Tehran is looking for room to manoeuvre on bigger issues as a ceasefire deadline looms next week, observers say.

US President Donald Trump welcomed Tehran's announcement but said the US naval blockade would continue until a peace deal was reached.

Tehran is looking for room to manoeuvre on bigger issues as a ceasefire deadline looms next week, observers say.

A U.S. seizure of an Iranian cargo ship and reports of vessels coming under fire in the Gulf have pushed a fragile ceasefire with Tehran to the brink.