Trump Says Iran Peace Agreement Is Close, While Tehran Awaits Final Decision

U.S. President Donald Trump announced on Thursday that Washington and Tehran had made significant progress toward a peace agreement, suggesting that a final deal could be signed in Europe within days, potentially as soon as this weekend.

The comments fueled optimism across global financial markets, although Iranian officials stressed that no final agreement has yet been reached.

Trump Claims Major Breakthrough in Negotiations

Speaking to reporters, Trump stated that the United States and Iran had agreed on measures to reopen the Strait of Hormuz and end restrictions affecting Iranian ports.

He described the development as a major step toward ending the conflict between the two countries.

According to Trump, the remaining process primarily involves finalizing documentation before a formal signing ceremony can take place.

Later, during a virtual rally, Trump went even further, declaring that the war with Iran had effectively ended and claiming that Tehran had agreed not to pursue nuclear weapons.

Iran Confirms Progress but Stops Short of Approval

Iranian officials acknowledged that negotiations had advanced significantly, with several key sections of a potential agreement reportedly nearing completion.

However, Tehran pushed back against reports suggesting that a deal had already been finalized.

Iran’s Foreign Ministry stated that discussions remain ongoing and emphasized that any agreement would only be announced after it fully serves the interests of the Iranian people.

Officials also criticized what they described as inconsistent messages coming from Washington, arguing that contradictory statements have complicated the negotiation process.

Strait of Hormuz Remains a Key Issue

One of the main points of discussion continues to be the status of the Strait of Hormuz, one of the world’s most important energy shipping routes.

While Trump indicated that the waterway would soon reopen under the proposed agreement, Iranian officials maintained that restrictions remain in place.

Separate reports also suggested that tensions had not fully subsided, with Iran allegedly launching drones toward several vessels operating near the strait late Thursday.

The conflicting narratives highlighted the fragile nature of the ongoing negotiations.

Trump Calls Off Planned Military Action

The latest diplomatic progress came after Trump reportedly canceled planned military strikes against Iran that had been scheduled for Thursday evening.

The U.S. president suggested that discussions had reached a stage where all parties had broadly approved the framework of a peace agreement.

His decision to halt military action was viewed by investors as a sign that diplomacy may be replacing confrontation in the region.

Markets React Strongly to Peace Hopes

Financial markets responded positively to Trump’s remarks.

Major U.S. stock indexes surged as investors welcomed the possibility of reduced geopolitical tensions in the Middle East.

At the same time, oil prices fell sharply as traders removed part of the geopolitical risk premium that had supported energy markets during the conflict.

The market reaction demonstrated the importance of developments in the region for global investors.

Negotiations Continue Despite Ongoing Tensions

Reports indicated that U.S. and Iranian officials continued discussions throughout the night, focusing on several unresolved issues.

Among the topics under negotiation is a potential mechanism to unfreeze Iranian financial assets, a move viewed as an important component of any broader agreement.

Despite the progress, uncertainty remains elevated.

The United States and Iran exchanged military strikes for a second consecutive day earlier this week, and Trump had previously warned that additional action could be taken if Tehran failed to move forward with negotiations.

Regional tensions have also been heightened by recent clashes involving Iran and Israel, as well as hostilities connected to Hezbollah in Lebanon.

Inflation and Energy Markets Remain in Focus

Although oil prices have retreated from recent highs, they remain significantly above pre-conflict levels.

Elevated energy prices continue to raise concerns about inflationary pressures that could influence monetary policy decisions around the world.

Following recent U.S. inflation data showing consumer prices rising at their fastest pace in years, Trump argued that energy flows through the Strait of Hormuz had remained stronger than many expected, helping support global supply.

Investors will now closely monitor developments over the coming days as negotiations move toward what could become one of the most significant geopolitical agreements of the year.