Iran has dismissed claims that its forces were behind an attack on a South Korean cargo vessel in the Strait of Hormuz, even as US President Donald Trump said a potential agreement to end the ongoing conflict was “very possible” but warned that US airstrikes could resume if talks collapse.
The HMM Namu, a Panama-flagged ship with 24 crew members, reportedly caught fire on Monday while passing through the strategic waterway. Iranian officials in Seoul firmly rejected any involvement, describing the allegation as false.
Trump, however, told reporters that Iran had “taken some shots” at the vessel and urged South Korea to support US-led efforts aimed at restoring safe passage through the strait.
The wider conflict, which erupted in late February following US and Israeli military operations, has seen Iran respond with strikes across the Middle East and tighten control over the Strait of Hormuz a critical route for global oil shipping.
The disruption has already shaken energy markets worldwide.
Despite the tensions, Trump struck a cautiously optimistic tone, saying discussions over the past day had been “very good” and that a deal was within reach.
“We’ve had very good talks over the last 24 hours, and it’s very possible that we’ll make a deal,” he said.
Still, he warned that if Iran fails to meet agreed terms, military action could return “at a much higher level and intensity.”
Iran, meanwhile, said it is still reviewing a new US proposal. Foreign ministry spokesperson Esmaeil Baqaei confirmed that Tehran would communicate its position through Pakistan, which is acting as a mediator.
Iran’s parliament speaker, Mohammad Bagher Ghalibaf, accused Washington of trying to pressure Tehran into submission through economic and military means, including what he described as a naval blockade and propaganda efforts.
Reports from US media suggest both sides may be close to signing a short memorandum of understanding that could outline steps toward ending hostilities and restarting broader nuclear talks.
International actors are also weighing in.
Pakistani Prime Minister Shehbaz Sharif expressed optimism that negotiations could lead to “lasting peace and stability,” while French President Emmanuel Macron urged restraint and the immediate easing of restrictions affecting shipping in the region.
Macron is also backing a multinational effort involving more than 40 countries aimed at protecting maritime movement in the Strait of Hormuz, as tensions continue to disrupt global trade routes.
In Tehran, however, public sentiment appears mixed.
Some residents expressed deep frustration with the situation, with one citizen telling reporters that continued negotiations with the current leadership feel “terrifying.”
Despite the uncertainty, financial markets reacted positively to signs of possible de-escalation.
US and Asian stock markets rallied, while oil prices dropped on hopes that shipping routes could soon stabilise.
Still, violence on the wider regional front continues. Israel carried out fresh strikes in Lebanon, killing a senior Hezbollah commander and several others, underscoring how quickly the conflict has spread beyond Iran and the Gulf.
For now, diplomacy and military threats are running side by side, with both Washington and Tehran signalling that the coming days could determine whether the crisis moves toward resolution or escalates further.
