President Donald Trump announced on Friday that Iran has agreed to indefinitely suspend its nuclear program and will not receive any frozen funds from the United States. In a phone interview, Trump stated that a deal to end the ongoing conflict, initiated by the US and Israel in late February, is largely complete. Talks over a lasting agreement are expected to take place this weekend.
Deal Details and Energy Market Impact
Trump emphasized that most of the main points of the deal have been finalized, predicting a swift conclusion. 'Most of the main points are finalized. It’ll go pretty quickly,' the president said. Iran has yet to publicly comment on the deal beyond confirming the temporary reopening of the Strait of Hormuz for the duration of a 10-day ceasefire between Israel and Lebanon.
The announcement has already impacted global energy markets, with Brent crude oil prices falling below $90 a barrel, reversing gains seen since the conflict began. Diesel prices in the US and Europe also dropped, signaling cautious optimism about the potential resumption of energy shipments through the Strait of Hormuz.
Uncertainty in the Strait of Hormuz
The situation in the Strait of Hormuz remains uncertain, as Iran has indicated it may close the waterway again if the US blockade on vessels transiting to and from Iranian ports persists. Iranian forces have stated that transiting vessels must coordinate with them, adding complexity to the reopening process.
Trump confirmed that the blockade will remain in place until a broader agreement with Iran is fully finalized. 'I may' travel to Pakistan, which hosted the last round of negotiations, he said, while also considering sending Vice President JD Vance, Jared Kushner, and envoy Steve Witkoff to lead talks with Iranian officials.
'No years, unlimited,' Trump said when asked about the duration of Iran's nuclear program suspension, dismissing claims of a 20-year expiration date.
As talks continue, the global energy market watches closely, with analysts skeptical about the immediate resumption of significant energy flows through the Strait of Hormuz, a critical waterway that once carried a fifth of the world’s oil and liquefied natural gas.