President Donald Trump announced on social media that a 'great settlement' has been reached with Iran, claiming that the peace deal could be signed as early as this weekend. However, Iran’s foreign ministry swiftly contradicted this assertion, stating that no final agreement has been concluded.
Trump’s Claims Contradicted
Trump stated that discussions with Iran had been approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, and Egypt. However, Israel’s Prime Minister Benjamin Netanyahu’s office clarified that Israel is 'not a party to' the emerging memorandum of understanding between the US and Iran. Netanyahu’s office did confirm ongoing discussions with Trump, highlighting potential terms such as the removal of enriched material, dismantling of enrichment infrastructure, limits on missile production, and cessation of Iran’s support for terrorist proxies. These measures have historically been red lines for Tehran.
Economic and Regional Implications
Trump also mentioned that the Strait of Hormuz would reopen 'as soon as we sign' the agreement, claiming 'the whole Middle East is happy.' Meanwhile, Iranian media reported that Iranian forces had stopped a 'violating tanker' from entering the Strait of Hormuz, following reports of explosions near the port city of Bandar Abbas. Oil prices saw significant fluctuations following Trump’s statements, initially rising due to threats of a 'very hard' attack on Iran before plunging after he announced the cancellation of US airstrikes. West Texas Intermediate crude futures fell 1.9% to $86.08 a barrel, while Brent dropped 1.5% to $89.08 a barrel.
Global Repercussions
Asian stocks surged in response to the geopolitical developments, with South Korea’s Kospi gaining 7.4% and Japan’s Nikkei rising 2.7%. In Lebanon, ongoing Israeli raids continued to impact the region, with hospitals in the city of Tyre reporting casualties. India’s government also lodged a 'strong protest' after three Indian seafarers were killed in US military strikes against oil tankers in the Strait of Hormuz.
Iran’s foreign ministry emphasized that discussions have not reached a final conclusion, rejecting Trump’s assertion of an imminent peace deal.