Prospects for a peace agreement between Iran and the United States brightened on Friday after President Donald Trump indicated that a deal could be finalized as early as this weekend, even though Tehran insisted it had not yet reached a definitive decision.
If confirmed, the agreement would mark the most important diplomatic step so far toward ending the three-month conflict, which has claimed thousands of lives and driven global energy prices higher after Iran effectively shut down shipping through the Strait of Hormuz.
“We just reached a great settlement to end the war with Iran,” Trump told reporters at the White House on Thursday.
“The strait will officially reopen as soon as we sign—possibly very soon, maybe even this weekend in Europe,” he added, noting that Vice President JD Vance would attend the signing ceremony.
When asked whether Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal, Trump replied, “My understanding is yes.”
Trump has repeatedly asserted since mid-March that a peace agreement with Iran was close. This week, both sides carried out strikes despite an April ceasefire, increasing tensions.
Iranian media quoted Foreign Ministry spokesperson Esmaeil Baghaei as saying that much of the agreement had been settled, but that Iran would not yield on its core demands.
“We have not made a final decision on this matter,” he said. “This is a highly important issue now under review by the relevant decision-making bodies.”
Asian markets rallied on Friday, joining a global surge driven by optimism that a peace deal may finally be within reach, while oil prices dropped to their lowest levels in two months.
Despite the hopeful signs, tensions around the Strait of Hormuz remained high. U.S. forces shot down two Iranian one-way attack drones after Iran attempted to strike commercial vessels passing through the key waterway, a U.S. official said.
Iran’s military also halted a tanker attempting to transit the strait, state media reported, noting explosions heard early Friday.
Trump’s comments followed his decision to cancel planned military strikes on Iran, citing progress in negotiations.
“It’s a very strong memorandum of understanding that is somewhat conceptual,” Trump told reporters.
