U.s. and Iran Trade Blame As Truce Unravels After Shipping Attacks

The comments were a further blow to hopes of a swift resolution to the crisis, following attacks on shipping in the region on Tuesday that pushed oil prices higher. The deal agreed in June declared an "immediate and permanent termination of military operations on all fronts", but quickly unravelled, with U.S. President Donald Trump saying it was "over" on July 7 and Iran's foreign ministry declaring it "suspended" a week later. The U.S. accuses Iran of failing to honour an agreement under the deal to reopen the vital Strait of Hormuz shipping route.

Tehran says Washington has reneged on its commitments, including lifting a blockade of Iranian ports and releasing frozen Iranian assets. One of the issues that is being discussed via mediators is the U.S. returning to the interim agreement and defining a timeframe for implementing the commitments. There has been absolutely no progress on this issue, the Iranian source said.

There was no immediate comment from Washington. Thousands of people have been killed in the conflict, mainly in Iran and Lebanon, since the U.S. and Israel launched attacks on Iran on February 28. Iran has struck U.S. forces in the region, and the U.S. has responded with further strikes, escalating tensions further.