Iran's rejecting claims US naval ships and merchant vessels have sailed through the Strait of Hormuz.
Yesterday, Donald Trump announced it would begin escorting ships through the crucial strait.
However Iran’s Revolutionary Guard Corps says statements suggesting US-vessels have passed through the waterway are "baseless".
Retired US Army Major General Randy Manner believes Iran may attack more ships.
He told Mike Hosking that he hoped Iran would avoid direct conflict with the United States and cooler heads would prevail, but it’s probably going to escalate.
Manner says the United States is stuck – unable to see a way out of this situation and trying to avoid a unilateral attack as the world and the US economies continue to struggle with high oil prices.
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Catherine Field: Europe Correspondent on the talks between European leaders regarding the Strait of Hormuz, Middle East conflict
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