US President Donald Trump claimed an agreement to end the war with Iran was close on Thursday, hours after cancelling a third consecutive night of strikes.

Trump had declared the US would strike Iran “very hard”, but hours later said his negotiators had “just made a great settlement” with Iran.

He told reporters it was “subject to finalisation of documents, which should get done, over the next few days” and that there would “probably” be a signing ceremony in Europe.

However, Iran’s foreign ministry spokesperson Esmail Baghaei told state TV that reports of an agreement were “speculative” and “nothing has been finalised”.

Trump has previously claimed a deal with Iran was close without one materialising.

The US and Israel launched wide-ranging strikes on Iran on 28 February. Iran responded by attacking Israel and US-allied states in the Gulf, and effectively closing the Strait of Hormuz – a key shipping route for the world’s oil and liquefied natural gas.

Despite having agreed a ceasefire in April, the US and Iran have exchanged intermittent fire, including two rounds of tit-for-tat strikes this week. At the same time, Trump has also repeatedly talked up the prospects of a deal with Iran.

In the wake of his latest comments the price of Brent crude plunged to about $89 a barrel (£66), down 4.4% on the day.

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