Iran announced on Friday that it has not yet made a decision regarding the agreement announced by Donald Trump to end the war, downplaying the significance of the American president's remarks suggesting that a memorandum of understanding could be signed in Europe by the end of the week.

Trump canceled the new American strikes he had threatened to launch against Iran on Thursday night, saying that "a basis for understanding had been reached."

Speaking from the White House, Trump said: "We have just reached a great settlement to end the war with Iran. As soon as the documents are prepared, which should happen in the next few days, it is likely to be signed, possibly in Europe."

However, shortly afterward, the Iranian Foreign Ministry reiterated that Tehran had not yet decided whether to sign the agreement.

The ministry's spokesman, Esmail Baghaei, told Iranian state media: "So far, Iran has not made a final decision regarding the agreement."

American President Donald Trump (AFP).

For his part, Trump told reporters at the White House, in response to a question about whether the Supreme Leader of the Islamic Republic, Mojtaba Khamenei, had agreed to the framework agreement between Washington and Tehran: "As I understand it, the answer is yes." He described the deal as "a very strong memorandum of understanding."

He added that Vice President J.D. Vance could sign the document as early as "the end of this week."

Trump did not disclose details of the agreement's contents, saying only that it would ensure the immediate reopening of the Strait of Hormuz once signed and would prevent Iran from obtaining a nuclear weapon.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu's office said in a post on "X" that Trump had pledged that any final agreement would include commitments to remove enriched uranium from Iran.

Hopes of reaching a settlement to end the war brought relief to financial markets, leading to a decline in oil prices. Brent crude, the global benchmark, fell from $93.65 at 16:00 GMT on Thursday to $89.12 per barrel at around 03:50 GMT on Friday.

Asian markets also rallied on Friday morning, with Tokyo's Nikkei index rising by about 4 percent and Seoul's Kospi index gaining more than 7 percent.