Iran on Thursday denied allegations that it attacked a South Korean cargo vessel in the Strait of Hormuz, as Donald Trump expressed optimism about a possible agreement to end the ongoing conflict while warning that military strikes could resume if negotiations collapse.
The denial followed accusations surrounding an explosion aboard the Panama-flagged cargo ship HMM Namu, which caught fire on Monday while navigating the strategically important Strait of Hormuz with 24 crew members onboard.
Iran’s embassy in South Korea rejected claims linking Tehran to the incident.
“It firmly rejects and categorically denies” allegations that Iranian armed forces were responsible for the attack, the embassy stated.
Trump, however, claimed Iran had “taken some shots” at the vessel and urged South Korea to participate in US-led operations aimed at restoring secure maritime movement through the strait.
The conflict, which began in late February following military operations launched by the United States and Israel, has significantly disrupted shipping and heightened tensions across the Middle East.
Iran subsequently responded with attacks targeting regional interests and tightened pressure around the Strait of Hormuz — a critical global oil transit route — triggering volatility in international energy markets.
Despite rising tensions, Trump suggested diplomatic progress may be 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 told reporters on Wednesday.
However, he also warned earlier that if Iran failed to honour agreements under discussion, military operations would resume “at a much higher level and intensity.”
Iran’s Foreign Ministry spokesman, Esmaeil Baqaei, confirmed that a new US proposal was still under review and that Tehran would communicate its response through mediator Pakistan after final deliberations.
Meanwhile, Iran’s parliament speaker, Mohammad Bagher Ghalibaf, accused Washington of attempting to force Iran into submission through “a naval blockade, economic pressure and media manipulation.”
Reports by US outlet Axios suggested both sides were nearing agreement on a preliminary memorandum intended to halt hostilities and establish a framework for renewed nuclear negotiations.
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Pakistani Prime Minister Shehbaz Sharif expressed hope that ongoing discussions would lead to “lasting agreement” and regional stability.
Diplomatic efforts also intensified in Europe, with Emmanuel Macron urging Iranian President Masoud Pezeshkian to end attacks affecting civilian infrastructure and commercial vessels near the Strait of Hormuz.
According to the Iranian presidency, Pezeshkian responded that a full reopening of the strait would require the lifting of the US naval blockade, while criticising what he described as Washington’s “threatening statements” and excessive demands.
France has since deployed the aircraft carrier Charles de Gaulle toward the southern Red Sea as part of preparations for a potential multinational mission to secure navigation routes in the region.
The initiative, reportedly backed by more than 40 countries, is being coordinated by Macron and Keir Starmer.
Global financial markets reacted positively to signs of possible de-escalation. Major US stock indexes, including the S&P 500 and Nasdaq, reached record highs, while Asian markets rallied and oil prices stabilised after recent declines.
Meanwhile, tensions also persisted on the Lebanese front, where Israeli strikes reportedly targeted Beirut’s southern suburbs on Wednesday, killing a senior commander of the Iran-backed Hezbollah, according to sources close to the group.
Lebanon’s health ministry said at least 11 others were killed in separate strikes across southern and eastern parts of the country, while the Israeli military reported that four of its soldiers were wounded in a drone attack in southern Lebanon.