The United States and a key mediator in the Middle East war expressed new hope of talks leading to a peace deal with Iran on Wednesday, after President Donald Trump halted a plan to guide ships through the Strait of Hormuz.

The US leader cited the chance to seal a deal in pausing his so-called "Project Freedom", as positive signs grew that both sides could come back to the negotiating table after weeks of deadlock.

"Great Progress has been made toward a Complete and Final Agreement" with Tehran, Trump wrote on his Truth Social platform, without providing further details.