Iran's foreign minister said Qatar will present the United States with new proposals aimed at reopening the Strait of Hormuz, with a final US response expected soon.
Crude prices rose sharply after US President Donald Trump rejected an Iranian peace proposal aimed at ending the conflict.
Trump told Axios he expected talks to resume a day after rejecting Iran's proposal to reopen the Strait of Hormuz, but Tehran denies any negotiation plans.
Brent crude rose more than 3 percent to top $107 a barrel after Washington dismissed a Tehran proposal aimed at ending the war, according to Al Jazeera.
Oil prices resumed their global rise after Iran refused to ease conditions for reopening the Strait of Hormuz and US President Donald Trump rejected Tehran's proposal, amid fears of continued energy supply disruptions.
Trump's rejection of a proposed Iranian ceasefire and surging Treasury yields have added to investor unease.
Brigadier General Hossein Mohebbi says the strait is not open and describes it as a hunting ground for US underwater vehicles, according to Iran's state news agency IRNA.
Iran had offered to reopen the key shipping route and resume US talks within seven days if Washington agreed to its conditions, but the proposal was rejected, CNBC reports.
State-linked Mehr News published an illustration by cartoonist Kamal Sharaf referencing an alleged Iranian capture of a US autonomous underwater vehicle.
An Iranian Revolutionary Guard Corps spokesman said the corps' navy has targeted American unmanned underwater vehicles in the strait.
NBC News, citing three US officials, says the Marines suffered smoke inhalation and possible traumatic brain injuries.
Foreign Minister Abbas Araghchi's warning came after Washington rejected a seven-day roadmap aimed at ending the war and reopening the Strait of Hormuz.
President Trump said talks with Iran would resume next week, despite turning down Tehran's proposal for a seven-day truce and the reopening of the Strait of Hormuz.
Addressing the UN General Assembly in New York, a UAE minister of state called for reduced tensions across the region and unimpeded maritime transit.
Iran's armed forces, police and Basij militia conducted the Janfada exercise on Qeshm Island in the country's south, drawing thousands of participants, IRNA reported.
A senior Iranian military official said the country's armed forces control both shores of the strategic waterway.
Ghalibaf says market pricing contradicts the assertion that Iran does not control the strategic waterway.
Tehran wants a formal rejection from Washington on its Strait of Hormuz proposal even as it continues to push diplomacy, while Axios reports Trump expects US-Iran talks next week.
Parliament Speaker Mohammad Bagher Ghalibaf says market pricing contradicts a US assertion that Iran lacks control over the strategic waterway.
Mike Waltz said Trump rejected Iran's proposal because Tehran was "asking for everything up front," as sanctions pressure continues.