US-Iran war: Trump claims Tehran has approved peace deal; Hormuz would be reopen soon
He said at present, there is a “very strong” and “detailed” MoU underpinning the proposed agreement.
by Zee Media Bureau · Zee NewsUS-Iran War: US President Donald Trump said on Thursday that he believes Iran’s top leadership has approved a draft agreement with Washington and talks move closer to completion. Speaking from the Oval Office, he said that the final decision from Tehran appears to be in place.
“I understand the answer is yes,” he said when asked whether Iran’s Supreme Leader Mojtaba Khamenei had cleared the deal (if any) that is presently being finalised between the two sides.
He added that once the agreement is signed, the United States would immediately remove naval blockade affecting Iranian ports. Trump also said the agreement would have an immediate impact on international oil markets. “And you’ll have oil prices dropping like a rock,” he told journalists.
Deal will unlock Strait of Hormuz
Trump further said that the Strait of Hormuz would reopen once both sides sign the agreement. The waterway has been under restrictions because of the ongoing tensions between Washington and Tehran, and it is affecting shipping and energy movement.
According to the US president, the deal could be signed as early as this weekend in Europe. He said he would not be present at the ceremony, but US Vice President JD Vance would represent Washington.
He also described the draft agreement as being in its final stage. “It should be done pretty quickly,” he said, adding that Iran also appears willing to move forward with the arrangement. “They want it every bit as much as everybody else wants it,” Trump said.
He said at present, there is a “very strong” and “detailed” memorandum of understanding (MoU) underpinning the proposed agreement. According to him, the document has the backing of several countries that have “great influence” over Iran.
He described the deal as beneficial for both the United States and the wider Middle East, adding that it would also help Iran rebuild its economy.
Trump also said that once the agreement is signed, the possibility of a US military operation against Iran’s Kharg Island would no longer be under consideration. While he did not provide a specific date for signing the deal, he said the process should conclude soon.
No nuclear weapons for Iran under deal, says Trump
Addressing the nuclear issue, he said the agreement would prevent Iran from developing nuclear weapons. “They will not have a nuclear weapon. They have agreed to that,” he said.
He added that Iran would neither pursue nor acquire nuclear weapons under any future deal with the United States. Iranian leaders have consistently rejected earlier US claims that Tehran was seeking nuclear arms.
Trump promises strict Iran conditions, says Netanyahu
The developments also prompted a response from Israel. Prime Minister Benjamin Netanyahu’s office said Trump had spoken with him about the emerging MoU that could open the way for formal negotiations with Iran.
In a statement on X, the office of the prime minister said the Israeli leader welcomed Trump’s commitment that any final agreement would include the removal of Iran’s enriched nuclear material, the dismantling of enrichment infrastructure, limits on missile production and an end to Iranian support for armed groups operating across the region.
The statement added that Israel is not a party to the MoU, which is presently under discussion.
Iran says it will not cross its ‘red lines’
Tehran has meanwhile backed parts of the proposed agreement but said some of its conditions are non-negotiable.
Iranian Foreign Ministry spokesman Esmaeil Baghaei said Qatar and Pakistan continue to play an active role in mediation efforts between the two sides. He also said recent US actions had complicated the diplomatic process.
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According to Iran’s semi-official Tasnim news agency, he said Iran had accepted much of the draft text under negotiation but accused Washington of repeatedly changing its position during negotiations.
He said Iran has not so far taken a final decision on the proposed agreement. The government, he said, would make a formal announcement once the authorities concerned complete their review of the draft text and reach a decision on its final details, according to Iran's state-run news agency IRNA.
Qatar confirms diplomatic contact
Talks on the agreement also included Qatar. The office of the Qatari emir said that he had spoken with Trump and was informed that understandings reached had approval from all sides involved in the negotiations.
The statement said both leaders discussed broader strategic relations and regional developments, including ongoing diplomatic efforts aimed at easing tensions.
Doha also said it supports efforts that help strengthen regional stability and cooperation among countries in the Middle East.
Behind-the-scenes negotiations across multiple capitals
Sources said negotiators have spent the past few weeks refining the draft agreement. What started as a proposal has gradually been turned into a detailed document after several rounds of talks.
The process has involved coordination among several regional players, including Qatar, Saudi Arabia, Egypt, Türkiye and Pakistan. Mediators have played an important role in keeping communication open between Washington and Tehran.
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Officials involved in the process say that Iranian representatives, including a deputy foreign minister, were recently in Doha for indirect talks with American negotiators.
Despite this progress, uncertainty still surrounds the final approval from Iran’s leadership, with no public confirmation from Tehran so far.
World Bank warns of economic fallout
The ongoing tensions in West Asia and disruption in energy routes have been flagged as a risk for economic growth across the globe. The World Bank has warned that the military confrontation could slow economic growth worldwide to its weakest pace since the COVID-19 pandemic.
In its latest Global Economic Prospects report, the institution lowered its growth forecast for 2026 to 2.5 percent from 2.9 percent, citing rising energy costs, inflation and higher borrowing expenses.
The report said disruptions to oil and gas shipments through the Strait of Hormuz could become a major source of volatility for energy prices and financial markets worldwide. It also warned that further instability could push inflation higher and slow economic activity across both developed and developing economies.
Well above last year's average, Brent crude prices are projected to average $94 per barrel this year. Food and fertiliser costs are also expected to rise as supply chains continue to face disruptions.
World Bank President Ajay Banga said developing countries are most exposed to the impact.
“Developing countries have faced a series of challenges over the last decade,” he said, adding that governments must balance immediate stability with long-term growth.
The World Bank has set aside up to $60 billion in support for affected developing nations, with the option to increase assistance if conditions worsen further.
As negotiations continue and markets respond to developments in Washington and Tehran, the next few days could determine whether the draft agreement reaches the signing stage.