Washington: US President Donald Trump said that a peace deal with Iran is scheduled to be signed on Sunday and that the Strait of Hormuz will reopen immediately afterward. 

Trump earlier announced on Truth social: "The Deal is scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is OPEN TO ALL."

Trump also claimed that Iran now "no longer wants a Nuclear Weapon" and suggested the United States will work with Iran to remove enriched uranium at an "appropriate time."

He said the signing of the deal would make US relations with Iran "different and better," but warned that "we have the ultimate alternative" unless the process moves forward "quickly, easily and smoothly."

For global markets, Trump's reference to the Strait of Hormuz is likely to attract particular attention. The narrow waterway is one of the world's most critical energy transit routes, carrying a substantial share of internationally traded crude oil and liquefied natural gas.

India, one of the world's largest importers of crude oil, closely monitors developments in the Gulf and the Strait of Hormuz because of their direct impact on energy security and shipping costs.

Trump also sought to distinguish the proposed agreement from the Obama-era nuclear deal by stressing that no financial transfers would be involved.

“Unlike Obama’s Hundreds of Billions of Dollars in payments to them, including 1.7 Billion Dollars in green, cold cash, no money will exchange hands,” he wrote.

The President further suggested that nuclear material remaining in Iran would eventually be removed and destroyed.

However, Iranian Foreign Ministry spokesperson Esmaeil Baqaei reportedly denied that a memorandum of understanding (MoU) between Iran and the United States to end the conflict would be signed on Sunday, citing what he described as "the other side's hesitation."

Baqaei also stressed that any potential MoU between Iran and the United States "would merely serve as a framework for continuing talks" and should not be regarded as "a final agreement." He added that discussions on the nuclear issue are expected to continue over a 60-day period, according to Iranian state media reports.