Pakistan's Prime Minister Shehbaz Sharif, whose government has mediated between Iran and the United States to end their war, said on Saturday a peace deal would "likely" be finalised within 24 hours.

"We are closer to a peace deal than ever before. With finalisation likely expected in the next 24 hours, Pakistan is preparing for the electronic signing of the peace deal immediately after, followed by technical level talks next week," he said in a post on social media platform X.

After weeks of stalled negotiations on the terms for an initial memorandum of understanding, both Washington and Tehran have signalled in recent days they were nearing an agreement.

Tensions, however, persisted as the United States said it downed multiple Iranian drones targeting commercial ships in the Strait of Hormuz early Saturday.

Iran's state broadcaster IRIB also quoted Foreign Minister Abbas Araghchi as saying that until a complete agreement was reached on all issues, "it cannot be said with certainty that an understanding has been achieved with the United States".

Pakistan has been pushing both nations to come to an agreement after a fragile ceasefire was struck in April and Islamabad hosted talks between the warring sides which ended with no deal to resolve the conflict that erupted in late February with US-Israeli strikes on Iran.

Sharif said in his post on Saturday that he was "confident that this historic peace deal will form a strong foundation for lasting peace", thanking both Washington and Tehran "for their ongoing commitment".