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.

What could the United States' blockade in the Strait of Hormuz look like and what impact might it have? Here's what to know.

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

(Bloomberg) -- The wait stretched on for Iran’s response to a US proposal to end 10 weeks of war, as the world’s largest oil company warned it would take months for the market to return to normal even if the Strait of Hormuz reopened immediately.

By Parisa Hafezi and Jacob Bogage DUBAI/DORAL, Florida, May 3 (Reuters) - President Donald Trump said on Sunday the U.S. would start an effort on Monday morning to free ships stranded in the Strait of Hormuz as a "humanitarian gesture" to aid neutral countries in the U.

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. and Iran continue exchanging attacks in the Strait of Hormuz, while Iran has yet to respond to a U.S. peace proposal aimed at ending the conflict.

Iran said Sunday it received a U.S. response to its latest offer for peace talks, a day after President Donald Trump said he would probably reject the Iranian proposal because