Trump says he paused attack on Iran as negotiations continue

US President Donald Trump said on Monday he had paused a planned attack against Iran to allow for negotiations to take place on a deal to end the US-Israeli war, after Iran sent a new peace proposal to Washington.

Trump said he had instructed the US military that "we will NOT be doing the scheduled attack of Iran tomorrow, but have further instructed them to be prepared to go forward with a full, large scale assault of Iran, on a moment’s notice, in the event that an acceptable Deal is not reached."

Trump, under pressure to reach an accord that would reopen the Strait of Hormuz and limit the economic fallout of the war that he started in February, has previously expressed hope that a deal was close on ending the war, only for no agreement to materialize.

His post came after Iranian Foreign Ministry spokesperson Esmaeil Baghaei confirmed that Tehran's views had been "conveyed to the American side through Pakistan" but gave no details.

A Pakistani source confirmed that Islamabad, which has conveyed messages between the sides in the war in the Middle East since hosting the only round of peace talks last month, had shared the latest proposal with Washington. But the source suggested progress had been difficult.

The Iranian proposal, as described by a senior Iranian source, appeared similar in many respects to Iran's previous offer, which Trump rejected last week as "garbage".

It would focus first on securing an end to the war, reopening the Strait of Hormuz - a major oil supply route that Iran has effectively blockaded - and lifting maritime sanctions.

Contentious issues around Iran's nuclear programme and uranium enrichment would be deferred to later rounds of talks, the source said.

However, in an apparent softening of Washington's stance, the senior Iranian source said the United States had agreed to release a quarter of Iran's frozen funds - totalling tens of billions of dollars - held in foreign banks. Iran wants all the assets released.

The Iranian source also said Washington had shown more flexibility in agreeing to let Iran continue some peaceful nuclear activity under supervision of the International Atomic Energy Agency.

The US has not confirmed that it has agreed to anything in the talks.

Iran's Tasnim news agency separately quoted an unidentified source as saying the US had agreed to waive oil sanctions on Iran while negotiations were under way.

Iranian officials did not immediately comment on Tasnim's report, which a US official, who declined to be named, said was false.