Trump Cancels Strikes on Iran, Announces Imminent Deal to End Three-Month War

The United States and Iran appear to be on the verge of a major diplomatic de-escalation. After three months of direct military conflict that began in late February 2026, President Donald Trump abruptly canceled a scheduled wave of airstrikes against Iranian infrastructure on Thursday evening. In their place, the White House announced that a "memorandum of understanding" (MOU) is imminent, providing a potential off-ramp to a war that has severely disrupted global energy markets.[2][3]

The sudden pivot from military confrontation to high-stakes diplomacy follows weeks of intense back-channel negotiations. Because Washington and Tehran do not maintain formal diplomatic relations, the talks have been mediated by officials from Qatar, Pakistan, and Turkey. Trump told reporters in the Oval Office that the Iranian leadership had "taken a pounding" from U.S. bombardments and was now ready to make a deal.[2][4][6]

The president indicated that the agreement is approved "in concept and great detail" by all involved parties, though a formal signing date has not yet been set. The announcement marks a sharp reversal from earlier in the week, when Trump had threatened to launch a "bigger, more powerful" attack and seize control of Iran's oil markets if Tehran did not capitulate.[5][6]

The core mechanism of the proposed MOU centers on a 60-day ceasefire extension. This pause in hostilities is designed to halt the cycle of U.S. airstrikes and Iranian retaliatory drone attacks that have characterized the conflict. The ceasefire would also reportedly extend to Lebanon, where Israeli forces and Iranian-backed Hezbollah militants have been engaged in heavy fighting.[2][3][4][5]

A critical component of the deal is the immediate reopening of the Strait of Hormuz. Roughly 20% of the world's crude oil typically flows through this narrow maritime chokepoint. Since the war began, the strait has been effectively blockaded by Iranian threats and military action, heavily constraining global energy supplies and driving up prices. Under the MOU, commercial shipping would resume without tolls or harassment.[3][4][5]

In exchange for halting hostilities and reopening the strait, Iran is slated to receive substantial economic relief. Iranian state media, including the Mehr News Agency, reported that the U.S. has agreed to unfreeze $24 billion in Iranian financial assets held abroad. According to these reports, half of that amount would be released upfront before further talks commence, allowing Tehran to bypass crippling economic sanctions.[3][5]

However, the narrative surrounding the financial concessions is highly contested. Trump recently took to social media to accuse Tehran of leaking false terms to the press, specifically disputing the timeline and conditionality of the asset release. U.S. officials maintain that the deal is strictly "performance-based," meaning that no frozen assets will be released until Iran demonstrably fulfills its obligations under the agreement.[5]

The most complex element of the emerging deal remains Iran's nuclear program. The draft MOU does not permanently dismantle Iran's nuclear capabilities immediately; rather, it establishes a 60-day negotiation period to finalize a comprehensive nuclear accord. The text reportedly includes a framework for addressing Iran's enriched uranium stockpile, though any concrete action would depend on a second, more detailed treaty.[4][5]

Trump has publicly billed the emerging framework as "very strong," asserting it will permanently block Iran from developing a nuclear weapon. Yet, Iranian officials have emphasized that their ballistic missile program and their support for regional proxy networks are not on the table for negotiation. This limitation highlights the narrow scope of the initial ceasefire agreement and the challenges that lie ahead in broader negotiations.[2][5]

The geopolitical stakes of securing an off-ramp are immense for both nations. For the Trump administration, the conflict has driven up global inflation, strained the U.S. economy, and created political headwinds. Analysts suggest that Trump's recent threats to escalate strikes—including targeting Iran's vital Kharg Island oil terminal—were partly aimed at demonstrating strength to his political base while simultaneously pressuring Tehran to finalize the deal.[6]

For Iran, the war has brought devastating strikes on its military and civilian infrastructure. While the Iranian Foreign Ministry insists that "no final conclusion" has been reached regarding the MOU, the economic pressure to secure sanctions relief is profound. The country's supreme leader, Ayatollah Mojtaba Khamenei, who has not been seen in public since the war's early days, is reportedly reviewing the terms.[2][3][5]

U.S. allies in the region are watching the developments with cautious optimism. Israeli Prime Minister Benjamin Netanyahu stated on Friday that he and Trump are in "complete agreement" that Iran must be denied a nuclear weapon. Meanwhile, Gulf states like Saudi Arabia and the United Arab Emirates, which have been caught in the crossfire of Iranian retaliatory drone strikes, are eager for a resolution that protects their own oil infrastructure.[3][5]

Despite the optimism emanating from Washington, the path to a lasting peace remains fraught with uncertainty. The immediate test will be the formal signing of the MOU, which Trump suggested could happen over the weekend in Europe, potentially attended by Vice President JD Vance. If the deal holds, it will mark a significant diplomatic breakthrough; if it collapses, the U.S. has warned it is prepared to resume "very hard" military strikes.[2][4][5]