US President Donald Trump predicted a swift end to the war with Iran as Tehran considered a US peace proposal that sources said would formally end the conflict while leaving unresolved key US demands that Iran suspend its nuclear program and reopen the Strait of Hormuz.

Washington has reportedly presented a one-page memorandum of understanding that would gradually reopen the Strait of Hormuz and lift the American blockade on Iranian ports.

There are signs of fresh momentum to end the war, but Trump himself has injected a note of caution.