Trump signals Iran peace progress as Hormuz attacks threaten talks

Investing.com -- U.S. President Donald Trump said Washington was making progress in talks with Iran as Qatar urged both sides to reach a peace agreement, as incidents near the Strait of Hormuz raised escalation risks.

Speaking to reporters Friday, Trump said Iranian representatives wanted a deal and that negotiations were advancing. He also said U.S. forces had recently destroyed an Iranian air defense installation.

Qatar’s Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani said mediation remained active and warned that negotiators should not wait for a perfect agreement. Doha rejected reports that talks had failed, saying its mediators remained in contact with Washington and Tehran.

The diplomatic push followed reports that two projectiles struck Iran’s Qeshm Island in the Strait of Hormuz. Iranian authorities reported no casualties, while the country’s military claimed to have shot down an American drone over the island. U.S. Central Command described the situation around Qeshm as relatively calm.

Iran’s army separately warned that it would not allow damaged U.S. military bases in the region to be rebuilt. A senior Iranian lawmaker also threatened retaliation if Washington or Israel launched further attacks.

Shipping remained under pressure. The manager of the oil products tanker MT Velos said a crew member died after the vessel was struck by suspected projectiles in the Gulf on Thursday. Another tanker reported an explosion near its waterline while crossing Hormuz, with its crew safe.

Tehran has exempted vessels from China, India, Qatar and Iraq from some Hormuz restrictions, but the U.S. naval blockade continues to complicate maritime traffic.

Washington also imposed sanctions on eight Canada-based money services businesses accused of facilitating transactions involving sanctioned Iranian entities. The State Department warned Americans in the Middle East about possible Houthi attacks and threats to U.S. officials.

Regional fighting continued in Yemen, where government forces and Houthi rebels traded accusations over a deadly market attack. Saudi-led forces also reported intercepting drones near Riyadh and Mecca.

The disruption has added pressure to energy markets and regional shipping, raising the stakes for ongoing peace talks.