US fires at Iranian targets as Trump demands Tehran accept deal
WASHINGTON - The U.S. struck military targets in Iran after the country fired on three Navy destroyers sailing in the Strait of Hormuz, an escalation that threatened to break apart a fragile ceasefire and reignite hostilities even as the two sides say they're discussing an end to the war.
"Just like we knocked them out again today, we'll knock them out a lot harder, and a lot more violently, in the future, if they don't get their Deal signed, FAST!" President Donald Trump said in a social media post.
Trump told reporters the ceasefire was still in effect despite the back-and-forth, downplaying Iran's actions while warning of consequences if a deal wasn't struck.
"They trifled with us today. We blew them away," Trump said in a brief appearance in Washington at the reflecting pool on the National Mall.
"I'll let you know when there's no ceasefire," he added. "You're not going to have to know, you'll just have to look at one big glow coming out of Iran."
The latest clash heightens tensions in the region as the U.S. attempts to exit a war now in its third month. The Trump administration has been waiting on Iran to respond to its proposal to reopen the Strait of Hormuz and end the conflict, which has killed thousands of people and triggered a global energy crisis.
Iran's assault on three U.S. warships involved "multiple missiles, drones and small boats," according to a U.S. Central Command statement, which added that "no U.S. assets were struck."
The U.S. forces "eliminated inbound threats and targeted Iranian military facilities responsible for attacking U.S. forces including missile and drone launch sites; command and control locations; and intelligence, surveillance and reconnaissance nodes," according to Central Command.
Iran's leaders hadn't indicated whether they'll accept the terms of the offer, though they've previously shown little sign of yielding on their nuclear program and accepting a moratorium on enriching uranium - both top American demands.
Stocks fell and oil whipsawed earlier Thursday amid doubts that a deal could be reached and the vital Strait of Hormuz reopened. U.S. stock-index futures fell in early Asia hours before recovering as the escalations rattled investors.
Even still, the president told reporters in Washington late Thursday that a deal was still possible.
"It might not happen, but it could happen any day. I believe they want the deal more than I do," Trump said.
"Investors are now assuming some resolution in the next month or so in terms of the Iran war or Strait of Hormuz, we are seeing energy prices down and everything else up," said Jun Bei Liu, co-founder of hedge fund Ten Cap Investment Management. "Now near term, there might be volatility re news headlines like today, but market will move to buy the dip unless new flare up becomes severe."
In a bid to ease the crisis, the U.S. president had announced "Project Freedom," an initiative to help ships transit the strait, before abruptly suspending it. Saudi Arabia and Kuwait have lifted restrictions on the U.S. military's ability to use regional bases, the Wall Street Journal reported Thursday, indicating that could allow the Trump administration to restart the effort to ease traffic through the strait.
A Central Command official referred to the Saudi and Kuwaiti governments on the reporting around the bases. Responding to whether Project Freedom would be restarted, the official declined to speculate on future operations. The Kuwaiti and Saudi embassies did not respond to requests for comment.
Washington has relayed a one-page memo to the Islamic Republic that could reopen the strategic Strait of Hormuz and lift the U.S. blockade of Iranian ports, according to the person familiar with the matter. That would set the stage for a month of talks aimed at securing a final agreement to bring the 10-week conflict to a close.
Iran is expected to send a response via Pakistan, acting as a mediator, in the next two days, a person familiar with the matter said on Wednesday, asking not to be identified discussing sensitive information. Iran's state-affiliated news agency ISNA said reports on elements of the proposal amount to "media speculation and atmosphere-building," adding that nuclear enrichment is not part of the current discussions.
Trump has come under intense domestic and international pressure to wrap up the conflict, with polls showing a growing distaste among Americans, six months from midterm elections in which energy costs will be a central focus. Gasoline prices breached $4.50 a gallon for the first time since July 2022, according to the American Automobile Association.
Adding further urgency for a resolution, Trump is set to meet Chinese President Xi Jinping May 14-15 in Beijing. The summit already has been rescheduled once because of the war, which has triggered a global energy crisis hitting top importers of Gulf crude, including China.
Trump said Wednesday the U.S. was "going to get" the Islamic Republic's stockpile of highly enriched uranium as part of the agreement, though there's been no indication Tehran is willing to make that concession.
Other outstanding issues include limits on Iran's ballistic missile program and its support for allied militant groups such as Lebanon's Hezbollah. Israel said it killed a Hezbollah commander in a southern suburb of Beirut, its first strike on the city since a ceasefire began in Lebanon last month.
Those are priorities for Israel, whose officials struck a cautious tone on the latest U.S. push to wind down the campaign against Iran. Ambassador to the United Nations Danny Danon told Army Radio on Thursday that "we need to wait and not come out with declarations and headlines" about a potential deal.
Prime Minister Benjamin Netanyahu said Israel was in close coordination with the U.S. on peace efforts with "no surprises."
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(With assistance from John Harney, Meghashyam Mali, Michelle Jamrisko, Abhishek Vishnoi and Anand Krishnamoorthy.)
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This story was originally published May 7, 2026 at 8:27 PM.