Parisa Hafezi, Reuters

The frigate Jamaran fired at a training target released by a support ship, the Konarak. However, the support ship stayed too close to the target and was hit.

Navy veteran Michael White has been detained in Iran since 2018.

"I have ordered our naval forces to destroy any American terrorist force in the Persian Gulf that threatens security of Iran's military or non-military ships," Major General Hossein Salami said. "Security of the Persian Gulf is part of Iran's strategic priorities."

Lawmaker Ahmad Hamzeh did not say if the reward had any official backing from Iran's clerical rulers.

Khamenei called for national unity and said Iran's enemies tried to use the downing of a Ukrainian airliner to shift attention from the killing of Soleimani.

'Apologize and resign,' Iran's moderate Etemad daily wrote in a banner headline on Sunday, saying the "people's demand" was for those responsible for mishandling the plane crisis to quit.

Iran said on Saturday it was now capable of raising uranium enrichment past the 20% level and had launched advanced centrifuge machines in further breaches of commitments to limit its nuclear activity under a 2015 deal with world powers.

Britain has called Iran's capture of the Stena Impero in the Strait of Hormuz on Friday a "hostile act".

Iran has seized a foreign tanker smuggling fuel in the Gulf, state television quoted Iran's Revolutionary Guards as saying on Thursday

President Donald Trump threatened on Tuesday to obliterate parts of Iran if the Islamic Republic attacked "anything American," as Iran said the latest U.S. sanctions had closed off any chance of diplomacy.

He gave no specific reasons for his decision.