accused the United States of breaching the ceasefire, which had largely held since it was announced on April 7 but has been under its biggest strain since Trump announced and then paused a new naval mission in the strait this week.

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

Iran's ⁠top joint ‌military command said U.S. 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 U.S. 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 U.S. Central Command said none of its assets was 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 on Friday, resulting in three moderate injuries.

Since the war began, Iran has repeatedly targeted the UAE and other Gulf states that host U.S. military bases. In what the UAE called a "major escalation", Iran stepped up attacks on its neighbour this week after Trump announced "Project Freedom" to escort ships in the strait, which he paused after 48 hours.

OIL PRICES RISE ABOVE $100
Iranian forces seized the oil tanker Ocean Koi in the Gulf of Oman, east of the strait, over an alleged attempt to disrupt Iran's oil exports, state media said on Friday, quoting an army statement.

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

The oil tanker - which has been under U.S. sanctions since February - was escorted to the southern coast of Iran and handed over to the judicial authorities, according to state media.

China, which has remained a major buyer of Iranian oil since the outbreak of the war, on Friday confirmed that an oil products tanker carrying Chinese crew was attacked ⁠near the strait on Monday.

Oil prices rose, with Brent crude futures rising above $100 a barrel after the latest clashes, while stock prices retreated after strong gains this week on hopes for a swift resolution to the conflict.

"Despite ongoing hostilities and still-elevated oil prices, markets are pricing a limited duration," said Marija Veitmane, head of equity research at State Street Markets.

TRUMP URGES NEGOTIATED END TO WAR
Trump said diplomacy was still on track despite Thursday's hostilities, telling reporters: "We're negotiating with the Iranians."

Before the latest clashes, the U.S. had floated a proposal that would formally end the conflict first, before addressing its core demands - that Iran suspend its nuclear programme and reopen the strait. Tehran said it had not yet reached a decision on the plan.

Even so, Trump said Tehran had acknowledged his demand that Iran could never get a nuclear weapon, a prohibition he said was implicit in the U.S. 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," 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, Trump said: "It might not happen, but it could happen any day."