US President Donald Trump (L) delivers a speech as Qatar's Emir Sheikh Tamim bin Hamad al-Thani listens at the start of a state dinner at the Lusail Palace in Doha, Qatar. AFP
"We're not going to be making any nuclear dust in Iran," Trump said in Qatar, the second stop of his multi-day Gulf tour.
"I think we're getting close to maybe doing a deal without having to do this," he said about military action.
Oil prices plunged more than three percent on rising hopes for a nuclear deal.
Iran has held four rounds of talks with the Trump administration, which has sought to avoid a threatened military strike by Israel on Tehran's contested nuclear programme.
"You probably read today the story about Iran. It's sort of agreed to the terms," Trump said.
The president did not specify which remarks he was referring to, but an adviser to Iran's supreme leader Ayatollah Ali Khamenei, Ali Shamkhani, told ABC News that Tehran would give up stockpiles of highly enriched uranium as part of a deal in which Washington lifts sanctions.
Trump said that Iran should "say a big thank you" to Qatar's emir, Sheikh Tamim bin Hamad Al Thani, who had pressed the US leader to avoid military action against his country's giant neighbour.
Qatar has also been one of the key mediator in talks to end the 19-month Gaza war and release captives held by the Palestinian militants Hamas.
Trump again said without elaborating that the United States wanted to "take" Gaza, which has been obliterated by the war started on October 7, 2023.
Gaza will become a "freedom zone", Trump said, without elaborating.
He has also vowed to "go back on the offensive" should Iran-backed Houthi rebels launch attacks, despite a ceasefire agreement with Washington this month.
* This story was edited by Ahram Online.
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