The US and Iran traded threats of escalation as the weeks-long standoff in the Middle East dragged on without resolution. 

President Donald Trump told reporters on Wednesday that the US was in the "final stages" with Iran, sparking investor hopes that a deal was close. Treasuries surged and oil dropped.

But the president also threatened to resume attacks in the coming days if Iran didn't agree to his terms, repeating warnings he has made multiple times since the ceasefire took effect. Trump has repeatedly said the sides were close to an agreement, though none has emerged.

"We'll either have a deal or we're going to do some things that are a little bit nasty," he said. "But hopefully that won't happen."  

The US has insisted Iran surrender any plans for nuclear enrichment and reopen the Strait of Hormuz to commercial traffic - demands Tehran is refusing. Iran wants the US to end a blockade of its ports first. 

Iranian President Masoud Pezeshkian insisted the country was not on the brink of giving in. "Forcing Iran to surrender through coercion is nothing but an illusion," he posted on X. 

Source:ndtv