* Agreement struck in June has swiftly unravelled
* Both sides accuse each other of failing to stick to terms
* Strait of Hormuz remains closed
* Attacks on shipping on Tuesday rattled markets again
By Parisa Hafezi and Elwely Elwelly
DUBAI, Aug 12 (Reuters) - Iran and the United States remain
at loggerheads over efforts to agree a permanent end to the war
in the Gulf, according to a senior Iranian source who said there
had been no progress in talks to revive the interim deal agreed
in June and define a timeframe to implement it.
The comments were a further blow to hopes of a swift
resolution to the crisis, following attacks on shipping in the
region on Tuesday that pushed oil prices higher.
The deal agreed in June declared an "immediate and permanent
termination of military operations on all fronts", but quickly
unravelled, with U.S. President Donald Trump saying it was
"over" on July 7 and Iran's foreign ministry declaring it
"suspended" a week later.
The U.S. accuses Iran of failing to honour an agreement
under the deal to reopen the vital Strait of Hormuz shipping
route. Tehran says Washington has reneged on its commitments,
including lifting a blockade of Iranian ports and releasing
frozen Iranian assets.
"One of the issues that is being discussed via mediators is
the U.S. returning to the interim agreement and defining a
timeframe for implementing the commitments. There has been
absolutely no progress on this issue," the Iranian source said.
There was no immediate comment from Washington.
Thousands of people have been killed in the conflict, mainly
in Iran and Lebanon, since the U.S. and Israel launched attacks
on Iran on February 28.
Iran has struck U.S. assets and infrastructure in countries
including Oman, Jordan, Kuwait, Israel, the United Arab Emirates
and Saudi Arabia.
BOTH SIDES STEP UP RHETORIC
The June interim ceasefire agreement set a 60-day period,
extendable by mutual consent, within which Iran and the U.S.
were expected to reach a final deal limiting Tehran's nuclear
programme and lifting U.S. sanctions.
The Iranian source dismissed a report on Wednesday from
Turkey's Anadolu news agency that quoted Pakistani government
sources as saying they had agreed to extend that 60-day period.
"There is no talk of an extension because, from Iran's
perspective, there is no period that began and therefore nothing
to extend. The United States violated the interim agreement 48
hours after it was reached and withdrew from it a few days
later," the source told Reuters.
Both Iran and the United States have stepped up rhetoric in
the past two days.
Iran's top security official, Mohsen Rezaei, said on Tuesday
that the Strait of Hormuz would remain closed unless the U.S.
accepted Iran's conditions to end the war.
That followed a new demand from Trump on Monday that Iran
should pay compensation for people killed in 50 years of wars,
attacks and protests.
Throughout the conflict, Trump has alternated between
threats of escalation and claims that a peace deal is imminent.
Speaking to reporters after a visit to Ohio on Tuesday,
Trump said: "Iran is going fine, going just absolutely fine."
"We have a country that has been the bully of the Middle
East for 50 years, really 51 if you think about it ... and
they're no longer the bully of the Middle East."
ATTACKS ON SHIPPING
The Strait of Hormuz, a narrow waterway between Iran and
Oman and the entrance to the Gulf, handled a fifth of global oil
and liquefied natural gas flow before the war.
Benchmark Brent crude futures have surged since the
start of the war in February, hitting a peak of $126 a barrel,
roughly 75% above pre-war levels, with choppy trade reflecting
concerns over disruptions to Gulf oil supplies and shifting
signals on peace talks.
Those concerns were compounded by separate attacks on
shipping on Tuesday.
At the southern end of the Red Sea, four crew members were
killed in an attack by Iran-backed Houthis on a small cargo ship
in the Bab el-Mandeb Strait on Tuesday, the first deadly strike
on shipping by the group since the start of the war.
The U.S. military, meanwhile, said a U.S. Navy MH-60
helicopter fired two Hellfire missiles to disable the steering
gear of a Panama-flagged cargo ship.
The ship ignored repeated warnings to stop violating a naval
blockade on Iranian ports, the U.S. Central Command said.
Maritime sources told Reuters the vessel was hit off Pakistan
while sailing into the Gulf of Oman.
Brent futures rose 35 cents, or 0.4%, to $89.26 a barrel on
Wednesday, heading for a sixth day of gains.