By Nandita Bose and Humeyra Pamuk WASHINGTON, March 25 (Reuters) - President Donald Trump will hit Iran harder if Tehran fails to accept that the country has been "defeated militarily," White House press secretary Karoline Leavitt said on Wednesday.

Lebanon’s Foreign Ministry has declared Iran’s ambassador to Beirut persona non grata, ordering him to leave the country by the end of the week.

Even as White House has insisted that negotiations are ongoing, Iran has rejected US President Donald Trump’s 15-point proposal and floated its own five-point proposal that demands reparations for the war and recognition of Iran’s sovereignty over the Strait of Hormuz.

Seven civilians were killed in early morning airstrikes on north-western Iran, state media reported on Wednesday, as the leadership continues to deny that it is in talks with the Trump administration

Press Secretary Karoline Leavitt says talks are continuing, after Iranian state media reported Tehran's five conditions to end the war.

President Donald Trump said that peace negotiations with representatives from Iran were ongoing: “They want to make a deal so badly.”

Iran’s military scoffed at the diplomatic efforts and launched more attacks Wednesday on Israel and the Persian Gulf region, including an assault that sparked a huge fire at Kuwait International Airport.

As the prospect of renewed negotiations with the U.S. re-emerges, opinion in Tehran remains divided, shaped by years of economic strain and entrenched political distrust. Some see diplomacy as a potential turning point.

CNBC's Eamon Javers reports on the latest news surrounding the Iran war.

Emergency procedures were activated immediately, with firefighting teams responding to the blaze, according to Kuwait's civil aviation authority.