Trump says getting close to deal to avoid Iran military action

ABU DHABI — US President Donald Trump said Thursday a deal was close on Iran's nuclear programme that would avert military action, sending oil prices tumbling, as he boasted of raising "trillions of dollars" on a Gulf tour.

He made the remarks in Qatar before flying on to the United Arab Emirates for the third and final leg of the tour that began in Saudi Arabia.

Trump has said the tour has resulted in trillions of dollars in deals and is hoping to secure more billion-dollar business agreements in the UAE -- which has sought to become a hub for technology and artificial intelligence.

"We're not going to be making any nuclear dust in Iran," Trump said earlier in Doha. 

"I think we're getting close to maybe doing a deal without having to do this," he said, referring to military action.

Oil prices plunged more than three per cent following his remarks, on rising hopes for a nuclear deal that could see Iranian exports return to the market.

Iran has held four rounds of talks with the Trump administration, which has sought to avert threatened military action by Israel while keeping up its "maximum pressure" campaign.

"You probably read today the story about Iran. It's sort of agreed to the terms," Trump said.

The US president did not specify which remarks he was referring to, but an adviser to Iran's supreme leader Ayatollah Ali Khamenei, Ali Shamkhani, told NBC News that Tehran would give up its stocks of highly enriched uranium as part of a deal in which Washington lifts sanctions.

Trump said 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.

Abu Dhabi 

In Abu Dhabi, Trump was welcomed by children waving UAE and US flags, with women performing a traditional dance that involves moving their heads from side to side to make their hair "dance".

Afterwards, he toured the opulent Sheikh Zayed mosque -- the country's largest, with its giant white columns and high walls adorned with golden moulding -- alongside President Sheikh Mohamed bin Zayed, who greeted him at the airport.

English-language Emirati newspaper The National has reported that the US and UAE are working on announcing an AI and tech partnership during Trump's visit.

The UAE is betting on artificial intelligence to help diversify its oil-reliant economy.

Two days ago, Trump rescinded further controls on AI chips, which were imposed by his predecessor Joe Biden to make it harder for China to access advanced technology.

Trump estimated his "record" tour would raise between $3.5 trillion and $4 trillion.

The president hailed what he said was a record $200 billion deal for Boeing aircraft from flag-carrier Qatar Airways.

Saudi Arabia promised its own $600 billion in investment, including one of the largest-ever purchases of US weapons.