Tehran: Iran threatened Wednesday to target US military bases in the region if conflict breaks out, while President Donald Trump said he was "less confident" about reaching a nuclear deal.

Amid escalating tensions, a US official said staff levels at the embassy in Iraq were being reduced over security concerns, while the UK Maritime Trade Operations, run by the British navy, advised ships to transit the Gulf with caution.

Tehran and Washington have held five rounds of talks since April to thrash out a new nuclear deal to replace the 2015 accord that Trump abandoned during his first term in 2018.

Since returning to office in January, Trump has revived his "maximum pressure" campaign on Tehran, backing nuclear diplomacy but warning of military action if it fails.

"All its bases are within our reach, we have access to them, and without hesitation we will target all of them in the host countries," Iran's Defence Minister Aziz Nasirzadeh said in response to US threats of military action if the talks fail.

"God willing, things won't reach that point, and the talks will succeed," the minister said, adding that the US side "will suffer more losses" if it came to conflict.

The United States has multiple bases in the Middle East.

Iran and the United States have recently been locked in a diplomatic standoff over Iran's uranium enrichment, with Tehran defending it as a "non-negotiable" right and Washington calling it as a "red line".

Trump had previously expressed optimism about the talks, saying during a Gulf tour last month Washington was "getting close" to securing a deal.

But in an interview published Wednesday, Trump said he was "less confident" the United States and Iran could reach a deal, in response to a question on whether he believed he could stop Tehran from enriching uranium.

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