US President Donald Trump has claimed an initial agreement aimed at ending the war with Iran is close, following a period of heightened tensions and intermittent exchanges of fire. Trump announced on Thursday that the U.S. had "just made a great settlement of the war with Iran," speaking to reporters in the Oval Office.

This assertion comes despite Iran's foreign ministry spokesperson, Esmail Baghaei, telling state TV that reports of an agreement were speculative and "nothing has been finalised." Trump has previously made similar claims about nearing a deal with Iran.

The U.S. and Iran have been engaged in a volatile exchange of actions. The U.S. and Israel launched strikes on Iran on February 28, which Iran responded to with attacks on Israel and U.S.-allied states in the Gulf, leading to the effective closure of the Strait of Hormuz, a critical oil shipping route. Despite an agreed ceasefire in April, intermittent fire has continued.

Trump described the purported deal as securing "a deal that Iran will never have a nuclear weapon, which was the whole purpose of what we had to go through to get this." He indicated that a signing ceremony might take place "maybe in Europe once the documents are finalised," suggesting the documents are in "pretty final shape."

The potential agreement also includes the reopening of the Strait of Hormuz "as soon as we have it signed." Trump stated he had spoken with regional leaders, including Gulf allies and Israeli Prime Minister Benjamin Netanyahu, asserting that "The whole Middle East is very happy."

The office of the Israeli Prime Minister confirmed a conversation with Trump took place. However, it also stated that "Israel is not a party to the memorandum of understanding." The statement from Netanyahu's office detailed that the Prime Minister "expressed appreciation for Trump's commitment to work towards a final agreement that included the removal of enriched material, the dismantling of enrichment infrastructure, limits on missile production, and the cessation of Iran's" activities.

In the immediate aftermath of Trump's comments, the price of Brent crude oil fell by 4.4% on the day, dropping to approximately $89 a barrel. The fluctuating situation reflects ongoing geopolitical complexities in the Middle East.

Further details on the specific terms of the alleged agreement, the timeline for finalization, and the reactions from other international actors remain to be seen, particularly given Iran's official stance that nothing is finalized.