The proposed deal represents the most significant diplomatic breakthrough yet to end a conflict that has killed thousands and driven global energy prices sharply higher.

"We just made a great settlement of the war with Iran," Trump 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 Vice President JD Vance would attend the signing ceremony.

Asked if Iran's Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal, Trump said, "I understand the answer is yes."

Tehran Urges Caution

Despite Trump’s optimism, Tehran indicated that a final agreement has not yet been locked in. The two sides have traded strikes this week, severely straining a ceasefire originally announced in April.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated that while large parts of the agreement have been finalized, Iran will not compromise on its red lines.

"We have not reached a final conclusion on this matter," Baghaei said. "This is a very important issue that is currently being reviewed by the relevant decision-making bodies."