An Iranian flag is planted in the rubble of a police station, damaged in airstrikes in Tehran, Iran.

• The US war on Iran could end soon, said US President Donald Trump.
• The International Monetary Fund this week lowered its forecasts for global growth.
• Iran has given no public indication it would surrender its enriched uranium stockpile.

US President Donald Trump said a deal to end the war in Iran could be reached soon, although the timing remained unclear, while US allies were gathering on Friday to discuss reopening the vital Strait of Hormuz shipping route.

Trump said a two-week ceasefire, which ends next week, could be extended, although he did not believe that ‌would be necessary as Tehran wanted a deal.

“We’re going to see what happens. But I think we’re very close to making a deal with Iran,” he told reporters, adding that if an agreement was reached and signed in the Pakistani capital Islamabad, he may go there for the occasion.

In Islamabad, the venue of last weekend’s talks, troops were seen along routes leading into the capital on Friday, but roads were still open and the government had not issued orders for businesses to shut down, as they did prior to the last meeting.

READ | Lebanon, Israel ceasefire opens door to Iran talks and possible end to the war

The US-Israeli attack on Iran started on 28 February and has killed thousands of people and destabilised the Middle East.

The conflict also effectively closed the Strait of Hormuz, through which a fifth of the world’s oil and liquefied natural gas transits, threatening the ⁠worst oil shock in history.

The International Monetary Fund this week lowered its forecasts for global growth and warned the global economy risked tipping into recession if the conflict was prolonged.

France and Britain will chair a meeting on Friday of around 40 countries aimed at signalling to the US that some of its closest allies are ready to help restore freedom of navigation in the Strait of Hormuz, but only once hostilities cease.

Trump had called on other countries to get involved in the war and criticised NATO allies for failing to do so.

According to a note sent to invited nations, the aim of the meeting is to reaffirm full diplomatic support for unfettered freedom of navigation through the waterway and the need to respect international law.

Iran has largely closed the strait to ships other than its own, while Washington this week imposed a blockade on ships entering or leaving Iranian ports.

Only a trickle of vessels has passed through the strait since the war started, compared with an average of 130-plus each day before the conflict.

Optimism that a deal may be close fuelled a strong rally in stocks this week, with global markets holding near record highs on Friday, while benchmark oil prices were pinned below $100 a barrel.

A Pakistani source involved in mediating between the US and Iran said ‌on Friday ⁠there was progress in backdoor diplomacy and that an upcoming meeting between the two sides could result in the signing of a memorandum of understanding, followed by a comprehensive deal within 60 days.

“Both sides are agreeing in principle. And technical bits come later,” the source said on condition of anonymity.

One of the key sticking points has been over Tehran’s nuclear ambitions, with the US proposing at last weekend’s talks a 20-year suspension of all Iranian nuclear activity.

Tehran suggested a halt of three to five years, according to people familiar with the proposals.

Iran has demanded that international sanctions on it be lifted and Washington has pressed for any highly enriched uranium to be removed from Iran.

AFP reported that Trump claimed Iran had “agreed to give us back the nuclear dust”, using his name for the country’s enriched uranium stockpile (HEU), and the deal would include “free oil” as well as the opening of the Strait of Hormuz.

“We had to make sure that Iran never gets a nuclear weapon,” Trump said at the White House.

“They’ve totally agreed to that. They’ve agreed to almost everything, so maybe if they can get to the table, there’s a difference.”

Iran has given no public indication it would surrender its stockpile.

Two Iranian sources ⁠have said there were signs of a compromise on the HEU stockpile, with Tehran considering shipping part of it out of the country.