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WASHINGTON, July 9 (Reuters) - U.S. President Donald Trump's efforts to extricate himself from the unpopular Iran war hit a new snag with the latest exchange of attacks between the two sides, leaving him with limited options and a crumbling ceasefire.

Trump said the interim agreement to end the conflict was "over," and ordered new strikes on Wednesday after Iran targeted U.S. military sites in Bahrain and Kuwait following U.S. bombing of Iranian targets in response to attacks on tankers in the Strait of Hormuz.

More than three weeks after the signing of a "memorandum of understanding" to begin a truce between the United States and Iran, this escalation highlighted the difficulties Trump faces in reaching a comprehensive peace agreement and ending the war in a face-saving way.

Analysts say his options are limited and mostly bad.

Any major escalation beyond an exchange of fire carries the risk of a return to all-out war, but Trump stressed on Wednesday that the recent events would end "very quickly," as global oil prices rose by about seven percent.

However, backing down in the face of the Iranian challenge may increase Tehran’s sense that it can exert its influence over the world’s most important oil shipping route, whenever it wants to.

Trump may be hoping that the American bombing will force Iran back to the negotiating table to discuss the fate of its nuclear program, which he has identified as a key objective of the war, but most experts see little indication that Tehran will make the major concessions he seeks.

Aaron David Miller, a former Middle East negotiator in both Democratic and Republican administrations, said, "Trump has put himself in a difficult position... and whether through military or diplomatic means, he doesn't appear to be gaining much from Iran."

The White House has not yet responded to a request for comment.

Trump is under pressure

Trump is seeking to arrange an exit plan at a time when he is under pressure to bring a permanent end to a war that has killed thousands, caused economic damage to the country, and caused his approval ratings to plummet just months before the midterm elections in November.

A Reuters/Ipsos poll on June 23 showed Trump's approval rating dropping to 34 percent, its lowest level in his second term, reducing the chances of his Republican Party retaining control of Congress.

The latest attacks cast a shadow over the NATO summit attended by Trump this week in Turkey, and the strikes weakened hopes of turning the memorandum signed on June 17 into a final peace agreement to end the war, which began with US-Israeli airstrikes on February 28.

Most analysts doubt the two sides' ability to reach a comprehensive settlement within the 60-day negotiation period stipulated in the document. The document postponed the most difficult issues to intermittent discussions that have made little, if any, progress, and the fate of the next round of talks remains uncertain.

As for Iran, which has suffered heavy losses in its economy and military capabilities, it also finds itself under increasing pressure after Washington canceled an exemption that allowed it to sell oil to other countries, causing it to lose one of its biggest gains under the interim agreement.

However, its hardline rulers appear prepared to withstand further attacks. Some analysts have suggested that the exchange of fire between the two sides this week may have been aimed at positioning themselves in preparation for future negotiations.

Jonathan Panikoff, former deputy director of U.S. national intelligence for Middle East affairs, believes this pattern will continue for the foreseeable future.

Panikov, who now works at the Atlantic Council think tank in Washington, said, "Things will not return to all-out war... but the default situation now is controlled instability - recurring violence with no permanent way out."

Trump, who campaigned for a second term promising to avoid foreign interference and focus on Americans' economic concerns, described the interim agreement as a resounding victory for the United States, even as Iran made similar statements.

But most analysts agree that Trump, who once demanded Iran's "unconditional surrender," faces obstacles in achieving many of his frequently shifting war aims.

* Strait of Hormuz

The roots of the latest fighting lie in differing interpretations of what was stated in the initial agreement regarding control of the strait, and during the war, Iran demonstrated its ability to disrupt one-fifth of global oil shipments.

Iran sees itself as having a future role in managing this waterway, and perhaps even imposing fees, while Trump and US allies in the Gulf insist on a return to free and safe passage.

Jon Alterman of the Center for Strategic and International Studies in Washington said, "The Iranians have concluded that Trump does not want to slide into open war, and that the Gulf states are eager to return to normal."

He added, "Their bet is that Trump will wage a war for a few days, and that the Gulf Arab states will pressure him to stop it."

Among the factors that put pressure on Trump are the upcoming midterm elections and concerns about the Republican Party's declining chances due to rising gasoline prices caused by the war.

Laura Blumenfeld, a Middle East expert at Johns Hopkins University, said, referring to Trump's assertion that if he continues the war he risks becoming like President Herbert Hoover, who took office at the beginning of the Great Depression, "Trump, haunted by memories of former US President Hoover's failed economic administration, understands that he has to focus on the economy."