President Donald Trump announced on Thursday that the United States (US) and Iran will sign a peace treaty in Europe likely this weekend, adding that Vice President JD Vance will represent Washington. His remarks came just hours after he promised calling off fresh strikes against the Middle East nation.

Regarding the Strait of Hormuz, Trump said the critical waterway would open after the deal is signed. He said Iran agreed to the peace treaty only because it has taken a "pounding". 

"We just made a great settlement of the war with Iran," Trump said. The US and Iran would "subject to finalization of documents, which should get done over the next few days, probably have a signing, maybe in Europe. It's a great thing."

"I don't want to say a deadline, because if I say a deadline, you'll say, 'Oh, he didn't meet the deadline'," he noted.

Despite Trump claiming that Washington and Tehran have agreed over the peace deal, Iran denied it and said no final deal has been reached yet. It said negotiations remain unresolved and an agreement has not been reached so far.

"So far, Iran has not reached a final conclusion on the agreement," Iran's Foreign Ministry spokesperson Esmail Baghaei said in a statement.