Trump Cancels Iran Strikes, Claims Peace Deal to Reopen Strait of Hormuz is Imminent

President Donald Trump abruptly canceled a wave of scheduled military strikes against Iran on Thursday evening, declaring that the two nations are on the verge of signing a peace agreement to end their three-month war. Speaking from the Oval Office, Trump claimed that the foundational concepts of the deal had been approved by the "highest level of Iranian leadership" and that a formal signing could take place in Europe as early as this weekend. The sudden reversal came just hours after the president publicly threatened to launch a massive bombardment against Iranian infrastructure, underscoring the volatile nature of the ongoing negotiations.[2][5][7]

The announcement marks a potential breakthrough in a conflict that has severely disrupted global energy markets and heightened geopolitical anxieties. For months, the vital Strait of Hormuz—a narrow waterway through which approximately 20% of the world's oil flows—has been effectively closed due to a U.S. naval blockade and Iranian military actions. Trump stated that the strait would reopen immediately upon the deal's signing, a move that would relieve mounting inflationary pressures on the global economy. Financial markets reacted swiftly to the news, with U.S. stocks rallying and global oil prices experiencing a sharp decline in anticipation of restored supply lines.[2][3][5]

However, officials in Tehran quickly tempered expectations, pushing back against the narrative that a deal is already secured. Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated that while large portions of the negotiating text have been finalized, "no final conclusion" has been reached by the country's decision-making bodies. Baghaei accused the United States of repeatedly shifting its positions during the talks and emphasized that any final accord must respect Iran's established red lines. These demands reportedly include the comprehensive lifting of international sanctions, the unfreezing of billions of dollars in assets, and formal recognition of Iranian sovereignty over its territorial waters.[3][4]

At the center of the proposed memorandum of understanding is the future of Iran's nuclear program. Trump told reporters that Tehran has committed to permanently abandoning any effort to obtain a nuclear weapon, stating unequivocally, "They will not purchase, develop in any way, shape or form a nuclear weapon." When pressed on whether the agreement requires Iran to surrender its existing stockpile of enriched uranium, Trump remarked that the issue had been resolved "conceptually." He noted that much of the material is currently "buried under a mountain" following previous U.S. strikes, leaving the exact mechanisms for physical disarmament and international verification ambiguous.[1][2][3][4]

Regional allies, who have borne the brunt of the conflict's spillover effects, are closely monitoring the diplomatic developments. Following a phone call with Trump, Israeli Prime Minister Benjamin Netanyahu's office clarified that Israel is not a party to the emerging memorandum of understanding. Nevertheless, Netanyahu expressed appreciation for Trump's assurances that the final agreement would mandate the dismantling of Iran's enrichment infrastructure, limit its ballistic missile production, and halt its financial and military support for proxy militant groups operating across the Middle East. The Israeli government maintains that any deal must include strict, verifiable enforcement mechanisms to ensure regional security.[3][4]

The sudden pivot to diplomacy follows days of intense military escalation that threatened to spiral into a broader regional war. Earlier on Thursday, Trump had warned that the U.S. would hit Iran "very hard," floating the possibility of seizing Kharg Island, Iran's primary oil export hub. This aggressive rhetoric coincided with a U.S. strike on an oil tanker in the Gulf of Oman, which resulted in the deaths of three Indian crew members, and Iranian retaliatory drone attacks targeting U.S. military installations in Kuwait and Bahrain. The rapid succession of strikes and counter-strikes highlighted the fragility of the situation prior to the peace announcement.[2][5]

Domestically, the whiplash between threats of massive bombardment and declarations of imminent peace has drawn sharp criticism from political opponents. Senate Minority Leader Chuck Schumer condemned the administration's handling of the crisis, calling the three-month war a "fiasco." Schumer specifically targeted Trump's earlier threat to seize Kharg Island, warning that such an operation would have risked putting American boots on the ground and further entangling the U.S. military in a protracted Middle Eastern conflict. Critics argue that the administration's erratic messaging undermines U.S. credibility and complicates the efforts of diplomats working to finalize the complex agreement.[1][7]

If the diplomatic track holds, Vice President JD Vance and top U.S. negotiators are expected to travel to Europe to finalize the paperwork and participate in the signing ceremony. Until the signatures are officially secured, however, the U.S. naval blockade remains in full effect, and military forces on both sides remain on high alert. The coming days will be critical in determining whether the conceptual agreements can be translated into a binding treaty, leaving the region in a precarious state of limbo between a historic diplomatic settlement and a return to open warfare.[2][4][5]