US President Donald Trump said on Friday he did not think that Iran was ready make the "right deal," and that Washington was observing "what happens" in the war.

"It just means that we're seeing what happens," Trump told reporters when asked if US military options with Iran were limited.

"We have total control of that entire region having to do with the Strait of Hormuz, and that means well into it, the land areas. So, they would love to make a deal, but they're not ready to make the right deal, in my opinion," Trump added.