Donald Trump has called off further military strikes against Iran, pointing to progress in talks with the Tehran leadership.
The US president claimed he was close to reaching a deal with Iran just hours after threatening to hit the country “very hard” and seize control of its oil industry.
He issued the warning as both sides continued to exchange fire that risked the return of a full-scale conflict in the Middle East.
But later on Thursday, in a post on his Truth Social platform, Mr Trump said: “Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening.”
He added: “Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others.
“The Naval Blockade will remain in full force and effect until this Transaction is finalized – Time and place of the signing to be announced shortly.”
Speaking later in the White House, Mr Trump said: “We just made a great settlement of the war with Iran, and we’re going to be subject to finalisation of documents, which should get done over the next few days.
“We’ll probably have a signing, maybe in Europe – and it’s a great thing.”
He said the Strait of Hormuz would open “as soon as we have it signed”, which he indicated could be as soon as this weekend.
The strategic waterway has become a flashpoint in the conflict, with Iran’s stranglehold on the channel disrupting oil and gas supplies and driving up fuel and food prices.
Mr Trump also said he understood the emerging deal had been signed off by Iran’s supreme leader Ayatollah Mojtaba Khamenei, although Tehran has yet to confirm it has agreed terms.
However, the president has claimed repeatedly in recent weeks a settlement was imminent, only for nothing to emerge.
Nevertheless, it marked a sharp about-turn from a previous post where he said the US would take Kharg Island, Iran’s main oil export terminal, although it is unclear how this would be achieved without ground troops.
Mr Trump likened the situation to Venezuela, where the US assumed control of the oil sector after capturing the country’s then-president Nicolas Maduro in January.
In an interview with Fox News, the US president said: “My preference has always been to take Kharg Island.
“I don’t know that America has the stomach for it to be honest.”
He added: “I don’t want to have boots on the ground. But if I wanted to we could put a small group of soldiers and take over the place.”
The latest apparent breakthrough after stalled efforts to end the war came as clashes took the shaky two-month truce to the brink.
Iran’s Foreign Ministry said the US attacks had “effectively rendered the ceasefire… meaningless” but notably stopped short of saying it was abandoning it.
Central to the negotiations has been the free movement of shipping through the Strait of Hormuz, which Iran effectively closed in response to the joint US-Israeli offensive at the end of February.
Tensions also remain over Iran’s nuclear plans, which Tehran insists are peaceful but the US and Israel fear could be used to build a weapon due to its stockpile of highly enriched uranium.
