President Trump said earlier Thursday he called off new military strikes on Iran, hours after threatening to escalate the war.

US markets opened sharply higher after news of the agreement, with an official signing ceremony expected on Friday in Switzerland.

WASHINGTON, June 18 - President Donald Trump has insisted that the deal he has reached with Iran is superior to the one that President Barack Obama sealed in 2015, while Trump's critics say at this point he has gotten much less and given up much more to Tehran

Tehran is preparing for the July 9 burial of Supreme Leader Ali Khamenei, more than four months after his death, as authorities mobilise the Basij militia and mount a massive security operation ahead of what is expected to be a “historic” turnout.

President Donald Trump on Friday said Iranian leaders have not yet reached a deal with the U.S. to end the ongoing war because they’re “strong” and “proud,” but ultimately, he added, “they’ve got no choice” except to reach an agreement.

The president appears to be confronting the consequences of a cease-fire deal cobbled together in haste, with little movement toward resolving the key issues driving the conflict.

President Donald Trump says he believes the ceasefire with Iran is over. He says he’s not sure he wants a deal anymore and says the U.S. should “finish the job.”

In renewed fighting overnight, the US launched strikes on Iranian targets as "punishment" for attacks on tankers in the Strait of Hormuz. Iran has targeted US military sites in Bahrain and Kuwait in retaliation.