He also listed what a potential deal would need to include: Iran agreeing not to develop a nuclear weapon, the reopening of the Strait of Hormuz, the removal of any sea mines, the lifting of the US blockade on Iran and the removal and destruction by the US of Iran's highly enriched uranium.
"No money will be exchanged, until further notice. Other items, of far less importance, have been agreed to. I will be meeting now, in the Situation Room, to make a final determination," Trump posted on Truth Social.
A senior Iranian source told Reuters that a political understanding over the war had been reached but not yet finalised.
Iranian Foreign Ministry spokesman Esmaeil Baghaei said that Iran and the US continued to exchange messages, but no final understanding had yet been reached amid ongoing indirect talks between the two sides, reported state-run news agency IRNA.
"As of this moment, while I am speaking with you, the exchange of messages continues, but a final agreement has not yet been reached," Baghaei said.
Baghaei also addressed the future of navigation through the Strait of Hormuz, saying the strategic waterway lay within the territorial waters of Iran and Oman and required special arrangements.
"Iran and Oman, as two responsible countries, must establish mechanisms that both protect their national interests and security as coastal states and reassure the international community that navigation through this route can be conducted safely," Baghaei said.
Earlier, citing unnamed sources, Fars said Trump's remarks are "a mixture of truth and falsehood" and an attempt to portray a "manufactured victory."
A draft agreement based on the principle of "commitment for commitment" was in the final stages of consideration in Iran, although no final decision had yet been made, the sources added.
The news agency reported that no provision in the draft obliged Iran to reopen the Strait of Hormuz without imposing fees or implementing security and monitoring arrangements.
It also rejected Trump's reported claim that Iran would dismantle or destroy its nuclear materials, saying no such commitment existed in the memorandum of understanding under discussion.
Fars further said a key element of the proposed deal was the immediate release of $12 billion in Iranian frozen assets, arguing that Tehran would not move to subsequent stages of negotiations until the funds were made available.
The report also said the draft included a provision for a comprehensive ceasefire in Lebanon in line with Hezbollah's position.
According to the agency, Iranian officials maintained that any final agreement must adhere to the Islamic Republic's "red lines" and include safeguards to ensure an immediate response in the event of any breach by Washington.
Meanwhile, Iran's top diplomat Abbas Araghchi told his Omani counterpart that reaching a deal with the US to end the Middle East war depended on Washington dropping its "excessive demands", Tehran's foreign ministry.
"The Iranian minister of foreign affairs ... indicated that arriving at a final agreement depended on ending the American party's attitude based on excessive demands and shifting and contradictory positions," the ministry said in a summary of a call between the ministers.
Iranian action in Strait of Hormuz 'lawful and consistent with international law': UN envoy
Iranian Ambassador and Permanent Representative to the United Nations, Amir Saeid Iravani, said on Thursday the actions of the Islamic Republic in the Strait of Hormuz are "lawful and consistent with international law."
Iravani made the remarks on Thursday before the United Nations Security Council (UNSC), high-level open debate titled “Upholding the Purposes and Principles of the UN Charter and Strengthening the UN-Centered International System.”
He said that Iran "could not allow such a critical waterway to be used as a corridor for hostile actions and military aggression against its sovereignty, territory, and vital interests."
Deputy Foreign Minister for Legal and International Affairs Kazem Gharibabadi said the Islamic Revolution Guard Corps’ recent response to what he described as US “actions and mischiefs” demonstrated the full readiness of Iran’s Armed Forces, according to Iranian news agency IRNA.
Gharibabadi emphasided the need to strengthen the country’s defense capabilities, adding, “The effort to bolster our defense will continue with determination because, now more than ever, we need strength and authority to stand firm against our enemies.”
Gharibabadi pointed to the military sector as a clear example of Iran’s strength, adding that national unity and cohesion are essential to reinforcing the country’s authority.
Referring to recent developments, the deputy foreign minister said the IRGC’s reaction to US actions illustrated the complete preparedness of Iran’s Armed Forces, warning that any continuation of such actions would be met with a proportional response.
He also highlighted the strategic significance of the Strait of Hormuz, describing Iran’s sovereignty over the waterway as critically important.
