Iran denied on Thursday that it attacked a South Korean cargo ship in the Strait of Hormuz, as US President Donald Trump said a deal to end the war was “very possible” but threatened to resume bombing if negotiations collapsed.

Tehran’s embassy in Seoul said it “firmly rejects and categorically denies” allegations its armed forces caused the blast aboard the Panama-flagged HMM Namu, which caught fire on Monday with 24 crew on board. Trump claimed Iran had “taken some shots” at the vessel.

What did Iran say about the South Korean ship attack in the Strait of Hormuz?

Iran’s embassy in Seoul categorically denied that its armed forces were involved in the explosion and fire aboard the HMM Namu. The ship was transiting the Strait of Hormuz on Monday when the blast occurred.

Trump urged South Korea to join US-led efforts to restore shipping through the waterway after claiming Iranian responsibility.

What did Trump say about an Iran deal and the threat of bombing?

Trump told reporters on Wednesday that talks over the past 24 hours had gone well and that a deal was “very possible.” He warned earlier, however, that if Iran failed to honour what had been agreed, bombing would resume “at a much higher level and intensity.”

Signs of progress grew after Trump halted a short-lived military operation to reopen the strait, citing hopes for an agreement.

Iran has yet to formally respond to a new US proposal. Foreign ministry spokesman Esmaeil Baqaei said the proposal remained “under review” and that Tehran would communicate its position to mediator Pakistan after finalizing its views.

Parliament speaker Mohammad Bagher Ghalibaf warned that Washington was using a naval blockade, economic pressure and media manipulation to force Iran’s “surrender.”

How close are the US and Iran to a deal?

US outlet Axios, citing two officials, reported that both sides were close to agreeing on a one-page memorandum of understanding to end the war and set a framework for nuclear negotiations.

Pakistani Prime Minister Shehbaz Sharif, a key figure in the initial Islamabad talks, said he was “very hopeful” that the current momentum would lead to a lasting agreement. Oil prices held the week’s steep losses on deal hopes, while the S&P 500 and Nasdaq closed at record highs.

What role is France playing in the Strait of Hormuz crisis?

French President Emmanuel Macron told Iranian President Masoud Pezeshkian by phone on Wednesday that attacks on UAE civilian infrastructure and ships near the strait were “unjustified,” urging all parties to lift their dual blockade without delay or conditions.

France’s aircraft carrier Charles de Gaulle transited the Suez Canal en route to the southern Red Sea, where it will pre-position for a possible multinational mission to restore navigation. A Macron aide said the deployment was intended to signal that France was “ready to secure the Strait of Hormuz” and capable of doing so.

Macron and British Prime Minister Keir Starmer are leading the multinational initiative, which more than 40 countries have joined in military planning. Pezeshkian told Macron that any full reopening of the strait required the US to first lift its naval blockade. He added that excessive US demands and threatening statements had “further complicated the path of diplomacy.”

What is happening on the Lebanon front of the war?

Israel struck Beirut’s southern suburbs on Wednesday in the first such attack in nearly a month, killing a senior Hezbollah commander from the group’s elite Radwan force.

At least 11 others were killed in strikes across Lebanon’s south and east, the country’s health ministry said. The Israeli military said Thursday that an explosive drone strike had wounded four of its soldiers, one severely, in southern Lebanon the previous day.

Despite the diplomatic momentum, reactions inside Iran remained divided. One Tehran resident told AFP journalists that the prospect of any deal with the current Iranian government was “terrifying.”

Translator Azadeh, 43, said: “We’ve gone through so much hardship and suffering, and no achievements for the people? I honestly just hope they finish this regime.”