Hopes for a major breakthrough in the Iran conflict rose on Thursday after President Donald Trump said the United States and Iran could sign a peace agreement as soon as this weekend.
According to Trump, the proposed deal would reopen the Strait of Hormuz, a critical energy route that normally handles about 20% of global oil shipments, and could mark the most significant diplomatic development since the conflict began earlier this year.
“We just made a great settlement of the war with Iran,” Trump told reporters, adding that the agreement could be signed “very soon, maybe over the weekend.”
Markets welcomed the comments. US stocks moved higher while oil prices fell as investors bet that a deal could reduce geopolitical risks and ease concerns about global energy supplies.
However, Iran quickly pushed back on suggestions that an agreement was finalized.
Iranian Foreign Ministry spokesperson Esmaeil Baghaei said large portions of the proposed text had been agreed upon, but stressed that Tehran’s decision-making bodies were still reviewing the proposal.
“We have not reached a final conclusion on this matter,” Baghaei said, adding that Iran would not compromise on its core demands.
Several key issues reportedly remain under discussion, including:
- The future status of the Strait of Hormuz
- Sanctions relief
- Access to frozen Iranian assets
- Nuclear-related restrictions
Trump has repeatedly stated that any agreement must guarantee that Iran cannot develop or acquire nuclear weapons. Iran continues to deny that it is pursuing a nuclear weapons program.
The latest developments come after months of conflict that have disrupted energy markets and pushed oil prices sharply higher. Despite a ceasefire announced earlier this year, fighting has continued intermittently, with both sides accusing each other of violations.
The prospect of a deal is also important for financial markets. A reopening of the Strait of Hormuz could help stabilize oil prices, reduce inflation pressures, and ease concerns about global supply chains.
Still, investors appear cautious.
The gap between Trump’s optimism and Iran’s more measured response suggests that negotiations may be entering their final stage, but significant hurdles remain before any formal agreement is signed.
For now, markets are watching one question closely: Will the latest diplomatic push finally produce a deal, or will another round of uncertainty follow?
Related: Trump Says US-Iran Peace Deal Is ‘Largely Negotiated’: What to know
