Iran says no final decision on deal; Trump hopes to sign soon
"We have not reached a final conclusion on this matter," he said.
A possible opening in one of the world’s most volatile flashpoints emerged on Friday, with US President Donald Trump saying Washington and Tehran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz to shipping. Iran, however, quickly cautioned that no final decision had yet been made.
If it goes ahead, the agreement would mark the biggest diplomatic advance so far toward ending the three-month-old war, a conflict that has killed thousands and driven global energy prices sharply higher.
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Iranian media cited Foreign Ministry Spokesperson Esmaeil Baghaei as saying that substantial portions of the draft text have been completed, though Tehran would not yield on what it considers its red lines.
“We have not reached a final conclusion on this matter,” he said.
At the White House, Mr Trump struck a triumphant tone, telling reporters: “We just made a great settlement of the war with Iran.”
“The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” Mr Trump said, adding Vice President JD Vance could sign for the United States.
Asked whether Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal, Mr Trump replied: “I understand the answer is yes.”
Watch: US President Donald Trump announces a “great settlement” with Iran
Mr Trump’s announcement followed his decision to call off planned military strikes on Iran, saying negotiations had made progress.
US stocks climbed and oil prices dropped after the news broke.
Since mid-March, Mr Trump has repeatedly said a deal with Iran to end the war was within reach.
Even so, the two sides have exchanged strikes this week, putting pressure on a ceasefire first announced in April.
“It’s a very strong memorandum of understanding that is a little conceptual,” Mr Trump told reporters.
Mr Trump has repeatedly insisted that any peace agreement must guarantee Iran cannot build a nuclear weapon. Iran denies it is trying to do so.
Iran has blocked traffic through the Strait of Hormuz
Among Iran’s demands are the removal of international sanctions, the release of billions of dollars in frozen assets and recognition of its control of the Strait of Hormuz.
“We have a deal that Iran will never have a nuclear weapon, which was the whole purpose of what we had to go through to get this. So it was a very big thing,” Mr Trump said.
Tit-for-tat strikes
The war has left thousands dead, mostly in Iran and Lebanon, and has rattled the global economy by lifting energy prices since the US and Israel launched airstrikes on Iran on 28 February.
In the past several days, the fighting has escalated further despite a fragile ceasefire that came into effect in early April.
After a US Apache helicopter was shot down, Mr Trump this week ordered fresh strikes around the Strait of Hormuz over two days.
At the same time, Iran fired missiles and launched drone attacks at US bases across the region.
Bahrain’s interior ministry said an 11-year-old girl suffered minor injuries and homes were damaged after debris fell from Iranian drones that were intercepted and destroyed.
Earlier, Mr Trump had said the United States would hit Iran “very hard tonight” and ultimately wanted to take Iran’s oil hub on Kharg Island.
The island handles 90% of Iran’s oil exports, and control of it would give the United States the power to severely disrupt Iran’s energy trade, sharply increasing pressure on Tehran’s economy.
Domestic pressures
For the White House, the conflict has turned into a political strain, with polls showing Mr Trump’s approval ratings falling as voters grow angrier over high gasoline prices.
Some Republicans have openly warned that the war’s unpopularity could jeopardise their party’s hold on Congress in November’s midterm elections.
At the same time, Mr Trump must also reassure critics inside his own Republican Party that any agreement definitively blocks Tehran’s route to developing a nuclear weapon.
Opposition from Iran hawks helped sink an earlier push to secure a deal to reopen the Strait.
The reaction across the Middle East is also likely to be decisive.
US stocks rose and oil prices fell on the news of a potential agreement
On social media, Mr Trump said the agreement had the backing of other countries in the region, including Israel, Saudi Arabia, Qatar and the United Arab Emirates.
A statement from Israeli Prime Minister Benjamin Netanyahu’s office, issued after the Israeli leader spoke with Mr Trump, said Israel was not a party to the memorandum of understanding with Iran.
According to the read out, Mr Netanyahu thanked Mr Trump for his commitment to pursuing a deal that would remove enriched material, dismantle enrichment infrastructure, limit missile production and end support for regional proxies.
Tehran has also been seeking an end to Israeli attacks in Lebanon, where fighting has continued in a parallel war between Israel and the Iran-backed Hezbollah militants.
Mr Trump told reporters he would also soon speak with Turkey’s President Tayyip Erdogan.
