By Colleen Howe BEIJING, May 8 (Reuters) - Oil prices were up more than 1% on Friday after renewed fighting broke out between the U.S. and Iran, threatening a shaky ceasefire and dashing hopes for progress on reopening the Strait of Hormuz,

Tehran has laid out a set of new rules for vessels seeking to transit the Strait of Hormuz, according to a document seen by CNN, pressing ahead with efforts to formalize control over the waterway in defiance of US warnings.

Mediators are pushing a short-term memo to guide a month of negotiations

The U.S. military said it struck Iranian military targets after, it said, Iran fired on U.S. warships in the Strait of Hormuz. President Trump threatened more if Iran didn’t agree to a peace offer.

Asia-Pacific markets open lower Friday, as concerns grew over renewed hostilities between Iran and the U.S. amid a fragile ceasefire.

"Our hope and expectation is for an agreement sooner rather than later," Pakistani Foreign Ministry spokesperson Tahir Andrabi told NPR.

US forces targeted Iranian military facilities responsible for launching a series of “unprovoked” missile, drone and small boat attacks against American warships transiting the Strait of Hormuz, US Central Command said on Thursday.

The intelligence analysis also allegedly concluded Tehran still retains major missile capabilities despite Trump's claims otherwise.