US Cancels Strikes on Iran as Trump Announces 'Great Settlement' to End War

US President Donald Trump abruptly canceled planned military strikes against Iran on Thursday, announcing that the two nations had reached a "great settlement" to end their ongoing war.[2][4]

The announcement, delivered from the Oval Office, marked a dramatic reversal just hours after Trump had threatened to launch "very hard" attacks and seize control of Iran's critical oil infrastructure. Instead, the president claimed that a comprehensive peace agreement had been approved at the highest levels of Iranian leadership, including Supreme Leader Ayatollah Mojtaba Khamenei.[5][6][8]

If finalized, the memorandum of understanding would represent a historic diplomatic breakthrough, halting a conflict that began with US and Israeli strikes on February 28. The proposed framework centers on reopening the Strait of Hormuz—a vital global shipping choke point—in exchange for the United States lifting its naval blockade on Iranian ports.[2][4][7][8]

However, the reality on the ground remains deeply contested. While the White House projects absolute certainty, Iranian officials have pushed back against the narrative that a deal is fully complete. Iran's Foreign Ministry spokesperson Esmaeil Baqaei stated that Tehran has "not reached a final conclusion," while semi-official Iranian news agencies urged the public to dismiss Trump's claims until a formal announcement is made in Tehran.[2][4][7]

Despite the public denials, diplomatic backchannels suggest genuine momentum. Qatari mediators have reportedly helped narrow key gaps between Washington and Tehran in recent days. The core of the emerging compromise appears to be a sequenced de-escalation: an immediate extension of the fragile April ceasefire, followed by a 60-day window to negotiate the specifics of Iran's nuclear program.[5][7]

The nuclear question remains the most complex pillar of the settlement. Trump asserted that the agreement ensures Iran "will never have a nuclear weapon," though he conceded the current draft addresses the issue "conceptually." The president argued that recent US military operations had already neutralized much of the threat, claiming that Iranian nuclear material is now "buried under a mountain" following targeted bunker-buster strikes.[5][8]

The sudden diplomatic pivot averted what would have been a massive regional escalation. Earlier on Thursday, Trump had publicly weighed seizing Kharg Island, the nerve center of Iran's oil export economy located in the northern Persian Gulf. Taking control of the island would have effectively handed the US control over Iran's oil and gas markets, a move Trump likened to US actions in Venezuela.[2][4][6]

The threat against Kharg Island followed a breakdown in the temporary ceasefire. In the days leading up to the announcement, US Central Command struck an oil tanker in the Gulf of Oman and targeted Iranian air defense and water-storage facilities. Iran retaliated by launching drones and missiles at US military installations in Kuwait and Bahrain.[2][3][6]

The proposed settlement attempts to untangle this immediate military tit-for-tat while addressing broader geopolitical concerns. According to the White House, the deal has been reviewed and conceptually approved by a coalition of regional partners, including Saudi Arabia, the United Arab Emirates, Qatar, and Turkey.[2][5]

Israel, a central player in the broader conflict, is notably not a direct party to the emerging memorandum of understanding. However, Israeli Prime Minister Benjamin Netanyahu praised the diplomatic effort after a phone call with Trump, emphasizing that any final agreement must include the dismantling of uranium enrichment infrastructure and a cessation of Iranian support for regional proxy groups.[3][5]

The mechanics of implementing the deal present significant logistical hurdles. The agreement reportedly includes a timeline for demining the Strait of Hormuz, a process during which the US naval blockade will remain strictly enforced. Only after the waterway is secured and the documents are formally signed will the blockade be lifted, allowing Iranian maritime commerce to resume.[2][4][8]

Financial markets reacted with immediate relief to the prospect of a stabilized Persian Gulf. The S&P 500 jumped 1.3%, while the Dow Jones Industrial Average and Nasdaq composite posted similar gains, driven by the sudden evaporation of a major threat to global energy supplies. The war had previously pushed global inflation to a three-year high as oil prices spiked.[4][5]

The timeline for finalizing the historic accord remains fluid. Trump indicated that a formal signing ceremony could take place "maybe over the weekend in Europe," with Vice President JD Vance and special envoys Steve Witkoff and Jared Kushner slated to attend on behalf of the United States.[5][8]

Yet, seasoned diplomats warn that the agreement still faces a precarious path. With deep mutual suspicion, ongoing proxy conflicts in Lebanon, and the sheer complexity of verifying nuclear compliance, the transition from a "conceptual" memorandum to a durable peace treaty is fraught with potential spoilers. For now, the region waits to see if the canceled strikes mark the true end of the war, or merely a brief pause in a volatile standoff.[3][4][7]