The Strait of Hormuz has been a flashpoint since the US-Iran war started more than two months ago after the US struck several key Iranian sites and Iran retaliated

The US proposal to “guide” ships out of the Strait of Hormuz is unlikely to spur cautious vessel owners into action without direct security guarantees and established frameworks in place, according to maritime risk and Middle East experts.

President Donald Trump said his representatives are having “positive discussions” with Iran as the two countries trade peace proposals. Meanwhile, the average cost of gas in the US rose to $4.45 a gallon.

The announcement comes hours after a merchant ship reported being attacked by multiple "small" boats near the Strait of Hormuz.

U.S. President Donald Trump on Sunday called Iran's response to the latest American proposal to aimed at ending war "totally unacceptable."

President Donald Trump said the US Navy will start preventing ships from passing through the Strait of Hormuz, after US-Iran peace talks ended without agreement.

Iranian foreign ministry spokesman Esmaeil Baghaei said Iran is still looking over a proposal from the U.S. regarding an end to the war, adding that Tehran will not respond to “deadlines or ultimatums" and that those "mean nothing.

The U.S. conducted strikes against at least two locations in Iran on Thursday, a U.S. official said. The strikes in Bandar Abbas and Qeshm Island were defensive, the official said, and do not constitute a resumption of major combat operations against Iran.