Merkel - Concerned about Gulf, should use every opportunity for diplomacy

German Chancellor Angela Merkel holds the annual summer news conference in Berlin

BERLIN (Reuters) - German Chancellor Angela Merkel said on Friday that she was concerned about the situation in the Gulf, adding that every opportunity for diplomatic contact should be used.

"Of course I'm concerned. You can't look at this region without being concerned at the moment," Merkel told a news conference. "Every opportunity for diplomatic contact should be attempted to avoid an escalation."

The United States said on Thursday that a U.S. Navy ship had "destroyed" an Iranian drone in the Strait of Hormuz after the aircraft threatened the vessel, but Iran said it had no information about losing a drone.

(Reporting by Michelle Martin and Thomas Seythal; Editing by Paul Carrel)