The United States and Iran exchanged fire late Thursday in the Strait of Hormuz, with both sides accusing the other of initiating the latest escalation, though President Donald Trump said a ceasefire still remains in effect.

Iran claimed U.S. forces struck an oil tanker, another vessel, and coastal areas, while the U.S. said it responded to Iranian attacks on its naval ships with self-defence strikes.

United States Central Command said it destroyed incoming Iranian missiles, drones, and launch sites, while Iran said it inflicted “significant damage” on U.S. vessels.

The confrontation comes amid ongoing, fragile talks about a possible peace framework and nuclear agreement, with mediators still pushing for de-escalation, the BBC has reported.

Despite diplomatic efforts, both sides continue to warn of further escalation if no deal is reached.