Hormuz Chaos, Lebanon Clashes Dent Trump's Peace Deal Hopes

Iranian Foreign Ministry spokesman Esmail Baghaei told state television that enriched uranium remains sacred to Iran and will not be transferred under any circumstances.

Trump said there were 'very good conversations' ongoing with Iran, indicating progress in back-channel discussions.

Israel struck what it called a 'terrorist cell' in south Lebanon as part of a flare-up in ceasefire tensions. President Emmanuel Macron said a French soldier was killed in an attack on UN peacekeepers in Lebanon and suggested Hezbollah, Iran's proxy, was to blame.

Several oil tankers made U-turns after approaching Hormuz, while the FPMC C Lord, carrying Qatari and Saudi crude, sailed south of Larak into the Gulf of Oman toward Fujairah in the United Arab Emirates.

Iranian First Vice-President Mohammad Reza Aref told Mehr News Agency that Iran is in control of the strait and will secure its rights either at the negotiating table or in the field.

Iran's Supreme Leader Mojtaba Khamenei issued a statement on National Army Day that the navy stands ready to make enemies taste the bitterness of new defeats.

A container ship was struck by an unknown projectile in a separate incident off the coast of Oman.

The UK Navy said a tanker was approached by IRGC gunboats before being fired at, with the vessel and crew reported as safe.

Iran reimposed restrictions on vessel traffic through the Strait of Hormuz, broadcasting that the waterway was closed to maritime traffic. One supertanker reportedly came under gunfire as owners of vessels in the area requested anonymity. The IRGC Navy warned ships not to leave anchorages in the Persian Gulf and Sea of Oman, saying approaching the strait would be treated as cooperation with the enemy and violators would be targeted.

Oil, fuel and natural gas prices fell on hopes a deal could end the conflict and allow more energy to transit through Hormuz. Brent crude dropped about 9% to around $90 a barrel, with dated Brent slipping below $100 a barrel and stocks rallying.

Trump repeatedly said 'no' when asked if he would release the $20 billion in frozen Iranian funds.

Axios, citing unnamed sources, reported a proposal under discussion in the United States to release about $20 billion of frozen Iranian funds in exchange for Tehran giving up its stockpile of enriched uranium.

President Trump told Bloomberg in a Friday phone interview that Iran had agreed to suspend its nuclear program indefinitely and that most of the main points in discussions were finalized.

Tehran announced on Friday that the Strait of Hormuz is open for commercial shipping. Iran also denounced the United States for continuing its naval blockade until a deal is signed, calling it maritime 'banditry'.