The US and Iran have exchanged fire in the Strait of Hormuz, with the US destroying Iranian attackers and Iran accusing the US of targeting its ships and civilian areas. US President Donald Trump said American military destroyed Iranian attackers targeting three US Navy destroyers as they transited through the Strait of Hormuz.

Iran, meanwhile, said the US targeted an Iranian oil tanker and another vessel, and carried out air attacks on civilian areas along the coasts of Bandar Khamir, Sirik, and Qeshm Island.

The incident has raised concerns over the viability of a shaky ceasefire between the two countries, with Trump insisting it remained intact despite new violations, which he described as a 'love tap'.

The immediate outlook is that the US and Iran will continue to negotiate a deal to end the war, with Trump threatening to knock Iran out 'a lot harder and a lot more violently' if they don't sign a deal soon. The US and Iranian officials will likely continue to exchange statements and accusations, with the situation remaining volatile and unpredictable.