Iran said on Saturday that it had suspended all commitments under the Islamabad Memorandum of Understanding (MoU), accusing the United States of breaching the agreement as military exchanges between the two countries continued.

The announcement by Deputy Foreign Minister Kazem Gharibabadi marks Tehran's clearest statement yet that it no longer considered itself bound by the Pakistan-mediated agreement, which was signed in June to end hostilities between Washington and Tehran, The Caspian Post reports, citing Middle East Eye.

The 14-point MoU included provisions to reopen the Strait of Hormuz, lift the US naval blockade and begin a phased de-escalation after weeks of fighting.

"The US has violated and suspended all its commitments within the framework of the Islamabad MoU," Gharibabadi was quoted as saying by Iran’s Fars news agency.

He added that Tehran had also suspended "its commitments and implementation of the agreement" and was now "busy defending the country".

Iranian officials had previously accused Washington of breaching the agreement and warned that continued attacks could jeopardise the deal.

"We also likewise have suspended all of our commitments as a result; we are no longer implementing those commitments," added Gharibabadi, who also heads Iran's technical negotiating team.

The announcement came as the conflict continued to intensify.

Iran's health ministry said US attacks since 6 July had killed at least 50 people and wounded more than 500, while the Islamic Revolutionary Guard Corps (IRGC) warned countries hosting US forces of a "corresponding response".

US strikes overnight damaged a desalination facility in Iran, disrupting drinking water supplies to about 10,000 people as the conflict seems to have entered a new phase.

Bahraini authorities repeatedly sounded air raid sirens, while Kuwaiti forces said they were intercepting incoming missiles and drones.