Hopes grew for peace between Iran and the United States after Donald Trump said a deal could be ‌signed as soon as this weekend, even as Tehran said it had not made a final decision on a pact.The deal, if confirmed, would be the most significant diplomatic breakthrough yet to end the three-month-old ​war, which has killed thousands and sent global energy prices sharply higher after Iran all but closed the Strait of Hormuz to shipping.“We just made a great settlement of the war with Iran,” the US president told reporters at the White House on Thursday.“The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” he said, adding that US vice president ​JD Vance would attend the deal signing.Asked if Iran’s supreme leader Ayatollah Mojtaba Khamenei had approved the deal, Trump said: “I understand the answer is yes.”Since mid-March, Trump has repeatedly claimed a deal with Iran to end the ⁠war was close. The two sides have traded strikes this week, straining a ceasefire announced in April.Iranian media reported foreign ministry spokesman Esmaeil Baghaei as ‌saying ‌large ​parts of the agreement have been finalised, but Iran would not compromise on its red lines.“We have not reached a final conclusion on this matter,” he said. “This is a very important issue that is currently being reviewed by the relevant decision-making bodies.”Asian stocks joined a strong global rally on Friday ​on hopes that a peace deal may finally materialise, while oil prices fell to ​two-month lows.Still, tension remained high around the Strait of Hormuz, with US forces shooting down two Iranian one-way attack drones after Tehran attempted to strike commercial ships transiting the vital ‌waterway, a US official said.Iran’s military stopped a tanker from ​transiting the strait, state media said, reporting the sound of explosions early on Friday.Trump’s announcement came after he called off planned military strikes on Iran, citing progress ⁠in talks.“It’s a very strong memorandum of understanding that is a little ⁠conceptual,” Trump told reporters.Trump has repeatedly said ​any peace deal must ensure Iran cannot develop a nuclear weapon. Iran denies it is seeking such a weapon.Iran’s demands include the lifting of international sanctions, the release of billions of dollars in frozen assets and recognition of its control of the Strait of Hormuz.“The big thing is there will be no nuclear weapons in Iran. That means not developed and not purchased,” Trump later said during a campaign event held by telephone.Earlier on Thursday, Trump said the United States would hit Iran “very hard tonight” and wanted eventually to take its oil infrastructure hub at Kharg Island.The conflict has become a political headache for the White House, with polls showing Trump’s approval ratings sinking amid voter anger over high fuel prices.Some Republicans have openly worried that the ‌war’s unpopularity could cost them control of Congress ⁠in November’s midterm elections.But Trump’s political considerations also include satisfying Iran hawks within his Republican Party, who scuttled a prior effort, that any agreement closes Tehran’s path to developing a nuclear weapon.The reaction of other Middle East powers will also be crucial.Trump said on social media the agreement had ‌been approved by countries including Israel, Saudi Arabia, Qatar and the United Arab Emirates.Israeli prime minister Binyamin Netanyahu’s office said in a statement after he and Trump spoke that Israel was not a party ​to the memorandum of understanding with Iran.Netanyahu expressed his appreciation for Trump’s commitment to securing a deal that includes ​removing enriched material, dismantling enrichment infrastructure, limiting missile output and ending support for regional proxies, the summary showed.Tehran has been demanding an end to Israeli attacks in Lebanon, where fighting has continued in a parallel war between Israel and Iran-backed Hizbullah. – Reuters