Donald Trump has suggested he is moving closer to striking a nuclear deal with Iran.

'I will be meeting now, in the Situation Room, to make a final determination,' the President posted on Truth Social on Friday. 

He gave three red lines before a deal could be struck: Iran must vow never to pursue a nuclear bomb, hand over its enriched uranium, and reopen the Strait of Hormuz.

Trump announced that the 'amazing and unprecedented Naval Blockade' imposed on Iran was now being lifted and told stranded crews they could start 'heading home' to their families.

'Say HELLO to your wives, husbands, parents, and families from me, your favorite President!' Trump wrote. 

Oil futures nosedived, with global benchmark Brent crude falling to $92 per barrel. 

The President said 'underwater mine sweepers' had already destroyed numerous water mines in the area, and demanded Iran remove or detonate any that remain. 

Trump said Iran's 'nuclear dust,' buried beneath mountains after US bombing raids, would be unearthed and destroyed by American troops in coordination with the regime and the International Atomic Energy Agency.

'No money money will be exchanged, until further notice,' Trump noted after the New York Times on Friday reported that the deal refers to a $300 billion investment fund after Tehran demanded reparations payments. 

Over the past few weeks, US and Iranian diplomats have been engaged in intense back-and-forth negotiations over the signing of a memorandum of understanding. 

The goal of the memorandum is to expand the current ceasefire for another two months, but immediately reopen the Strait of Hormuz, a vital waterway responsible for moving one-fifth of all global oil. 

A final agreement addressing Trump's nuclear demands would likely come at a later date. 

The current working memorandum reportedly states that Iran will agree to negotiate on its nuclear program. 

Control over the strait is one of the key factors limiting diplomatic progress toward ending the war. 

Tehran is demanding that the US withdraw its forces from the region and allow the regime to jointly control the strait alongside Oman.

Earlier this week, Trump threatened to bomb Oman, a key US Middle Eastern ally, if they work with Iran to control the strait. 

Iran is also seeking to impose transit fees on US-backed oil tankers in exchange for safe passage through the waterway. 

Despite claims by Trump and the Pentagon that Iran's navy has been eliminated, Tehran has effectively shut down movement through the strait by seizing oil tankers with speedboats and deploying explosive ocean mines. 

Trump, however, has continued to use the naval blockade of Iran's ports to cut the regime off from its lucrative oil trade with China and other Asian countries.

Vice President JD Vance said it was 'hard to say when or if' Trump will sign off on the latest peace proposal with Iran. 

'It's hard to say exactly when or if the president's going to sign,' Vance told reporters on Thursday evening. 

He added: 'We're going back and forth on a couple of language points.'

The latest flare-up in fighting happened less than a day earlier, when Kuwait intercepted missiles fired from Iran, according to US Central Command.