Pakistan Defence Minister Khawaja Asif said the United States and Iran are close to reaching "some sort of an arrangement", raising hopes of a possible breakthrough in efforts to end the conflict and restore stability in the region.

"Things are shaping up again in favour of a peace arrangement or a deal," he told Bloomberg News in Islamabad on Tuesday.

"The signals in the last two three days are that we are close to some sort of an arrangement," added Asif.

The comments came as talks between Iran and Oman on reopening the Strait of Hormuz to some maritime shipping reached an advanced stage, Al Jazeera reported, citing a spokesperson for Qatar's foreign ministry.

'Iran must pay for past attacks'

The Strait of Hormuz has remained a key focus of diplomatic efforts as US President Donald Trump has adopted a tougher stance towards Iran.

On Monday, Trump said Iran must pay for damage caused by past attacks, after accusing Tehran of publicly seeking compensation for war losses despite the issue not being raised during negotiations.

"I see that Representatives of the Islamic Republic of Iran are asking for compensation for the damage done to them during the last five month Military Conflict (started because, THEY WILL NOT HAVE A NUCLEAR WEAPON), even though it was never mentioned in any of our negotiations or meetings!" Trump wrote on Truth Social.

He then said Washington would make a similar demand of Tehran.

"But it is an interesting idea," he went on, "because now I am likewise demanding compensation from Iran, for all of the people that they have killed and gravely wounded with their roadside bombs and many conflicts, for which they are famous."

Trump also called for compensation for families of people killed during protests in Iran.

He said the payments should go to "the families of the hundreds of thousands of innocent protestors that Iran has killed over the last 50 years, not to mention the 52,000 that have been killed in the last five months."