US President Donald Trump said on Sunday he had informed his representatives not to rush into a deal with Iran dashing earlier hopes that an agreement was imminent.

"The negotiations are proceeding in an orderly and constructive manner, and I have informed my representatives not to rush into a deal in that time is on our side. 

"The blockade will remain in full force and effect until an agreement is reached, certified, and signed. Both sides must take their time and get it right. There can be no mistakes! 

"Our relationship with Iran is becoming a much more professional and productive one. They must understand, however, that they cannot develop or procure a Nuclear Weapon or Bomb. I would like to thank, thus far, all of the countries of the Middle East for their support and cooperation, which will be further enhanced and strengthened by their joining the Nations of the historic Abraham Accords and, who knows, perhaps the Islamic Republic of Iran would like to join, as well!," wrote Trump in his Truth Social post, which criticised earlier US administrations for bad deals with Iran. 

In another post, he said: "If I make a deal with Iran, it will be a good and proper one, not like the one made by Obama, which gave Iran massive amounts of CASH, and a clear and open path to a Nuclear Weapon. 

"Our deal is the exact opposite, but nobody has seen it, or knows what it is. It isn’t even fully negotiated yet."

What's in the deal

Earlier, reports said both sides would sign a memorandum of understanding lasting 60 days, extendable by mutual consent. During the 60-day period, the Strait of Hormuz would reopen with no tolls, and Iran would clear its mines in the strait, an Axios report said.

In exchange, the US would lift its blockade on Iranian ports and issue some sanctions waivers to allow Iran to sell oil freely.

The US official acknowledged that would be a boon to Iran's economy but said it would also give significant relief to the global oil market. The official said Trump's key principle in the agreement is "relief for performance."

The draft MOU includes commitments from Iran to never pursue nuclear weapons and to negotiate over a suspension of its uranium enrichment and the removal of its stockpile of highly enriched uranium, the US official said.

Iran gave the US, through the mediators, verbal commitments on the scope of concessions it's willing to make on suspending enrichment and giving up nuclear material, according to two knowledgeable sources.

US forces would stay in the region during the 60-day period and only withdraw if a final deal is reached.

Some of Iran's frozen funds could be released if it hits certain milestones, but none would be freed upfront, a US official says. No sanctions would be permanently lifted before a final deal is reached, said the Axios report.

The draft MoU also makes clear that the war between Israel and Hezbollah in Lebanon would end.

Israeli Prime Minister Benjamin Netanyahu expressed concern about that condition during a phone call with Trump yesterday, an Israeli official said.