US still considers reengaging full-scale attack on Iran

US President Donald Trump indicates Washington and Tehran are still pursuing diplomatic talks as both sides denied a New York Times report claiming Iran rejected a ceasefire proposal by Trump that was conveyed to Tehran by Iraq's prime minister.

Separately, Iranian Foreign Minister Seyed Abbas Araghchi claims the core problem stems from US policies and practices, and stresses his country will not accept threats, coercion or force.

Donald Trump says on Friday dialogue between the two sides continues, and he believes Iran is getting more serious as the days go by.

REPORTER: "Should we expect to see major strikes?"

Trump says: "Look, we're talking to them right now. I think they're getting more and more serious as the days go by, for maybe the obvious reason, but we are talking to them right now."

Trump also suggests an unprecedented "massive" attack on Iran that he threatened earlier is unnecessary as it remained unclear behind-the-scenes negotiations could revive diplomatic efforts.

"We're locked and loaded and ready to go, but we're talking to them. So I think while we're talking, we'll see what comes of it," he adds.

Later that night, the US president spoke to a roomful of journalists at a rescheduled correspondents' dinner at Washington's Waldorf Astoria, after a shooting upended the first edition. He described the Iran talks were progressing "extremely well" and vowed to keep the Islamic Republic from obtaining a nuclear weapon.

Meanwhile in Kyrgyzstan where Iranian Foreign Minister Abbas Araghchi is attending a meeting of the Shanghai Cooperation Organization, the official told Iran's Tasnim news agency that no more mediators are needed to help end the conflict, pointing out the US must change its position.

He said Iran will continue its actions until the legitimate goals and demands of the Iranian people are realised.

Araghchi further made clear that his country will not "bow to pressure" particularly regarding the issues of the Strait of Hormuz, the chokepoint at the centre of the latest hostilities since Iranian attacks can effectively shut it down.

59 people have died in the exchange of fire and over 600 others injured in recent weeks, according to Iran's Health Ministry.

An alternative route for the region's oil is also under threat after the Iranian-allied Houthi rebels launched additional attacks on two Saudi Arabian oil tankers in the Red Sea, causing fires to break out on both.

The militia announces closing the Bab el-Mandeb Strait to Saudi-linked shipping in retaliation for the kingdom's blockade on Yemen.

Michael Ratney, a former US ambassador to Saudi Arabia, contends the Houthis have an "imperfect ability" to close the waterway and further disrupt global oil supplies and trade during the war.