Missiles targeting Saudi oil refineries shot down, sources say

Asked what the exit strategy was for the Iran war, Trump said: "There's a military exit where we just keep going just the way we are, and we can even make it a heavier dose, and it's knocking out everything they have. Or there's a smarter strategy that you make a deal."

He added: "We're locked and loaded. We're ready to go."

The key waterway of the Strait of Hormuz, the entrance to the Gulf, has so far been the focus of a war that has killed thousands in almost five months, stoked global inflation and fanned fears of an economic downturn.

The Houthi blockade of the Red Sea is a major escalation in the conflict that threatens to further disrupt global oil supplies. Brent North Sea oil prices jumped to $100 a barrel this week for the first time since May.

Sources said Pakistan was exploring a path towards reviving stalled talks between the U.S. and Iran to end the war, after China initiated a push.