Iran says the intelligence chief of the Islamic Revolutionary Guard Corps, Majid Khademi, was killed in a US-Israeli strike on Monday morning.
Israel has since claimed responsibility for his death.
Earlier, US President Donald Trump appeared to set a deadline for Iran to reopen the Strait of Hormuz of 20:00 ET on Tuesday (01:00 BST Wednesday).
In an expletive-laden threat on Iranian infrastructure, Trump said, “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!”
In response, Iran warns of “much more devastating” retaliation.
Attacks continue across the region, including in Iran, Israel, and Lebanon.
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So far, thousands of people have been killed in the war, with the vast majority in Iran and Lebanon.
Meanwhile, oil prices have dropped from this morning’s $110 figure, which was reached after Trump threatened to destroy critical infrastructure in Iran unless it allows ships to cross the Strait of Hormuz.
Brent crude rose above $110 (£83.38) a barrel on Monday morning UK time before those gains eased after a report of US-Iran talks over a potential ceasefire.
News website Axios reported that the US, Iran, and a group of regional mediators are discussing the terms of a potential 45-day ceasefire that could lead to a permanent end to the conflict, citing US, Israeli, and regional sources.
In the hours following the Axios report, the global benchmark oil price fell from over $110 a barrel to around $107.
