Iran and Israel exchanged fresh attacks early on Saturday, a day after Tehran said it would not negotiate over its nuclear programme while under threat and Europe tried to keep peace talks alive.

Fears of catastrophe rippled through the Gulf on Thursday when the Israeli military said it had struck a site in Bushehr on the Gulf coast - home to Iran's only nuclear power station - only to later say the announcement was a mistake.

After a week of fighting between Israel and Iran, President Donald Trumps says he could decide within the next two weeks whether the United States will strike Iran, keeping the chance of more negotiations open.