WASHINGTON, April 16 (Reuters) – U.S. President Donald Trump announced on Thursday that Lebanon and Israel had agreed on a 10-day ceasefire and said the next meeting between the United States and Iran may take place over the weekend, adding to optimism that the Iran war could be nearing an end.

Mr. Trump said Iran had offered not to have nuclear weapons for more than 20 years. Tehran’s nuclear ambitions were a sticking point at talks in Islamabad last weekend.

“We’re going to see what happens. But I think we’re very close to making a deal with Iran,” he told reporters outside the White House.

“I think we have a chance. And if that happens, oil goes way down, prices go way down, inflation goes way down, and...much more importantly than even that, you won’t have a nuclear holocaust.”

Mr. Trump said he was not sure a two-week ceasefire agreed with Iran last week would need to be extended beyond next week, and added that Tehran wanted to make a deal.

“We have a very good relationship with Iran right now, as hard as it is to believe. And I think it’s a combination of about four weeks of bombing, and a very powerful blockade.”

At last weekend’s talks, the U.S. proposed a 20-year suspension of all nuclear activity by Iran—an apparent concession from longstanding demands for a permanent ban. Tehran suggested a halt of three to five years, according to people familiar with the proposals.

Washington has pressed for any highly enriched uranium (HEU) to be removed from Iran. Tehran has demanded that international sanctions against it be lifted.

Two Iranian sources said there were signs of a compromise emerging on the HEU stockpile, with Tehran considering shipping part, but not all, of it out of the country, something it had previously ruled out.

Mr. Trump said in an earlier social media post that the Lebanon ceasefire would start at 5 p.m., aiming to halt a conflict between Israel and the Iran-aligned Lebanese group Hezbollah that was reignited by the U.S.-Israeli war against Iran.

He said he had held “excellent conversations” with Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun and planned to invite them both to the White House for “meaningful talks.”

He said later that the White House meeting could take place over the next week or two, and that if an Iran deal was reached and signed in Islamabad, he might go for that.

Mr. Trump said he had directed U.S. Vice President JD Vance, Secretary of State Marco Rubio and Chairman of the Joint Chiefs of Staff Dan Caine to work with Israel and Lebanon to achieve lasting peace.

The war with Iran spilt into Lebanon on March 2, when Hezbollah opened fire in support of Tehran, prompting an Israeli offensive in Lebanon 15 months after the last major conflict.

Thousands Killed

Thousands of people have been killed, mostly in Iran and Lebanon, since U.S.-Israeli attacks on Iran began on February 28, triggering Iranian airstrikes on Iran’s Gulf neighbors and renewed fighting between Israel and Hezbollah. Soaring energy costs have rattled investors and policymakers globally since Iran effectively closed the Strait of Hormuz, through which a fifth of the world’s oil and gas supply flows.

Closure of the strait has caused the worst oil price shock in history and forced the International Monetary Fund to downgrade its outlook for the global economy, warning prolonged conflict could push the world to the brink of recession.

A diplomatic source said the key Pakistani mediator, Army chief Asim Munir, arrived in Tehran on Wednesday and had made a breakthrough on “sticky issues,” although Tehran said the fate of its nuclear program had not been resolved. Mr. Trump has said the accord would open the Strait of Hormuz.

A senior Iranian official told Reuters that Mr. Munir’s trip had led to greater hopes for a second round of talks and an extension of the ceasefire, but said fundamental differences remain over its nuclear program.

Hegseth Says U.S. Troops Poised

U.S. Defense Secretary Pete Hegseth said troops were poised to restart combat operations if a deal was not reached.

A Pakistani security source told Reuters Washington was offering to lift sanctions and unfreeze billions of dollars’ worth of Iranian assets to secure a deal.

However, the source added that Iran would open the strait only if a permanent ceasefire is reached and there are United Nations guarantees that the U.S. and Israel will not attack again in future.

“We hope that the field marshal will have a draft in his hand when he flies out of Tehran,” the source said.