President Donald Trump has announced that the United States is rejecting Iran's latest counter proposal passed on by Pakistan, writing, "I don't like it– totally unacceptable."

Wall Street and the ASX 200 have rallied after US President Donald Trump halted strikes on Iran and delivered positive news on a possible breakthrough peace deal.

"Most importantly, we have a deal that Iran will never have a nuclear weapon, which was the whole purpose of what we had to go through to get this. So it was a very big thing," President Trump said.

The US and Iran moved closer to an interim peace agreement meant to reopen the Strait of Hormuz and help end a war that has damaged the global economy and caused chaos in the Middle East, but conflicting messages from both sides have caused lingering uncertainty.

An interim deal between the US and Iran would extend the ceasefire, reopen the Strait of Hormuz, and pave the way for talks on Iran’s nuclear program, a diplomatic source told CNN.

The president said he had held discussions with Israeli Prime Minister Benjamin Netanyahu and several Gulf leaders, including those from Qatar, the United Arab Emirates, Saudi Arabia, Bahrain and Kuwa...