Hello and welcome to the Guardian’s continuing coverage of the crisis in the Middle East.

Iran’s foreign ministry has contradicted claims from Donald Trump that a peace deal between Washington and Tehran could be signed as soon as this weekend.

The deal, if confirmed, would be the most significant diplomatic breakthrough yet to end the three-month-old war, which has killed thousands and sent global energy prices sharply higher. But Iran’s foreign ministry spokesperson, Esmaeil Baghaei, has said that while large parts of the text under negotiation have been finalised, “a final conclusion” has not been reached.

“This is a very important issue that is currently being reviewed by the relevant decision-making bodies,” Baghaei said, adding that Tehran would not compromise on its red lines.

Trump told reporters at the White House: “We just made a great settlement of the war with Iran.

“The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” he said, adding that vice-president JD Vance could sign for the US.

Since mid-March, Trump has repeatedly claimed a deal with Iran to end the war was close, but no agreement has materialised.

In other key developments:

• Trump said he was cancelling a third day of US airstrikes and bombings that he had earlier said would happen because “discussions” with Iran “have been brought to the highest level of Iranian leadership and approved”. He also said on social media: “Discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others.”

• Israel, however, said it was “not a party to” what prime minister Benjamin Netanyahu’s office described as an emerging memorandum of understanding between the US and Iran. But the office said Netanyahu had spoken with Trump and that the final agreement at the conclusion of negotiations would include the removal of enriched material, the dismantling of enrichment infrastructure, limits on missile production, and the cessation of Iran’s support for its terrorist proxies in the region – measures that have been red lines for Iran in the past.

• The strait of Hormuz would open “as soon as we sign” the documents of the “great settlement” reached with Iran, Trump said. “The whole Middle East is happy.”

• Iranian media said the country’s forces had stopped a “violating tanker” from entering the strait of Hormuz. The report from the Fars news agency – closely linked to Iran’s Revolutionary Guards – came shortly after the sound of explosions were reportedly heard near the port city of Bandar Abbas.

• Trump had earlier posted on social media that the US would seize Iran’s Kharg Island “in the not too distant future”, but later said the seizure would be off the table “if we sign this agreement”.

• The price of oil rose after Trump threatened a “very hard” attack on Iran, but plunged hours later after he said he was cancelling the strikes. US West Texas Intermediate crude futures fell 1.9% to $86.08 a barrel, on top of a 2.6% drop overnight, and Brent dropped 1.5% to $89.08 a barrel, having fallen nearly 3% overnight. Asian stocks joined a global rally, with South Korea’s Kospi surging 7.4% and Japan’s Nikkei up 2.7%.

• A strike wounded 10 staff members of a hospital in the Lebanese city of Tyre on Thursday, the facility’s director told the AFP news agency, as Israeli raids continued in the country’s south. All three of the historic city’s hospitals have been hit since the start of the latest war between Iran-backed militant group Hezbollah and Israel in early March.

• India’s government voiced a “strong protest” after three Indian seafarers were killed in US military strikes against oil tankers travelling through the strait of Hormuz.