President Trump has confirmed Iran is in 'serious discussions' with the US following the steady build-up of American military forces in the Gulf. The US president said he hoped negotiations with Iran would lead to something acceptable, as tensions between the two countries remain high. Iran's top security official Ali Larijani also said a framework for negotiations was progressing.

Trump has threatened to intervene in Iran over its nuclear ambitions and after its deadly crackdown on anti-government protests. Iran has said it would respond 'immediately and powerfully' to any aggression by land or sea.

Iran is expected to begin a two-day, live-fire naval exercise on Sunday in the Strait of Hormuz - one of the world's most important shipping routes and a key route for energy supplies. About a fifth of the world's traded oil passes through the waterway. The US has warned Iran against any 'unsafe and unprofessional behaviour' near its forces in the area.

On Saturday, two explosions in Iran heightened anxiety in the country, causing casualties and raising concerns amid the backdrop of intensified state repression against demonstrators. As both nations navigate these fraught waters, the possibility of future negotiations remains the focal point in avoiding further military escalation.