Iran's armed forces fired missiles at unidentified targets late Thursday local time, the state media outlet Fars reported.

The latest military action in southern Iran came hours after the Pentagon said that Iran had launched a ballistic missile toward Kuwait and deployed attack drones in and around the strait.

Earlier Thursday, a White House official confirmed an Axios report that the U.S. and Iran have "mostly agreed" to the terms of an agreement to temporarily end the three-month-old war.

But President Donald Trump has yet to give final approval to the 60-day memorandum of understanding, which would extend an ongoing ceasefire and start nuclear negotiations, that official said.

Axios reported that American officials said Iran has signed off on that deal, but noted that Tehran has not confirmed that.

Major stock indexes rose Thursday, following the reported progress toward a temporary deal that could lead to the end of the 3-month-old war.

Treasury Secretary Scott Bessent was noncommittal when asked later Thursday if an agreement with Iran was indeed on the table.

"The teams have been going back and forth," Bessent said at a White House press briefing.

Trump has "several red lines" for any agreement, either in the short- or long-term, Bessent said.

Those include a demand that Iran turn over its highly enriched uranium and abandon its pursuit of a nuclear weapon. Bessent also said that the Strait of Hormuz must be free and open, as it was before the war.

The apparent developments in diplomatic progress between the U.S. and Iran — and corresponding optimism from markets — came in contrast to a slew of signs that tensions in the region are mounting.

The U.S. Treasury on Wednesday said it sanctioned Iran's "Persian Gulf Strait Authority," the agency Tehran launched earlier this month as it works to exert control over transit through the strait.

Bessent later warned Oman — which has reportedly been in talks with Iran about charging vessels transiting the key oil shipping route — not to allow a tolling system in the waterway.

"Oman, in particular, should know that the U.S. Treasury will aggressively target any actors involved — directly or indirectly — in facilitating tolls for the Strait and any willing partners will be penalized," Bessent wrote in an X post Thursday morning.

The post came one day after Trump, while insisting at a Cabinet meeting that the strait must remain unobstructed, said that "Oman will behave just like everybody else, or we'll have to blow 'em up."

Bessent, during Thursday's press briefing, said Oman's ambassador had assured him in a phone call that morning that "there were no plans for tolling the strait."

The sanctions announced Wednesday are part of "Operation Economic Fury," the Trump administration's effort to squeeze Tehran's finances that U.S. officials say has supplanted its military campaign dubbed "Operation Epic Fury."

"Iran's Persian Gulf Strait Authority (PGSA) is a joke, and today Treasury has sanctioned it," Bessent said on X Thursday morning prior to his post calling out Oman. "We have warned any corporate or state entities against paying tolls or hiding them as aid payments."

Meanwhile, Iran and the U.S. continue to use force in the strait, further eroding their shaky ceasefire that is nominally still in effect.

Iran on Wednesday night "launched a ballistic missile toward Kuwait that was successfully intercepted by Kuwaiti forces," U.S. Central Command said Thursday morning, calling the action an "egregious ceasefire violation."

The attack took place "hours after Iranian forces launched five one-way attack drones that posed a clear threat in and near the Strait of Hormuz," CENTCOM said in an X post. "All drones were successfully intercepted by U.S. forces which also prevented a sixth drone launch from an Iranian ground control site in Bandar Abbas."

The latest military and economic actions followed Trump's insistence Wednesday that he feels no pressure to make a deal with Iran before the midterm elections more than five months away.

"They're getting clobbered. Their economy is in free fall," Trump said of Iran during a Cabinet meeting.

"They thought they were going to outwait me, you know. 'We'll outwait him, he's got the midterms.' I don't care about the midterms," Trump said.

This is developing news. Please check back for updates.