Hegseth said the ceasefire with Iran "certainly holds" for now after a naval clash between Iranian and U.S. forces and renewed attacks on the UAE.

Iran flaunted its tightened grip over the Strait of Hormuz on Thursday with a video of commandos in ​a speedboat storming a huge cargo ship, after the collapse of peace talks that Washington had hoped would open one of the world's most important shipping corridors.

India condemned the attack on Fujairah that resulted in injury of three Indians and called for peaceful resolution of the war.

As President Trump again voiced optimism that Iran will "make a deal" to end the war, Tehran declared itself the regulator of Strait of Hormuz shipping.

Iran has said it is reviewing new U.S. proposals to end the war, as U.S. President Donald Trump threatens more bombing if no deal is reached.

President Donald Trump is pushing the limits of a fragile ceasefire with Iran as he orders U.S. forces to "guide" vessels through the Strait of Hormuz. Meanwhile, some Republicans in Congress are weighing a vote to restrain Trump's war powers.

Trump has expressed skepticism over the latest Iran peace plan, amid a widening fracture with European allies.

The United States on Monday kicked off an effort to “guide” stranded ships from the Iran-gripped Strait of Hormuz, as it tries to counter