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Donald Trump says Iran either needs to agree to negotiate or prepare for bombing to begin again.

Iran still hasn't decided whether to take part in the next round of peace talks with the US in Pakistan and says it will only start negotiations when the US is ready to end its port blockade.

The US President has told CNBC he's prepared to relaunch military action if the talks don't proceed.

US Correspondent Richard Arnold told Mike Hosking we rarely see war and peace negotiations play out in public this way, and it’s chaotic.

He says there are mixed messages coming from Trump and some Iranians are suggesting some of his statements are causing delays.

Trump has since extended the ceasefire deal, hours before it was due to expire, and it will remain in place until Iran submits a proposal for discussion.

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