Iran says no final decision made on deal that Trump hopes could be signed soon

WASHINGTON/DUBAI — President Donald Trump said Thursday that the United States and Iran could sign a peace agreement as soon as this weekend that would reopen the Strait of Hormuz to shipping, although Iranian officials said no final decision had been reached.

If confirmed, the deal would mark the most significant diplomatic breakthrough yet in efforts to end a three-month war that has killed thousands and driven global energy prices higher.

Iranian media quoted Foreign Ministry spokesperson Esmaeil Baghaei as saying that large portions of the draft text under negotiation have been finalized, but that Tehran would not compromise on what it described as its “red lines.”

“We have not reached a final conclusion on this matter,” Baghaei said. “This is a very important issue that is currently being reviewed by the relevant decision-making bodies.”

In Washington, Trump told reporters at the White House that a settlement had effectively been reached.

“We just made a great settlement of the war with Iran,” he said. “The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe.”

He added that Vice President JD Vance could sign the agreement on behalf of the United States. When asked whether Iran’s Supreme Leader had approved the deal, Trump said, “I understand the answer is yes.”

Trump’s remarks followed his decision to call off planned military strikes on Iran, citing progress in negotiations. The comments helped lift U.S. stock markets while oil prices declined.

Since mid-March, Trump has repeatedly said a deal to end the war was near. However, both sides have continued to exchange strikes in recent days, straining a fragile ceasefire announced in April.

“It’s a very strong memorandum of understanding that is a little conceptual,” Trump said.

He has insisted that any agreement must permanently block Iran from developing nuclear weapons, an accusation Tehran denies. Iran, meanwhile, has demanded the lifting of sanctions, the release of billions of dollars in frozen assets, and recognition of its authority over the Strait of Hormuz.

“The big thing is there will be no nuclear weapons in Iran. That means not developed and not purchased,” Trump said during a campaign event held by telephone.

TIT-FOR-TAT STRIKES

The conflict has killed thousands, mainly in Iran and Lebanon, and disrupted global energy markets since the United States and Israel launched airstrikes on Iran on February 28.

Despite a ceasefire that took effect in early April, hostilities have intensified in recent days. After a U.S. Apache helicopter was downed, Trump ordered additional strikes near the Strait of Hormuz over a two-day period.

Iran responded with missile and drone attacks on U.S. bases across the region.

Bahrain’s Interior Ministry said Thursday that an 11-year-old girl suffered minor injuries and several homes were damaged after debris from intercepted Iranian drones fell in residential areas.

Earlier in the day, Trump said the United States would strike Iran “very hard tonight” and suggested targeting the country’s key oil infrastructure, including Kharg Island, which handles the majority of Iran’s oil exports.

Iranian state media later reported that its forces prevented a tanker from transiting the Strait of Hormuz without coordination. The waterway normally carries about one-fifth of global oil shipments but has been largely disrupted since the war began.

DOMESTIC PRESSURES

The conflict has created political challenges for the White House, with opinion polls showing declining approval ratings amid public concern over rising fuel prices.

Some Republicans have also warned that growing public opposition to the war could affect their prospects in the upcoming midterm elections.

At the same time, Trump faces pressure from Iran hawks within his party who insist that any agreement must permanently block Tehran’s path to nuclear weapons.

Trump said on social media that the emerging deal had been endorsed by several regional powers, including Israel, Saudi Arabia, Qatar and the United Arab Emirates.

However, Israeli Prime Minister Benjamin Netanyahu’s office later said Israel was not a party to the memorandum of understanding with Iran.

In a separate statement, Netanyahu expressed appreciation for Trump’s efforts but emphasized Israel’s demand that any agreement include the removal of enriched material, dismantling of enrichment infrastructure, limits on missile production, and an end to support for regional proxy groups.

Tehran has also demanded an end to Israeli military operations in Lebanon, where clashes between Israel and Iran-backed Hezbollah fighters continue alongside the broader conflict. -Reporting by Reuters bureaus; Writing by Costas Pitas and Andy Sullivan; Editing by Cynthia Osterman and Don Durfee/Reuters