Donald Trump offered to 'permanently' open the Strait of Hormuz as a favour to China with Iran peace talks set to resume next week.

The US President declared that Xi Jinping will 'give me a big, fat hug' for opening the vital waterway as he sought to repair relations ahead of his visit to Beijing next month.

His blockade of Iranian ports this week has infuriated the Chinese, who buy 90 per cent of the regime's oil exports that flow through the Strait.

Washington has also agreed in principle to meet counterparts from Tehran following rare rebukes from Beijing.

Pakistan is mooted as a possible venue despite negotiations collapsing within 21 hours there last Saturday.

Iran's armed forces had threatened to expand its influence over shipping lanes by blocking the Persian Gulf, the Sea of Oman and the Red Sea if the US continued its naval blockade.

Reports suggested the US and Iran are considering extending the ceasefire by two weeks to allow further peace negotiations. But the White House denied it had formally requested an extension.

Press secretary Karoline Leavitt said that was 'not true,' adding: 'We remain very much engaged in these negotiations. You heard from the vice president [JD Vance] directly and the President this week that these conversations are productive and ongoing, and that's where we are right now.'

She added that the US 'feel good about the prospects of a deal'.

Meanwhile, Israel and Hezbollah were reportedly considering a US-proposed ceasefire to their own conflict following a historic summit between Jerusalem and Beirut on Monday. 

Israeli prime minister Benjamin Netanyahu was due to put it to his cabinet at 8pm local time, with reports the ceasefire could come into effect immediately.

As the US siege continued, with no signs of the blockade being lifted, Mr Trump seemed keen to make amends with Mr Xi as he revealed they had shared 'beautiful' letters.

He posted on his Truth Social platform: 'China is very happy that I am permanently opening the Strait of Hormuz. I am doing it for them, also – and the World. This situation will never happen again.'

He said the Chinese premier had assured him he is not providing weapons to Iran despite reports Beijing has helped Tehran target US bases. Mr Trump added: 'We are working together smartly, and very well! Doesn't that beat fighting? But remember, we are very good at fighting, if we have to – far better than anyone else!'

His offer to China is the latest in a series of bold and sometimes contradictory positions. Mr Trump initially said he would bomb Kharg Island before asking allies for help to reopen the Strait. Since then he has sought to blockade the vital waterway.

In earlier media rounds, he told Fox News the Iran war was 'close to over' and there are 'an amazing two days ahead'. Vice president JD Vance said Mr Trump is seeking to make a 'grand bargain', suggesting Washington could give Tehran sanctions relief in return for ending the naval blockade.

But Mr Vance cautioned: 'There is a lot of mistrust between Iran and the United States of America. You are not going to solve that problem overnight.'

For now, America has continued to prevent any vessel entering or leaving Iranian ports, with at least eight ships ordered to reverse course. Some 15 US warships and thousands of troops are marshalling the blockade, with those ships refused access instructed to enter a holding area.

Iran has threatened to instruct the Houthis, its terror proxy in Yemen, to block the Red Sea in retaliation.

Ali Abdollahi, commander of Iran's Khatam al-Anbiya Central Headquarters, described America's siege as 'a prelude to a violation of the ceasefire'.

The Red Sea connects to the Suez Canal, which handles 15 per cent of global trade, while Hormuz, which was first shut by Iran, handles a fifth of global oil and gas. Thousands more US troops are also expected to arrive in the region in the coming days, including 6,000 aboard aircraft carrier USS George H.W. Bush and several warships escorting it.

Ms Leavitt said Mr Trump 'has wisely kept all options on the table' in the event Iran fails to make a deal 'that is acceptable to the United States'.

It was reportedly Tehran's refusal to cease uranium enrichment for at least 20 years that was a sticking point which saw talks collapse on Saturday.

Foreign ministry spokesman Esmaeil Baqaei said the right to peaceful use of nuclear energy could not be 'taken away under pressure or through war'.

Meanwhile in Lebanonc the Israel Defence Forces claimed to have struck 200 Hezbollah sites in 24 hours. It followed the first meeting between Israel and Lebanon in more than three decades in Washington on Monday as they discussed how to disarm the Iranian proxy terror group.