U.S. President Donald Trump said that Iran will be bombed "at a much higher level" if it doesn't agree to a peace deal.

The president said the war "will be at an end" if Iran agrees to the proposals, meaning the Strait of Hormuz "will be open to all."

His post on Truth Social came after markets reacted to an Axios report that the U.S. and Iran were close to an agreement that would bring their two-month war to an end.

The outlet reported on Wednesday that Washington expects responses from Tehran on several key points to form the basis of a one-page memo within the next 48 hours.

Oil prices fell sharply in response, while U.S.…