Trump Cancels Iran Strikes, Claims 'Great Settlement' Reached as Tehran Pushes Back

President Donald Trump abruptly canceled a wave of planned military strikes against Iran on Thursday evening, announcing that the United States and Tehran had reached a "great settlement" to end their ongoing military conflict. The reversal came just hours after Trump had threatened to hit the Islamic Republic "very hard" and suggested the U.S. might seize vital Iranian oil infrastructure.[2][3][6]

Speaking from the Oval Office and posting on his Truth Social platform, Trump claimed that the final points of a peace agreement had been approved by the highest levels of Iranian leadership. He indicated that a signing ceremony could take place "maybe over the weekend in Europe," with Vice President JD Vance expected to attend on behalf of the United States.[2][3][8]

The immediate prospect of peace sent shockwaves through global markets, which have been battered by the effective closure of the Strait of Hormuz. Brent crude oil, the international benchmark, plummeted 4.5% to $86.31 a barrel on the news, while U.S. stocks surged, with the Dow Jones Industrial Average jumping more than 800 points as investors priced in the reopening of the critical energy chokepoint.[1][5]

However, Iranian officials quickly pushed back against the White House's definitive timeline. Foreign Ministry spokesperson Esmaeil Baghaei stated that while large parts of the negotiating text have been finalized, Tehran has not reached a "final conclusion" and will not compromise on its established red lines. The proposed agreement is reportedly still being reviewed by Iran's relevant decision-making bodies.[4][8]

The diplomatic whiplash follows days of intense military escalation. Earlier in the week, Iran shot down a U.S. Apache helicopter over the Strait of Hormuz, prompting two consecutive nights of U.S. Central Command airstrikes targeting Iranian radar, communication infrastructure, and air defense systems along the southern coastline.[3][8]

Amid the crossfire, the U.S. military also executed a secret operation to escort ships carrying more than 100 million barrels of oil out of the Strait, a move Trump credited with preventing global oil prices from spiking to catastrophic levels during the blockade.[1]

The core of the emerging memorandum of understanding reportedly involves Iran committing to never acquire a nuclear weapon and the U.S. lifting its naval blockade of Iranian ports. Trump stated that the Strait of Hormuz would officially reopen "as soon as we sign" the documents.[2][4]

Regional allies are watching the developments closely. Israeli Prime Minister Benjamin Netanyahu held a phone call with Trump on Thursday night. Netanyahu's office subsequently released a statement clarifying that while Israel is not a party to the memorandum of understanding, it appreciates Trump's commitment to ensuring the final agreement includes the dismantling of Iran's enrichment infrastructure and limits on missile production.[2][4]

For now, the U.S. naval blockade remains in full effect. The coming days will test whether Trump's strategy of applying maximum military pressure while keeping a diplomatic off-ramp open has successfully forced a breakthrough, or if the premature announcement will cause the fragile negotiations to collapse.[3][6]