US President Donald Trump said Wednesday he believed a deal with Iran was "very possible" but threatened to again bomb the country if negotiations fell apart.
Despite Trump's optimism, Iran has yet to respond to a new US proposal, with its chief negotiator warning that Washington was seeking to force the Islamic republic's "surrender."
Positive signs that the foes could return to the table after weeks of deadlock grew after Trump halted a short-lived military operation to reopen the Strait of Hormuz, citing hopes for a deal.
Trump said Wednesday if "Iran agrees to give what has been agreed to," the war would be over, but if not, the bombing would resume "at a much higher level and intensity."
"We've had very good talks over the last 24 hours, and it's very possible that we'll make a deal," Trump later told reporters.
Iranian foreign ministry spokesman Esmaeil Baqaei told local media that the "US plan and proposal are still under review," and that Tehran would communicate its position to mediator Pakistan "after finalizing its views."
Mohammad Bagher Ghalibaf, Iran's parliament speaker who has taken the lead in negotiations, meanwhile warned that Washington "is seeking, through a naval blockade, economic pressure and media manipulation, to destroy the country's cohesion in order to force us to surrender."
- 'Durable peace' -
The US military said one of its warplanes fired on and disabled the rudder of an oil tanker Wednesday that tried to break Washington's blockade of Iranian ports.
Trump had said the day before that the US blockade would remain in place as Tehran kept up its own chokehold on the Strait of Hormuz.
But citing progress toward a deal, he said a new effort to reopen the vital trade route "will be paused for a short period of time to see whether or not the Agreement can be finalized."
Pakistani Prime Minister Shehbaz Sharif, a key figure in initial talks in Islamabad last month, held out hope for a deal.
"We are very hopeful that the current momentum will lead to a lasting agreement that secures durable peace and stability for the region and beyond," he said on X.
US news outlet Axios, citing two US officials, reported that both sides were close to agreement on a one-page memorandum of understanding to end the war and set a framework for more detailed nuclear negotiations.
Speaking to PBS, Trump insisted Iran would hand over its enriched uranium to the United States, without explaining how this key point of contention would be resolved.
- Stocks rally -
Iran's top diplomat Abbas Araghchi met his Chinese counterpart Wang Yi in Beijing on Wednesday, later saying the pair reviewed "the negotiations that are currently underway."
He added on X that Iran "looks forward to" Beijing "supporting the establishment of a new post-war regional framework that can balance development and security."
Trump's more conciliatory tone came hours after US Secretary of State Marco Rubio said the US had completed its offensive operations against Iran.
Investors welcomed those remarks and the decision to pause the US effort to guide ships through the strait, with the S&P 500 and Nasdaq closing at record highs on renewed breakthrough hopes.
But in Tehran one resident told Paris-based AFP journalists that the prospect of any US deal with the current government was "terrifying."
"We've gone through so much hardship and suffering, and no achievements for people?" said translator Azadeh, 43. "I honestly just hope they finish this regime."
The standoff in the vital waterway had led to claims of attacks by both sides earlier this week, in the sharpest escalation since a truce took effect on April 8.
Washington and Gulf countries have drafted a UN Security Council resolution demanding Tehran halt attacks, disclose mine locations and end efforts to toll shipping, Rubio said, with a vote expected in the coming days.
Its adoption remains uncertain.
- Elite Hezbollah force -
On the war's Lebanese front, Israel struck Beirut's southern suburbs Wednesday -- the first on the area in nearly a month.
The attack killed a senior Hezbollah commander from the group's elite force, a source close to the Iran-backed group told AFP.
At least 11 other people were killed in strikes across the south and east, according to the Lebanese health ministry.
Israel's army chief Lieutenant General Eyal Zamir meanwhile visited troops in southern Lebanon, vowing to "seize every opportunity to deepen the dismantling of Hezbollah."
