Iran was prepared to launch strikes on three locations in Ukraine following what it described as a Ukrainian attack on an Iranian merchant ship in the Caspian Sea last week, senior military adviser Mohsen Rezaei said.
In an interview with Iranian state television, Rezaei said Tehran had readied a military response but suspended it after Kyiv informed Iran that the attack had been accidental.
Last week, Iran accused Ukraine of targeting one of its merchant vessels carrying iron ore in the Caspian Sea, killing one crew member and injuring three others. Ukraine, however, said it had carried out drone strikes against two Russian ships transporting military material in the Caspian Sea.
Tensions eased after a phone call between Iranian Foreign Minister Seyed Abbas Araghchi and his Ukrainian counterpart, during which Kyiv reportedly assured Tehran that the strike was unintentional. Rezaei said that despite the explanation, Iran still expects compensation for the attack.
Earlier, on July 26, Araghchi alleged that Ukrainian President Volodymyr Zelensky ordered the attack at Israel's behest to draw Europe deeper into the conflict. He called the strike a violation of the UN Charter and said it "cannot go unanswered." A day earlier, he had urged the European Union to take decisive action against Ukraine during a phone conversation with EU foreign policy chief Kaja Kallas.
Meanwhile, diplomatic efforts continued on another major regional flashpoint, with senior US officials expressing optimism about a possible agreement with Iran to reopen the Strait of Hormuz.
US Treasury Secretary Scott Bessent said talks with Tehran were progressing and that a deal could be reached as early as Tuesday or Wednesday to restore navigation through the strategic waterway.
"We are in talks with the Iranians, and I think there is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalised position in this conflict," Bessent told CNBC.
He said reopening the strait would allow hundreds of ships stranded in the Gulf to resume movement, easing pressure not only on energy markets but also on fertilisers, refined petroleum products and industrial gases. Asked whether Iran would be allowed to charge tolls on passing ships, Bessent replied that the agreement would ensure "freedom of movement."
US Secretary of State Marco Rubio said the reopening of the Strait of Hormuz remains Washington's immediate priority, while Iran's denuclearisation remains the broader long-term objective.
"There is no final agreement yet on the Strait of Hormuz, but we're hoping that will happen very shortly," Rubio said.
Iran has not officially responded to the remarks.
Qatar also confirmed that mediation efforts between the United States and Iran remain ongoing. Foreign Ministry spokesperson Majed Al Ansari said regional mediators continue to exchange draft proposals between the two sides, although no direct US-Iran talks are currently scheduled. He added that while progress is being made, it is too early to set a timeline for a possible agreement.
