Washington | US President Donald said that a deal to end the war with Iran is nearly complete and is expected to be signed over the weekend in Europe, as he called off military strikes on the gulf nation hours after threatening to take control of its oil industry.

Trump, speaking to reporters at the Oval office on Thursday afternoon, said Vice President J D Vance is expected to attend the signing ceremony which could take place in Europe as soon as this weekend.

The US president said he has spoken to leaders of the Middle Eastern countries, including Qatar, UAE, Saudi Arabia, Bahrain, Kuwait and Pakistan, regarding the latest round of negotiations.

Later, addressing a tele-rally in favour of Georgia Lt Governor Burt Jones, who is running for the post of Governor, Trump declared that the US has ended the war with Iran.

"I don't know if you heard, but we ended the war with Iran today (Thursday), and they have agreed never to have a nuclear weapon, something that we insisted on. That was the whole purpose," Trump said.

Earlier, at the Oval Office, Trump said that the stock market "likes the deal" and there would be a signing quickly. He said the Strait of Hormuz would reopen once the agreement is finalised.

"It's a very strong memorandum of understanding. That's a little conceptual, but it's something that's going to get done," Trump said. "It's a very detailed memorandum of understanding," he said.

Trump claimed that Iran has committed to permanently abandoning any effort to obtain a nuclear weapon.

"They will not purchase, develop in any way, shape or form a nuclear weapon. They will not have a nuclear weapon," Trump said.

"They've taken a pounding like very few people could take - and they want to make the deal a lot more than I do," Trump said in response to a question on how Iran came around to agreeing to a deal.

On Thursday morning, Trump threatened to hit Iran "VERY HARD" and take over Kharg Island, Iran's oil export hub.

A few hours later, he abruptly cancelled attacks, claiming progress in peace negotiations.

Trump's remarks about signing the peace deal with Iran over the weekend came at an event where he announced the restoration of commercial fishing in protected areas of the Pacific Ocean.

Over the past few weeks, Trump has repeatedly said that the US and Iran were close to a deal but a formal agreement remained elusive.