‘Ceasefire over’, but US agrees to Iran's request to continue talks

Dubai: US President Donald Trump said on Friday that Iran had asked to continue talks and the US had agreed, but that the ceasefire was over.

His comments came after three Qatari and Saudi commercial tankers came under fire this week, prompting the US to hit Iranian sites, and Iran to respond with strikes on US military installations in neighbouring Gulf states on Thursday.

"The Islamic Republic of Iran has asked us to continue 'talks.' We have agreed to do so, but the United States has stated to them, in no uncertain terms, that the Cease Fire is OVER!," he wrote.

Qatari negotiators were meeting officials in Iran on Friday to seek to de-escalate tensions after Iran and the US exchanged fire and to discuss navigation through the Strait of Hormuz, a source with knowledge of the situation told Reuters.

Daily tanker traffic through the critical waterway appeared to have slowed on Friday, after the series of attacks stoked concerns about the recovery of global oil supplies and shipping, and highlighted the fragility of the interim truce.

Talks in Iran aim to address the implementation of the US-Iran memorandum of understanding and the issues that triggered the recent escalation between Washington and Tehran, including disputes over navigation in the strait, the source said.

Iran's semi-official Tasnim news agency said a Qatari delegation visited Iran in what analyst said appears to be an effort by Doha to consolidate its role as a mediator. It follows Qatari accusations against Iran over an alleged incident in the strait.

Oil prices eased on Friday but remained on track for weekly gains of 5% after the flare-up.