President Donald Trump announced a “largely negotiated” peace deal with Iran aimed at reopening the Strait of Hormuz, sparking hopes for alleviating global energy market pressures and easing U.S. inflation. While a first-phase memorandum of understanding is reportedly part of the deal, significant sticking points remain, including Iran’s management of the strait and its nuclear program, complicating immediate finalization.
President Donald Trump has announced that a significant peace deal with Iran, poised to reopen the crucial Strait of Hormuz, is "largely negotiated" and will be unveiled imminently. This potential breakthrough could bring an end to a conflict that has severely disrupted global energy markets and contributed to the highest U.S. inflation levels in years.
In a recent social media post, Trump confirmed holding extensive calls from the Oval Office with key leaders, including those from Saudi Arabia, the UAE, Qatar, Pakistan, Turkey, Egypt, Jordan, Bahrain, and Israeli Prime Minister Benjamin Netanyahu. These discussions, he stated, were focused on finalizing terms with the Islamic Republic of Iran.
"An Agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries," Trump declared in his post. He indicated that the specific details, including the reopening of the vital Strait of Hormuz—a pivotal chokepoint for global energy trade—would be announced shortly.
Iran's foreign ministry corroborated that the proposed agreement includes a memorandum of understanding as an initial phase, with more comprehensive talks slated to occur within 30 to 60 days.
Despite Trump's optimistic announcement, several significant sticking points appear to persist. Iran's Fars news agency quickly reported that the Strait of Hormuz would remain under Iranian management, characterizing Trump's statement as "incomplete and inconsistent with reality." Furthermore, Trump's public remarks notably omitted any discussion of Iran's nuclear program or its highly enriched uranium stockpiles, issues his administration has repeatedly cited as crucial for resolving the conflict. Iran has consistently pushed to defer nuclear talks until a formal cessation of hostilities is established.
The anticipated announcement also faced an unexpected delay following reports of gunshots near the White House, which prompted a temporary security lockdown.
Earlier, the Financial Times had hinted at a potential deal that would establish a framework for nuclear discussions, ease economic sanctions on Iran, and facilitate the unfreezing of Tehran's overseas assets.
The region has been under a fragile ceasefire since April 8th, intermittently broken by skirmishes as the U.S. and Iran have vied for influence over the Strait of Hormuz. This conflict has led Gulf states to declare the worst global energy crisis in decades, with escalating energy prices in the U.S. fueling inflation and increasing the likelihood of Federal Reserve interest rate hikes.
Intense diplomatic efforts have been underway, with Pakistani and Qatari negotiators holding talks with Iranian counterparts while maintaining regular communication with U.S. envoy Steve Witkoff. However, Iran's top negotiator recently conveyed to a Pakistani counterpart that Tehran would not compromise its "legitimate rights" and expressed deep distrust of the U.S., according to Reuters reports.
Iran's Parliament Speaker Mohammad Baqer Qalibaf confirmed that the nation's armed forces have successfully rebuilt capabilities that were damaged since the onset of the conflict in late February.
Major points of contention include Trump's demands for Iran to surrender its enriched uranium and permanently dismantle any nuclear weapons capacity, alongside dismantling the Natanz, Fordow, and Isfahan nuclear sites—which were targets of U.S. bombings following its involvement in Israel's conflict against Iran last June.
Iran's foreign ministry has described the progress towards an agreement as simultaneously "very far and very close," citing "conflicting stances several times" from the U.S. Trump himself acknowledged Monday that the U.S. had refrained from renewing attacks on Iran this week to facilitate "serious negotiations."
Regional powers, including Saudi Arabia, Qatar, and the UAE, have strongly urged Trump to suspend military actions, fearing Iranian retaliation against the region and further destabilization of global energy markets.
Pakistani Prime Minister Shehbaz Sharif congratulated Trump on a "very useful and productive" call with regional leaders, noting on X that the discussions provided a valuable opportunity to advance ongoing peace efforts. Turkish President Recep Tayyip Erdogan's office also publicly stated that Turkey "stands ready to provide every kind of support during the implementation phase of a potential agreement with Iran."
