Trump set to make final decision on deal with Iran

US President Donald Trump said he would make a final decision on Friday over a deal with Iran to extend their ceasefire that would need to include opening the Strait of Hormuz and dismantling Tehran's capacity to make a nuclear weapon.

"I will be meeting now, in the Situation Room, to make a final determination," he said, referring to the White House's nerve centre for monitoring global crises.

Sources had said a deal was in the offing to extend a truce in place since early April for another 60 days to allow oil and gas shipments to resume through the strategic waterway while negotiators tackle tricky issues such as Iran's nuclear programme.

"Iran must agree that they will never have a Nuclear Weapon or Bomb. The Hormuz Strait must be immediately open, no tolls, for unrestricted shipping traffic, in both directions," Trump said, adding that nuclear material would be "unearthed" by the US.

There was no immediate response from Iran, but earlier its top negotiator Mohammad Baqer Qalibaf had sounded sceptical.

"We do not trust guarantees and words, only actions are the criterion. No action will be taken before the other side acts," Qalibaf said in a social media post, without elaborating.

"The winner of any agreement is the one who is better prepared for war the day after."

The war launched by the US and Israel on February 28 has killed thousands of people, mainly in Iran and Lebanon, and caused global economic pain by pushing up energy prices due to Iran's effective closure of the Strait of Hormuz.

Oil prices fell and stocks rose on Friday over the potential deal.

In his post on Truth Social, Trump said mines would be removed from the strait and ships trapped there may start to go home: "Say HELLO to your wives, husbands, parents, and families from me, your favorite President!"

He added that no money would be exchanged "until further notice" - a possible reference to Iran's demands for toll payments in the strait, war damage reparations or a release of Iranian funds frozen abroad.

Kazakhstan has signalled it is willing to take Tehran's stockpile of uranium enriched close to weapons-grade levels if the US reaches a deal with Iran, the head of the UN nuclear watchdog, Rafael Grossi, told the Financial Times.

Kazakhstan hosts an internationally controlled bank of low-enriched uranium to ensure fuel supplies for power stations in International Atomic Energy Agency member states.