Egypt urged the United States and Iran to seize what it called an "available opportunity" for a deal to end the war, after President Donald Trump withdrew his threat to carry out further strikes on Tehran.

Cairo's foreign ministry said in a statement late Thursday it hoped "the available opportunity will be seized to reach a deal on the various outstanding issues and to prepare the atmosphere for reaching an end to the war and beginning a new phase of regional stability".

President Donald Trump announced a "great settlement" to end the US-Israeli war on Iran, saying he expected a deal to be signed in Europe as soon as this weekend.

Trump said on Thursday that Vice President JD Vance would represent Washington.

Cancelled strikes

The US leader's claim came just hours after he promised fresh attacks against Iran, before calling them off. There was no confirmation from Iran, and Trump revealed few concrete details about what each side had agreed to.

"We just made a great settlement of the war with Iran," Trump told reporters in the Oval Office.

The two sides would, "subject to finalisation of documents, which should get done over the next few days, probably have a signing, maybe in Europe. It's a great thing."

But Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said Tehran has not yet made a final decision on a possible agreement with the US and will not compromise on its "red lines" in negotiations.

Baghaei said reports regarding a time and place of signing the agreement remained speculative and that nothing had been finalised.

He added that a large part of the negotiating text had been finalised but the US repeatedly changed its positions during the talks.