US President Donald Trump has indicated that military attacks could resume if a ceasefire with Iran expires next week without a deal.

Speaking to reporters, Trump said the blockade of the Strait of Hormuz would remain in place and warned that bombing could restart if negotiations fail.

“I don’t know. Maybe I won’t extend it, but the blockade is going to remain,” Trump said. “Unfortunately, we may have to start dropping bombs again.”

At the same time, he expressed hope for a diplomatic outcome, saying he believes an agreement is still possible.

Iran earlier said it had reopened the Strait of Hormuz to commercial shipping but warned it could shut it again if the US continues its blockade on Iranian vessels and ports.

Uncertainty remains over how freely ships can pass through the vital waterway, which handles about 20% of global oil shipments.

The development comes as a 10-day ceasefire between Israel and the Iran-backed Hezbollah group in Lebanon appears to be holding.

The recent conflict has killed at least 3,000 people in Iran, nearly 2,300 in Lebanon, 23 in Israel and more than a dozen in Gulf Arab countries. Thirteen US service members have also been killed.

Trump also rejected any possibility of Iran imposing tolls or restrictions on ships using the Strait of Hormuz.

“No way,” he said, making it clear that such measures would not be accepted.