Trump claims Iran deal to reopen Strait of Hormuz is 'largely negotiated'
Markets rally on news of diplomatic progress, though final terms remain under discussion and nuclear issues are excluded from initial framework.
US President Donald Trump has declared that a deal with Iran to reopen the Strait of Hormuz is largely negotiated, signalling a potential end to the ongoing conflict. Speaking on Truth Social on Saturday, Trump stated he would announce an agreement to end the war following consultations with Gulf leaders and allies. He indicated that final aspects and details of the deal are currently being discussed and would be announced shortly.
The claim emerges amid an active US-Israel war with Iran and a continuing blockade of the strategic waterway. While Trump characterised the negotiations as being in their final stages, the agreement remains subject to finalisation by US and Iranian negotiators, as well as various other countries. Iranian officials have echoed sentiments of progress, though the Iranian Foreign Ministry has specified that nuclear weapons will not be included in the initial framework of any agreement.
Diplomatic momentum appears to have built following a two-day summit in Beijing between Trump and Chinese President Xi Jinping. The meeting, which took place prior to Trump’s latest announcement, focused on trade, artificial intelligence, and Iran tensions. The diplomatic developments coincided with positive movement in global equity markets, suggesting investor appetite for de-escalation.
US stock indices rose during the week leading up to the announcement, with the Dow Jones Industrial Average gaining 0.8 per cent, the S&P 500 rising 0.3 per cent, and the Nasdaq Composite climbing 0.2 per cent. Nvidia shares also surged more than 2 per cent following news that the US had approved H200 chip sales to Chinese firms, adding to the week’s volatile but generally upbeat market sentiment.
The path to a formal ceasefire has been marked by fluctuating threats and pauses in hostilities. Trump had previously warned Iran that time was running out for a lasting ceasefire, at one point claiming to have been moments away from resuming attacks before deciding against it. The current assertion that the deal is largely negotiated marks a significant shift from the uncertainty that has characterised the conflict over the past week.
