Since mid-March, Trump has repeatedly claimed a deal with Iran to end the war was close
President Donald Trump could soon appear on a bank note — breaking longheld tradition against putting living presidents on US money. Photo: AFP/ File
Hopes grew on Friday for peace between Iran and the United States after President Donald Trump said a deal could be signed as soon as this weekend, even as Tehran said it had not made a final decision on a pact.
The deal, if confirmed, would be the most significant diplomatic breakthrough yet to end the three-month-old war, which has killed thousands and sent global energy prices sharply higher after Iran all but closed the Strait of Hormuz to shipping.
“We just made a great settlement of the war with Iran,” Trump told reporters at the White House on Thursday.
“The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” he said, adding that Vice President JD Vance would attend the deal signing.
Asked if Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal, Trump said, “I understand the answer is yes.”
Since mid-March, Trump has repeatedly claimed a deal with Iran to end the war was close. The two sides have traded strikes this week, straining a ceasefire announced in April.
Iranian media reported Foreign Ministry spokesperson Esmaeil Baghaei as saying large parts of the agreement have been finalised, but Iran would not compromise on its red lines.
“We have not reached a conclusion on this matter,” he said. “This is a very important issue that is currently being reviewed by the relevant decision-making bodies.”
US aircraft head to Europe ahead of possible trip by Vance for Iran deal signing: Axios
Four US Air Force C-17 transport aircraft departed for Europe on Thursday carrying equipment for a possible trip by Vice President JD Vance to Geneva for the signing of a prospective agreement between the US and Iran, Axios reported.
The online outlet, citing sources familiar with the preparations, said the military flights were linked to a potential signing ceremony that could take place in the coming days if ongoing efforts to finalise the agreement succeed.
The reported preparations came after President Donald Trump said earlier Thursday that Washington and Tehran had reached a “great settlement” and could sign an agreement as soon as this weekend.
According to Axios, the proposed memorandum of understanding would extend the current ceasefire for 60 days while opening negotiations on a broader deal covering Iran’s nuclear program.
The draft agreement reportedly calls for the immediate reopening of the Strait of Hormuz without transit fees and seeks to restore shipping volumes to pre-war levels within 30 days.
In return, Iran would commit not to pursue a nuclear weapon and would address concerns over its stockpile of enriched uranium. Any concrete steps regarding Tehran’s nuclear program would be subject to a separate, more detailed agreement, according to the report.
Axios said the deal would also provide Iran with phased sanctions relief tied to compliance with its commitments, including temporary waivers allowing oil exports.
The report said the tentative agreement was reached Wednesday night following talks between Qatari mediator Ali Al-Thawadi and Iranian Foreign Minister Abbas Araghchi, with Trump’s envoys Steve Witkoff and Jared Kushner – also Trump’s son-in-law – involved in the negotiations.
Iran’s Foreign Ministry has said Tehran has not yet made a final decision on the proposed accord, while Axios reported that the agreement is still awaiting final approval from Iran’s top leadership.
If signed, the deal is expected to be known as the “Islamabad Agreement,” reflecting the mediation efforts of Qatar and Pakistan.
Markets rally despite tension
Asian stocks joined a strong global rally on Friday on hopes that a peace deal may finally materialise, while oil prices fell to two-month lows.
Still, tension remained high around the Strait of Hormuz, with US forces shooting down two Iranian one-way attack drones after Tehran attempted to strike commercial ships transiting the vital waterway, a US official said.
Iran’s military stopped a tanker from transiting the strait, state media said, reporting the sound of explosions early on Friday.
Trump’s announcement came after he called off planned military strikes on Iran, citing progress in talks.
Read: Trump says ‘great settlement’ reached with Iran, signing expected in Europe
“It’s a very strong memorandum of understanding that is a little conceptual,” Trump told reporters.
Trump has repeatedly said any peace deal must ensure Iran cannot develop a nuclear weapon. Iran denies it is seeking such a weapon.
Iran’s demands include the lifting of international sanctions, the release of billions of dollars in frozen assets and recognition of its control of the Strait of Hormuz.
“The big thing is there will be no nuclear weapons in Iran. That means not developed and not purchased,” Trump later said during a campaign event held by telephone.
Tit-for-tat strikes
Earlier on Thursday, Trump said the United States would hit Iran “very hard tonight” and wanted eventually to take its oil infrastructure hub, Kharg Island.
The conflict has become a political headache for the White House, with polls showing Trump’s approval ratings sinking amid voter anger over high gasoline prices.
Some Republicans have openly worried that the war’s unpopularity could cost them control of Congress in November’s midterm elections.
But Trump’s political considerations also include satisfying Iran hawks within his Republican Party, who scuttled a prior effort, that any agreement closes Tehran’s path to developing a nuclear weapon.
The reaction of other Middle East powers will also be crucial.
Trump said on social media the agreement had been approved by countries including Israel, Saudi Arabia, Qatar and the United Arab Emirates.
Prime Minister Benjamin Netanyahu’s office said in a statement after the Israeli leader and Trump spoke that Israel was not a party to the memorandum of understanding with Iran.
Netanyahu expressed his appreciation for Trump’s commitment to securing a deal that includes removing enriched material, dismantling enrichment infrastructure, limiting missile output and ending support for regional proxies, the summary showed.
Tehran has been demanding an end to Israeli attacks in Lebanon, where fighting has continued in a parallel war between Israel and Iran-backed Hezbollah militants.
