President Donald Trump said Saturday that a peace deal with Iran to end the war and reopen the Strait of Hormuz is largely negotiated [1].
The agreement aims to restore stability to one of the world's most critical maritime chokepoints, which is essential for the global flow of energy and trade.
Trump announced the progress via a Truth Social post and during a broadcast on CBS Evening News while in the Oval Office [1, 2]. He said the final aspects of the deal are currently being worked out to ensure the conflict concludes and international shipping can resume through the strait [1, 3].
According to Trump, the progress follows discussions with Israel and other regional allies [6]. He said, "The deal is largely negotiated and we will have it shortly" [2].
Market reactions were immediate following the announcement. Crude oil prices fell by seven percent [7].
While the president described the agreement as nearly complete, some reports indicate that one key issue remains unresolved [4]. Trump said the Strait of Hormuz will be reopened upon approval of the final agreement [4].
Trump reiterated that the goal of the negotiations is to end the current hostilities and ensure the secure passage of vessels [1, 3]. He said, "The agreement with Iran has been largely negotiated and the Strait of Hormuz will be reopened upon approval" [4].
“The deal is largely negotiated and we will have it shortly.”
The reopening of the Strait of Hormuz is a critical economic trigger because a significant portion of the world's petroleum passes through the narrow waterway. A finalized deal would likely reduce the geopolitical risk premium on oil prices and stabilize energy markets that have been volatile due to the conflict.
