US President Donald Trump has warned Iran it will face "a much higher level and intensity" of strikes if it fails to agree to a peace deal that the two sides are reportedly closing in on.

The United States will pause escorting commercial ships through the Strait of Hormuz barely a day after it began doing so, President Donald Trump said, citing a desire to reach a peace deal with Iran.

US media is reporting that both sides may be close to agreeing a one-page memorandum of understanding to end the conflict.

Iran has accused the United States military of killing five civilians during operations in the Strait of Hormuz, escalating tensions around the strategic waterway. Iranian state broadcaster IRIB...