Donald Trump has canceled strikes against Iran and claimed that a peace deal is closer than ever as Tehran's most senior leaders have approved the agreement.

The President said that the 'final points' have been 'approved by all parties involved,' including Israel and America's Arab allies, and claimed the deal simply needed to be signed with a 'time and place' to be announced shortly.

Iran has not yet approved any text for an agreement, state media outlet Fars reported.

A senior Israeli official told local broadcaster Channel 12: 'We are not aware of any agreement being reached.' 

Trump's latest claim comes just hours after he said that the US was planning to seize Iran's Kharg Island oil depot and strike the country 'very hard tonight.'

He wrote on Truth Social: 'Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, canceled the scheduled strikes and bombings against Iran this evening.

'Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt and others.

'The Naval Blockade will remain in full force and effect until this Transaction is finalized - Time and place of the signing to be announced shortly.'

Trump earlier promised a Venezuela-style takeover of Iran's oil, including invading Kharg, which processes around 90 percent of the country's crude exports and serves as a major source of revenue for the Iranian economy.

Kharg, known as the 'Forbidden Island,' is heavily fortified by missile batteries, naval mines and Revolutionary Guard units, and taking it would require thousands of American boots on the ground.

'The United States will be hitting Iran (Whose Navy, Air Force, Radar, Anti Aircraft, and all other forms of Defense, together with most of its offensive capability, are GONE! ), VERY HARD TONIGHT,' Trump wrote on Truth Social on Thursday.

'At some point in the not too distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets, much like we have with Venezuela, which is working out brilliantly for both Venezuela and the United States of America.'

The US launched a fresh bombing raid overnight, the second round after Trump's retaliatory strikes on Tuesday following the shoot-down of an Apache helicopter. Two US airmen were rescued from the Strait of Hormuz by an AI-powered drone vessel.

Trump is seeking to push Iran into making a deal after months of stalemate since a ceasefire was declared at the start of April.

The President has lost patience with Iran, telling reporters yesterday that 'they keep playing us for suckers' and accusing Tehran's negotiators of 'tapping us along.'

Trump is adamant that Iran can never get its hands on a nuclear bomb and has demanded that Tehran halt all uranium enrichment for at least 20 years.

Iran has countered with a 10-year freeze and has discussed dismantling two of its three major nuclear sites while insisting on keeping one open, the New York Times reported.

US officials believe Tehran will settle for 15 years, but it is unclear whether that would be palatable to Trump, who said last month he would only accept a 'real 20 years.'

Trump trashed Obama's 2015 deal as 'the worst in history', an agreement critics savaged for leaving the Fordow site open, the same concession Iran is pushing for now.

Iran is also demanding that frozen assets be released in exchange for reopening the Strait of Hormuz, but the US has refused to hand the cash over upfront, insisting the funds be released only as 'progress payments' as Tehran delivers on the deal.

The US last night hit surveillance, communications and air defense facilities, US Central Command (CENTCOM) said, while Iran's military announced a 'punitive operation' targeting an American base in Jordan.

Iranian media reported explosions across the south, with at least three people wounded in Tehran province.

Jordan said it had shot down 20 Iranian missiles, while Kuwait's military said its air defenses had engaged 'hostile aerial targets'.

Bahrain, which hosts a US naval base, said an 11-year-old girl suffered minor injuries and homes and cars were damaged by 'sinful Iranian aggression'.

Mediators Pakistan and Qatar suggested backchannel efforts to negotiate an end to the war were ongoing in spite of the flare-up, though Islamabad cautioned it was 'hard to be an optimist' in light of the latest escalation.

The strikes took place while a Qatari delegation was in Tehran for talks, with a diplomatic source saying the discussions lasted into the early hours of the morning and were 'conducted in coordination with the United States.'

The renewed hostilities came as Pentagon chief Pete Hegseth said that if Trump required it, 'we'll negotiate with bombs.'

Iran's foreign ministry said on Thursday that 'the illegal and criminal attacks perpetrated by the United States in recent hours not only constitute a flagrant violation ... but also render the ceasefire practically meaningless.'

Turkey and Saudi Arabia, which also came under Iranian attack during the war, called for de-escalation on Thursday, with Riyadh 'urging all parties to prioritize wisdom' by resuming peace talks.

China, the biggest buyer of Iranian oil, likewise called for more negotiations on Thursday, with a foreign ministry spokesperson urging the warring parties 'to immediately cease military operations... (and) respond to the mediation efforts'.

Tehran's ally, Russia, echoed the sentiment, with Kremlin spokesman Dmitry Peskov saying the escalation risked more 'negative consequences for the situation in the region and the global economy.'

Iran has renewed its warnings over the Strait of Hormuz, a vital waterway for oil and gas transport, which it has essentially closed since early in the war, roiling global energy markets.

Iran's new body overseeing the strait on Thursday confirmed it 'will be closed until further notice.'

Majid Mousavi, the head of the Iranian Guards' aerospace force, had promised to 'make the region hell' for Tehran's enemies over their conduct in the waterway.

On Wednesday, three Indian sailors on a commercial vessel were killed when the United States attacked the ship off the coast of Oman, New Delhi said Thursday, summoning a US diplomat to lodge a protest.

The Iranian navy said it had also hit two ships trying to sail through the strait, state television IRIB and the Mehr agency reported.

On Thursday, CENTCOM said it had disabled another tanker, the Jalveer, for allegedly attempting to evade a US counter-blockade of Iranian ports.

The Indian embassy in Oman said on X that the crew of the ship was being evacuated by the Omani navy, without specifying their nationality.