President Donald Trump announced that a deal to end the conflict with Iran could be signed as early as this weekend, a significant diplomatic development that, if realized, would mark a major breakthrough in the three-month-old war. The potential agreement comes amid ongoing tensions and skirmishes, particularly around the strategically vital Strait of Hormuz.
Trump expressed optimism, stating at the White House that a resolution was nearing completion. He indicated that the Strait of Hormuz would be officially reopened upon the signing of the deal, which he suggested could occur over the weekend in Europe. Vice President JD Vance is expected to attend the signing ceremony. Trump also conveyed his understanding that Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, had approved the agreement.
Despite Trump's assertions, Iranian officials stated that no final decision had been reached. Esmaeil Baghaei, a spokesperson for the Iranian Foreign Ministry, reported that while substantial parts of the agreement have been finalized, Iran would not compromise on its core principles. He emphasized that the matter is under review by the relevant decision-making bodies.
Market reaction to the news was positive, with Asian stocks joining a global rally on Friday as hopes for peace increased. Oil prices saw a decline, reaching two-month lows. However, tensions persisted around the Strait of Hormuz. U.S. forces reportedly shot down two Iranian drones attempting to target commercial vessels, and Iranian state media indicated that the country's military had intercepted a tanker. These incidents follow a week of exchanges between the two nations, straining a previously announced ceasefire.
The potential peace deal is understood to include provisions aimed at preventing Iran from developing nuclear weapons, a long-standing concern for the U.S. Iran, in turn, is reportedly seeking the lifting of international sanctions, the release of frozen assets, and recognition of its control over the Strait of Hormuz. Trump reiterated his administration's commitment to ensuring no nuclear weapons are developed or acquired by Iran.
The conflict has presented political challenges for the White House, with concerns over rising gasoline prices impacting Trump's approval ratings. While Trump has sought to satisfy hardliners within his Republican Party by ensuring Iran cannot pursue nuclear capabilities, the broader regional reaction remains a critical factor. Trump claimed that countries including Israel, Saudi Arabia, Qatar, and the United Arab Emirates had approved the agreement. However, Prime Minister Benjamin Netanyahu's office clarified that Israel is not a party to the memorandum of understanding, though Netanyahu appreciated Trump's commitment to a deal that addresses Iran's nuclear and missile programs and its regional activities.
