The blast happened a day before a planned naval drill by Iran in the Strait of Hormuz, the narrow mouth of the Persian Gulf through which a fifth of all oil traded passes.

By Emily Rose JERUSALEM, Feb 3 (Reuters) - Israeli Prime Minister Benjamin Netanyahu told U.S. Special Envoy Steve Witkoff on Tuesday amid efforts to revive diplomacy over Iran's nuclear programme that Tehran was unlikely to honor any potential agreement.

President Donald Trump said Iran is negotiating “seriously" with the U.S. as he keeps military options on the table and American naval forces move into the region.

President Masoud Pezeshkian said on Tuesday that he supported “equitable negotiations.” Talks are expected on Friday, as diplomats work to defuse the crisis.

Tensions have continued to rise between the two nations after the Iranian regime’s brutal crackdown on nationwide protests left thousands dead.

The president said the U.S. will "hopefully" make a deal with Tehran.

Oil ⁠prices were little changed as market participants weighed the possibility of a de-escalation in U.S.-Iran tensions.

Iran says it has had summoned all of the European Union ambassadors in the Islamic Republic to protest the bloc’s listing of the paramilitary Revolutionary Guard as a terror group.

By Parisa Hafezi DUBAI, Feb 2 (Reuters) - Iran’s leadership is increasingly worried a U.S. strike could break its grip on power by driving an already enraged public back onto the streets, following a bloody crackdown on anti-government protests,