Iran has said it is reviewing the latest American proposals on ending the war, as US President Donald Trump threatened the country with a new wave of bombing unless a deal is reached that includes reopening the crucial Strait of Hormuz.

Hope that the two-month conflict could soon end buoyed international markets on Thursday, despite the US military firing on an Iranian oil tanker attempting to breach an American blockade of Iran’s ports on Wednesday. The price of Brent crude oil stabilised at around USD 100 a barrel as investors waited to see whether the strait would reopen to commercial ships on Thursday.