WASHINGTON/DUBAI (Reuters) – President Donald Trump on Thursday said the United States and Iran could sign a peace deal as soon as this weekend that ​would reopen the Strait of Hormuz to shipping, but Iran countered that it had not reached a final decision on an agreement.
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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.
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Iranian media reported Foreign Ministry spokesperson Esmaeil Baghaei as saying that large parts of the text under negotiation have been finalized but Iran would not compromise on its red lines.
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“We have not reached a final conclusion on this matter,” he said. “This is a very important issue that is currently being reviewed by the relevant decision-making bodies.”
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Trump, ​meanwhile, told reporters at the White House: “We just made a great settlement of the war with Iran.”
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“The strait will officially open as soon as we sign, which could be soon, ​very soon, maybe over the weekend in Europe,” Trump said, adding Vice President JD Vance could sign for the United States.
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When asked if Iran’s â Supreme Leader Ayatollah Mojtaba Khamenei approved the deal, Trump said: “I understand the answer is yes.”
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Trump’s announcement came after he called off planned military strikes on Iran, citing progress in talks. US stocks rose ​and oil prices fell on the news.
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Since mid-March, Trump has repeatedly claimed that a deal with Iran to end the war was close. The two sides have traded strikes this week, straining a ​ceasefire announced in April.
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“It’s a very strong memorandum of understanding that is a little conceptual,” Trump told reporters.
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Trump has repeatedly said that any peace deal must ensure Iran cannot develop a nuclear weapon. Iran denies it is seeking such a weapon.
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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.
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“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.
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TIT-FOR-TAT STRIKES
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The war has killed thousands of people, mainly in Iran and Lebanon, and ​hit the world economy by pushing up energy prices since the US and Israel launched airstrikes on Iran on February 28.
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In recent days, the conflict has intensified despite a tenuous ceasefire that took effect in early ‌April.
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After â a US Apache helicopter was downed, Trump this week ordered new strikes around the Strait of Hormuz over two days.
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At the same time, Iran launched missile and drone attacks on US bases in the region.
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Bahrain’s interior ministry said on Thursday an 11-year-old girl suffered minor injuries and homes were damaged after debris fell from Iranian drones that were intercepted and destroyed.
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Trump had said earlier Thursday that the United States would hit Iran “very hard tonight” and wanted eventually to take Iran’s oil infrastructure hub Kharg Island.
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The island handles 90% of Iran’s oil exports and seizing it would give the United ​States the ability to severely disrupt Iran’s energy ​trade, placing enormous pressure on Tehran’s economy.
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Iranian â state media said early on Friday that the country’s forces prevented a tanker from transiting the Strait of Hormuz without coordination. One-fifth of the world’s energy shipments normally travel through the narrow waterway, but it has been largely shut since the war began.
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DOMESTIC PRESSURES
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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.
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Some Republicans have openly worried that ​the war’s unpopularity could cost â them control of Congress in November’s midterm elections.
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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.
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The reaction of other Middle East powers will also be crucial.
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Trump said on social media that the agreement had been approved by countries including Israel, Saudi Arabia, Qatar and the United Arab Emirates.
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Prime Minister Benjamin Netanyahu’s â 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.
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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, according to the readout.
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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.