* Iran, the only neutral country in the Persian Gulf region, announced an unexpected peace initiative. President Rafsanjani said he was willing to resume direct contact with the United States.

* Frontline Marines continued fire over the Kuwaiti border yesterday. They report to have destroyed 25 Iraqi tanks.

* The USS Missouri participated in combat for the first time since the Korean War.

* UN Secretary General Javier Perez de Cuellar condemned reported Allied attacks on civilian traffic.