President Donald Trump has said he is "not satisfied" with Iran's peace proposals and threatened to "finish the job" if the Islamic Republic does not agree to better terms to end the conflict.
The US received a response to its proposal from Iran, and talks over the weekend suggested a deal was close to being wrapped up.
Marco Rubio, US Secretary of State, has said American negotiators could determine within "the next few hours and days" whether an agreement was possible.
Mr Trump said Iranian negotiators were keen to making a deal, adding they "did not have a choice".
Inside a cabinet meeting on Wednesday, he said: "They’re negotiating on fumes."
"So far, they haven't gotten there and we're not satisfied with it, but we will be. Either that or we'll have to just finish the job," the President added.
The deal came after Iran's state TV disclosed details of a draft report, which the US has denied as a "complete fabrication".
The proposed agreement would have required Iran to restore passage through the Strait of Hormuz - which about a fifth of the world's oil flowed through before the war - to pre-war levels within a month.
Donald Trump made the comments at a cabinet meeting on Wednesday
|REUTERS
US military forces would be required to withdraw from the immediate vicinity of Iran and lift its blockade of Iranian ports.
The framework would have given management within the strait to Oman and Iran, a concession the President has said is unacceptable.
He said: "Nobody's going to control [the strait]. It's international waters and Oman will behave just like everybody else or we'll have to blow them up. They understand that, they'll be fine."
The report did not touch on the issue of nuclear enrichment, which Iran has described as a "red line".
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Marco Rubio said American negotiators could determine within 'the next few hours and days' if an agreement was possible
|REUTERS
Iranian sources have suggested the nuclear issue will be raised in a second round of negotiations.
Mr Trump also said he was not concerned about the political consequences of a prolonged war and its economic impact on Americans.
"They thought they were going to outwait me," the President said, referring to Iranian leadership.
"You know, 'We'll outwait him. He's got the midterms.' I don't care about the midterms."
Iran state TV said a proposed agreement would grant control of the Strait of Hormuz to Oman and the country
|GETTY
His comments follow the success of Mr Trump-endorsed Ken Paxton in the Texas Senate Republican Primary over incumbent Senator John Cornyn, who had held the seat since 2002.
Mr Trump added: "Look at what happened last night. That was a prelude to the midterms."
Cook Political Report projections for the US Senate seat shifted from "Likely Republican" to "Leans Republican" after Ken Paxton, current Attorney General of Texas, was selected.
Oil prices fell five per cent after the Iranian state TV released the draft deal, but regained about a fifth of its fall.
On Wednesday, the Islamic Revolutionary Guards Navy said it had allowed 23 ships to pass through the Strait of Hormuz in the previous 24 hours.
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