US forces advised to hit Iran in 'creative' ways as Trump fires decapitation warning | Updates

US President denying any ongoing talks, describing the current diplomatic effort as the Islamic Republic's "last chance" to reach an agreement.

Speaking to reporters at the White House, Trump said he had agreed to continue pursuing talks at the request of Saudi Arabia, the United Arab Emirates, Qatar and other regional partners.

Although Iran's foreign ministry rejected claims that negotiations with Washington were taking place, Trump insisted discussions were underway.

"We are talking right now," Trump said, adding, "This is a last chance for them to sign a good document. I want to give them every last chance before decapitation."

Meanwhile, the US Central Command (CENTCOM) has reportedly sought fresh ideas from military analysts on new ways to pressure Iran.

According to a CNN report, an officer in CENTCOM's intelligence branch circulated an email last week inviting personnel to propose "new creative and unconventional ways to pressure and punish Iran."

The crowdsourcing-style request is seen as an unusual step for the US military and suggests the Trump administration is reassessing its options as it seeks to push Iran towards an agreement on Washington's terms.

A second source familiar with the matter told CNN that CENTCOM was reviewing all available options and acknowledged the need to rethink its current strategy.

"US Central Command has a long history of thinking and working in innovative ways," CENTCOM spokesperson Captain Timothy Hawkins said in a statement to CNN.

"Admiral Cooper, in particular, reaches out to members of our great team, regardless of rank, to achieve the highest levels of operational performance possible," he added.

According to Trump, the discussions are centred on reopening the Strait of Hormuz and addressing Iran's nuclear programme.

He said the strategic waterway could reopen "literally by tomorrow," while the process of Iran's denuclearisation would likely "take a little while."

The United States and Iran have remained locked in conflict since February 28, when the US and Israel launched surprise strikes against Iran. While intermittent diplomatic efforts have led to periods of relative calm, hostilities have continued, with Iran retaining its enriched uranium stockpiles and the capability to launch missiles and drones at US and allied targets in the region.

In a fresh development, Britain's maritime security agency, the UK Maritime Trade Operations (UKMTO), said early Tuesday that an unidentified cargo vessel was struck by an "unknown projectile" while transiting the Strait of Hormuz off the coast of Oman.

The agency said authorities were investigating the incident but did not disclose the vessel's identity or provide details about possible damage or casualties.