US and Iran exchange fire, but Trump says ceasefire still in effect

The United States and Iran exchanged fire on Thursday (May 7) in the most serious test yet of their month-long ceasefire, but Iran said the situation returned to normal while the Americans said they did not want to escalate, Reuters reported. 

Iran's military said the US targeted two ships entering the Strait of Hormuz and carried out strikes on Iranian territory. The US military said it fired in response to Iranian attacks.