Iranian Foreign Ministry Spokesperson Esmaeil Baghaei condemned the threats by US officials against Oman, according to an X post from the Iranian Ministry of Foreign Affairs.
According to the statement, "He considered the threat by the US Treasury Secretary to impose sanctions on Oman" an attempt to "blackmail an independent state and a member of the United Nations."
He viewed the attempt as "evidence of moral bankruptcy" of the systems and governance in the US, and the threat of sanctions was "a completely unlawful measure that contradicts the fundamental principles of the United Nations Charter and international law."
Netanyahu eyes energy route through Israel amid Strait of Hormuz tensions
Israeli Prime Minister Benjamin Netanyahu said on Thursday that tensions surrounding the Strait of Hormuz could accelerate a global shift toward alternative energy routes away from the Gulf, suggesting that Israel could become part of a future transport corridor toward the Mediterranean.
Speaking at a seminar in the Jordan Valley, Netanyahu said global powers have historically responded to energy crises by diversifying supply routes and reducing dependence on unstable transit areas, according to the Israeli government’s press office.
“This is what will happen here as well,” he said.“We have an opportunity here to be part of this route toward the Mediterranean,” he added.
Netanyahu did not provide details about the project or corridor he was referring to or identify countries that could be involved.
US military denies claim US aircraft downed near Iran's Bushehr
No US aircraft were shot down near Bushehr, Iran, despite a claim made on Iranian state TV, the US military said.
Iran's state TV said early on Friday that a US aircraft was destroyed in Iran's Jam governorate in Bushehr, citing its governor Masoud Tangestani.
"No US aircraft were shot down. All US air assets are accounted for," the US Central Command said in a post on X.
Oil futures saw their biggest weekly drop in nearly two months as news circulatedf of a potential US-Iran deal that could see the Strait of Hormuz reopened and a ceasefire extended between Washington and Tehran, according to Al Jazeera.
Brent oil crude futures fell to $92.69 a barrel, a weekly drop of more than 10 percent.
“The market’s already taking the view that a deal’s going to be done and the Strait is going to be open,” Jason Wong, senior market strategist at BNZ in Wellington, New Zealand, told the Reuters news agency, as per Al Jazeera.
US military planes at Ben Gurion Airport cost Israel Airports Authority $248M in losses
The presence of US military aircraft at Israel’s Ben Gurion Airport has cost the country’s airport authority 700 million shekels ($248 million) in losses over the past two months, Israeli officials said Thursday, warning that the figure could rise to billions if the situation continues.
Sharon Kedmi, director general of the Israel Airports Authority, said Ben Gurion Airport is currently operating at only one-third of its capacity due to the presence of US military refueling aircraft, according to remarks carried by Israel’s public broadcaster KAN.
“We are only utilizing one-third of the airport’s operational capacity,” Kedmi said, adding that around 70% of activity at the airport has been restricted because of space and resources occupied by American military operations.
“We are at the limit of our capabilities,” he said, warning that additional flight cancellations will be announced in the coming days.
Kedmi warned that losses could climb into the billions if current conditions persist.
He added that airport authorities had expected 18 million passengers to pass through Ben Gurion this year, but current estimates suggest the figure may not exceed 15 million.
Foreign airlines are also unlikely to resume operations in the near future, he said, while up to 3 million passengers could be affected by disruptions and cancellations.
Dozens of US tanker aircraft are currently stationed at Ben Gurion Airport, Israel’s main international gateway near Tel Aviv.
Earlier this month, Israeli media quoted Civil Aviation Authority chief Shmuel Zakay as saying that US military aircraft at Ben Gurion were crippling civilian flights, delaying the return of foreign carriers and driving up ticket prices.
Zakay was also quoted as telling Israeli Transportation Minister Miri Regev that Ben Gurion had “turned into a military airfield with limited civilian activity,” warning that the situation was harming local airlines.
Pezeshkian thanks Pakistan, Malaysia for peace efforts, humanitarian stances
Iranian President Masoud Pezeshkian has “thanked Malaysia for its humanitarian stance and Pakistan for its initiative and effective efforts to reach an agreement” to end the US-Israel war on Iran.
In a post on X, Pezeshkian said that in his conversations with the prime ministers of Malaysia and Pakistan, he had emphasised “Iran’s commitment to diplomacy”.
