The United States and Iran have signalled they will hold a new round of ceasefire talks in Pakistan, two regional officials said Tuesday, as leaders on both sides warned they were prepared for more fighting if a fragile two-week truce expires without a deal.

The extension was announced just hours before it was set to expire. The president did not provide details on how long the new ceasefire extension will last.

President Trump said Friday that the leaders of Russia and Ukraine have agreed to his request for a three-day cease-fire and an exchange of prisoners, adding that such a halt to hostilities could be the “beginning of the end” of the long war between them.

The violence jeopardised the fragile truce between Iran and the US while the two sides considered a deal to end the fighting

As President Trump again voices optimism that Iran will "make a deal" to end the war, Tehran declares itself the regulator of Strait of Hormuz shipping.

Iran’s latest proposal to the U.S. calls for issues between the two countries to be resolved within 30 days. Here's where the U.S. stands as of Sunday. (AP Photo)