The Iranian naval drill and the arrival of the USS Gerald R. Ford aircraft carrier near the mouth of the Mediterranean Sea underscore the tensions between the nations.

US-Iran tensions LIVE: US President Donald Trump launched a fresh threat on Tehran on Wednesday after mediatory talks between the two nations in Geneva. Trump said Iran would attract ‘bad things’ if it fails to strike a deal with Washington.

Rising oil prices are reflecting anxiety over the standoff between the U.S. and Iran. Analysts predict hostilities will send prices higher.

President Donald Trump previously indicated that the U.S. could use Royal Air Force bases in Fairford, England, and in the British territory of Diego Garcia in the Indian Ocean, to conduct the strikes if Iran does not agree to curb its nuclear program.

Trump said the world would know in 10 or 15 days whether Iran would reach a deal to avoid military action over its nuclear program.

Trump has repeatedly threatened military action against Iran, citing a deadly crackdown on anti-government protesters last month and then more recently over its nuclear program.

The latest round of negotiations on Tehran's nuclear program has ended without a breakthrough, and the threat of US military action still looms large. The ball seems to be back in Iran's court.

The head of the U.N. nuclear watchdog agency says Iran's enriched uranium "is still there," as he stresses the urgency of diplomacy to avert a U.S.-Iran war.