“Iran’s policy is to expand cooperation with Muslim and neighbouring countries in all fields,” he added.Iran, US reach deal to extend ceasefire, pending Trump's approval
The United States and Iran reached an agreement on Thursday to extend their ceasefire and lift restrictions on shipping through the Strait of Hormuz, sources told Reuters. However, US President Donald Trump has yet to approve it and Iranian state media said it had not been finalised.
According to four sources familiar with the matter, the agreement would extend the truce for another 60 days and allow traffic to flow through the strategic waterway while negotiators tackle difficult issues such as Iran's nuclear program.
If approved by leadership in Washington and Tehran, it would amount to the biggest step towards peace since the conflict began because of US-Israeli strikes on February 28. News of the possible agreement came after a round of tit-for-tat attacks between the two countries, the latest such incident since the ceasefire took effect in early April.
Trump has not yet approved the deal, the sources said. Iran has yet to comment on news of the proposed deal, which was first reported by Axios.
Iran's Tasnim news agency, citing a source close to the negotiating team, said the text of the agreement had not been finalised or confirmed.
"We're not there yet, but we're very close, and we're going to keep on working at it," US Vice President JD Vance told reporters in Washington.
"I can't guarantee that we're going to get there, but right now I feel pretty good about it," Vance said.
The Trump administration has several times said a deal to end the fighting was close, only to have Iran dispute or downplay the claims.
The deal would specify unrestricted shipping through the strait and would require the US to lift its blockade of Iranian ports. The US would also lift some sanctions on Iranian oil sales.
The reports prompted oil prices to fall on hopes of a potential reopening of the Strait of Hormuz, a key transit route for roughly a fifth of the world's oil and liquefied natural gas supply.
Earlier, US Central Command said its forces had shot down five Iranian attack drones and struck a ground control station in the port city of Bandar Abbas that was about to launch a sixth. Kuwaiti forces then intercepted a ballistic missile fired towards the country, which hosts a large US base.
A US official also said no American aircraft were shot down near Bushehr, Iran, contradicting a report by Iran’s state television that a US aircraft had been downed there.
The incidents, while limited, highlighted the fragility of negotiations to turn the tenuous ceasefire into a lasting agreement to end the three-month-old war, which has killed thousands and upended global energy markets.
A US official, speaking on condition of anonymity, said the strikes were defensive and intended to maintain the ceasefire.
The Islamic Revolutionary Guard Corps said it had targeted the US base responsible for the Bandar Abbas attack, and that any repeat would lead to a "more decisive response", Tasnim news agency reported.
Kuwait condemned the attack and demanded that Iran immediately halt what it called a serious escalation.
The violence, the second flare-up this week, coincided with the Muslim holiday of Eid al-Adha celebrated across the region, where multiple countries have been caught up in the conflict.
Foreign Minister Ishaq Dar will meet US Secretary of State Marco Rubio in Washington on Friday.
Trump has repeatedly said an end to the war is close since mid-March, though the two sides have shown little public movement toward common ground. Iran has called for sanctions to be lifted, foreign assets to be unfrozen, and US forces to be withdrawn from the region. Washington has called for Iran to dismantle its nuclear program, which Tehran says is for peaceful purposes.
Iran says any peace deal must also end US ally Israel's attacks in Lebanon, but that conflict shows no signs of flagging. Israel claimed to have targeted the infrastructure of Hezbollah fighters in the southern city of Tyre; however, it succeeded mostly in killing civilians and destroying vital civilian infrastructure, and had carried out many similar strikes in the capital, Beirut.
Isral has displaced hundreds of thousands of people with a push deep into Lebanon in pursuit of Hezbollah. The Lebanese army said a strike had killed one of its soldiers.
The US warned Oman not to get involved in any effort with Iran to impose a toll in the Strait of Hormuz, and Trump on Wednesday threatened to bomb the country, despite a history of economic and military ties between the two countries.
Treasury Secretary Scott Bessent said Oman's ambassador had told him there were no plans to impose such tolls.
Oman has not mentioned the idea of joint control of the strait with Iran, with which it says it has discussed freedom of navigation. Tehran expressed solidarity with Oman after what it called "US officials' threats".