WASHINGTON, June 16, 2025 (AFP) - US President Donald Trump on Sunday urged Iran and Israel -- who are locked in an exchange of military strikes -- to "make a deal," but suggested they might need to "fight it out" first.

"I think it's time for a deal," Trump told reporters, as Israel and Iran exchanged a fresh barrage of missile strikes and threatened more devastation in a conflict that appeared to be intensifying.

"But sometimes they have to fight it out, but we're going to see what happens," Trump said, speaking at the White House before heading to Canada to take part in a G7 summit.

After decades of enmity and a prolonged shadow war fought through proxies and covert operations, the latest conflict marks the first time arch-enemies Israel and Iran have traded fire with such intensity, triggering fears of a lengthy conflict that could engulf the entire Middle East.

It began Friday, when Israel launched attacks that have killed top military commanders and nuclear scientists, and struck military bases, nuclear sites and residential areas across the country.

Trump refused to answer a question about whether he had asked Israel to pause airstrikes on Iran.

Earlier, a senior US official told AFP that Trump had vetoed an Israeli plan to assassinate Iranian supreme leader Ayatollah Ali Khamenei.

Trump wrote on his Truth Social platform that he believed the two sides "should make a deal, and will make a deal."

There are "many calls and meetings now taking place" on the issue and peace could be achieved "soon" between the longtime adversaries, he said.