US carries out defensive strikes on Iranian targets in the Strait of Hormuz after peace-talk hopes sent oil tumbling

A US official confirmed that American forces carried out defensive strikes on Iranian targets in the Strait of Hormuz, dramatically escalating tensions just hours after oil prices had tumbled more than 10 per cent on hopes of a diplomatic breakthrough. The strikes came as Iranian and Qatari negotiators had been circulating a draft peace proposal and Iran's supreme leader had granted his government new powers to negotiate with Washington.

Iran's foreign minister Abbas Araghchi had said peace consultations were 'very intensive' and a two-day plan to reopen the Strait of Hormuz was being discussed.

Trump told reporters at the Lincoln Memorial with a single word — 'No' — when asked if he would resume Iran strikes after Tuesday's midterms, just hours before the US strikes were confirmed.

Iran had flatly ruled out transferring its enriched uranium stockpile, with a foreign ministry spokesman declaring: 'Surrender is not in our vocabulary.'