A second round of talks between Washington and Tehran could take place within days, according to Trump. Meanwhile, Israel continues to press ahead with its military campaign against Iran-backed Hezbollah in Lebanon.
US President Donald Trump said the war in Iran is "very close to over" as mediators say they moved closer on Wednesday to extend the ceasefire between Washington and Tehran.
"I view it (the war) very close to over," Trump said in an interview with Fox Business News.
"You know what? If I pulled up stakes right now, it would take them 20 years to rebuild that country. And we’re not finished. We’ll see what happens. I think they wanna make a deal very badly," he added.
Trump said on Tuesday that a second round of talks could happen "over the next two days," telling the New York Post the negotiations could be held again in Islamabad.
United Nations Secretary-General António Guterres also said it was "highly probable" that talks will restart, citing a meeting he had with Pakistan’s Deputy Prime Minister Ishaq Dar.
Pakistan's Finance Minister Muhammad Aurangzeb said its "leadership is not giving up” on efforts to help the US and Iran achieve an end to the war.
Hormuz blocked, Israel's war on Hezbollah goes on
Trump's statement comes as the ceasefire that is set to expire on 22 April remains on shaky ground, with the US pressing ahead with its blockade on Iranian ports and Tehran issuing fresh threats in response. Nonetheless, officials said that they were making progress.
Negotiators are focusing on three key points that derailed last weekend's talks, including Iran's nuclear programme, the Strait of Hormuz and compensation for wartime damages, according to an official involved in the mediation efforts who spoke on condition of anonymity.
Despite the fragile truce oil prices fell on Wednesday and US stocks rose in hopes of an end to the war.
The war began on 28 February with joint US-Israeli airstrikes on Iran, prompting daily missile and drone strikes by Tehran across the region.
Shortly afterwards, Iran effectively shut down the Strait of Hormuz, a critical shipping route, which sent shockwaves through global markets.
Meanwhile, Israel continued its aerial and ground war on Iran-backed Hezbollah in Lebanon, with the country's National News Agency reporting several attacks in the south of the country on Wednesday.
The attacks come just after Israel and Lebanon held their first direct talks in decades in Washington, in a meeting hosted by US Secretary of State Marco Rubio. On Tuesday, the two sides met for more than two hours.
The US State Department said the discussions were “productive” and focused on steps toward launching direct negotiations between Israel and Lebanon.
Hezbollah denounced the meeting between the Lebanese and Israeli ambassadors to the US, saying it would not be bound by their outcome and that it would not lay down its weapons.
Despite a two-week ceasefire with Iran, Israel has continued its military campaign in Lebanon, which Tehran warned could jeopardise the truce.