Donald Trump has claimed a deal to end the war with Iran is close and "subject to finalisation of documents".
The US President's comments come after he called off a third consecutive night of strikes.
Hours after warning the US would strike Iran "very hard", Trump issued an update, saying negotiators had "just made a great settlement" with Iran, the BBC reports.
Speaking to reporters, Trump said the settlement was "subject to finalisation of documents, which should get done, over the next few days" and that there would "probably" be a signing ceremony in Europe.
However Iran's foreign ministry spokesperson Esmail Baghaei told state TV that "nothing has been finalised" and that reports of an agreement were merely "speculative".
Despite Iran's denial of an agreement, Trump's comments caused the price of oil, which has swung wildly since the beginning of the conflict due to the closure of the Strait of Hormuz, to drop.
He said: "We have 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. So, it's a very big thing."