Iran's president said Monday that more war with the United States was not in his country's interest after the two sides traded fire for the first time in over a month.
Tehran attacked US military targets in the Middle East in retaliation for American strikes on an island in the Strait of Hormuz, raising fears of a return to major hostilities.
After six months of war, the foes remain at an impasse, with Iran keeping the strategic Strait of Hormuz closed and the US persisting with a naval counter-blockade of Iran.
On Sunday the United States said it attacked Iranian rocket launchers on the island of Larak to prevent Tehran planting mines in the key shipping lane.
Iran responded Monday by targeting Jordan and the United Arab Emirates, saying it attacked US forces, but President Masoud Pezeshkian later in the day talked up dialogue.
"We continue to strive for a path of agreement and understanding, and we believe that continuing the war is neither in our interest, nor in the interest of the region," he said at a Shanghai Cooperation Organisation summit in Kyrgyzstan.
"We believe that the solution to the existing problems is dialogue and cooperation, and all capacities must be used to prevent the spread of insecurity and conflict," he added, according to a statement from the Iranian presidency.
State media reported that two people were killed in the US attack on Larak, with several others wounded.
Iran's powerful Revolutionary Guards, the ideological arm of its military, said they responded by striking two US air bases with ballistic missiles in Washington-allied Jordan, causing "heavy damage".
Jordan's army said it had intercepted eight missiles, without stating their origin.
Iran also claimed it targeted US personnel at an air base in the UAE and shot down an American drone over Hormuz.
Abu Dhabi responded by saying it intercepted a drone over the country's waters, but dismissed claims that Al Minhad Air Base had been targeted as "baseless".
The exchange of fire between the United States and Iran came at a time when hostilities had been subsiding.
In recent weeks, the administration of US President Donald Trump had prioritised "economic warfare" over military action.
Trump on Monday said on his Truth Social platform that Iran was "officially a Failed Nation".
"They have no Navy, they have no Air Force, they have no currency, they are not paying their soldiers or police, Inflation is at 300%, and their leadership is in total disarray and incapable of properly representing the country," he wrote.
The two sides remain vying for control of the Strait of Hormuz, with Tehran having blocked the passage of commercial ships since the war began and attacked vessels.
One-fifth of the world's oil passed through the strait before the US and Israel triggered the war with strikes on Iran on February 28.
Trump has insisted the US navy has "total control" of the strait and has even called it US territory, with Washington last week announcing it had completed clearing explosives from the waterway.
Diplomatic efforts, spearheaded by mediators including Pakistan and Qatar, have tried for months to bring an end to the war.
While a ceasefire was agreed in April and a memorandum of understanding towards a final peace deal was signed in June, no agreement has materialised.
The April ceasefire put an end to the most intense fighting, but sporadic attacks -- mainly around Hormuz -- have dimmed prospects for a final settlement.
The last US strike on Iran before Sunday came on July 29. Earlier in July, the American military attacked Iran for 13 consecutive nights.
Throughout the war, Iran has fought back by striking US facilities and allies in the Gulf region, hitting targets in Kuwait, Oman, Saudi Arabia and the United Arab Emirates, among others.
Its closure of Hormuz has caused pain around the world in the form of price hikes and shortages of fertiliser and energy.
With diplomacy stalled, Iran's foreign minister on Monday accused Israeli Prime Minister Benjamin Netanyahu of tricking Washington into going to war.
"In Hebrew, Netanyahu openly crows that he suckered the US administration into a war on Iran on behalf of Israel. Netanyahu explicitly laughs about how he 'influenced' America through 1,000 hours of airtime on US networks," Abbas Araghchi wrote in a post on X.
"In English, he praises POTUS' leadership. Serpent."
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