US President Donald Trump claimed an initial agreement to end the war with Iran is close, hours after posting that he had cancelled fresh strikes on the country. “We just made a great settlement of the war with Iran,” he told reporters in the Oval Office on Thursday.
Iran’s foreign ministry spokesperson Esmail Baghaei told state television the reports were “speculative” and “nothing has been finalised”. Baghaei said the majority of the memorandum text had already been “finalised” but that the United States had made “excessive demands” and added “new requests”, and that Tehran would not “depart from its red lines”.
Brent crude plunged about 4.4% in the wake of Trump’s comments to roughly $89 a barrel, BBC reported. “We have a deal that Iran will never have a nuclear weapon, which was the whole purpose of what we had to go through to get this. So, it’s a very big thing,” Trump said. There will “probably be a signing, maybe in Europe” once the documents are finalised, he added, and the Strait of Hormuz would open “as soon as we have it signed”.
Trump said he had spoken to regional leaders including Gulf allies and Israeli Prime Minister Benjamin Netanyahu, claiming “the whole Middle East is very happy”. Netanyahu’s office confirmed the conversation but said Israel “is not a party to the memorandum of understanding”, while expressing appreciation for Trump’s commitment to a final agreement covering enriched-material removal, dismantling of enrichment infrastructure, missile-production limits and cessation of Iran’s regional proxy support.
In a follow-up briefing carried by Sky News on Friday, Trump said the document was in its “pretty final stage” and finalisation was possible in the next “few days”, with the signing expected to take place in Europe with Vice President JD Vance present. He added that he had also informed Turkish President Recep Tayyip Erdogan, alongside the earlier Netanyahu call, and reiterated that the Strait of Hormuz would reopen immediately after signing.
The about-face came hours after Trump had threatened to hit Iran “very hard” and warned the United States would “assume total control” over global oil and gas markets, raising the prospect of seizing Kharg Island — the terminal handling roughly 90% of Iran’s oil exports. Iran’s military threatened retaliation “more severe than before”, and top negotiator Mohammad Bagher Ghalibaf warned “wrong strategies and impulsive decisions” would create “an endless quagmire”.
The day before the Oval Office remarks, US Central Command launched fresh strikes on military, surveillance and radar sites in southern Iran, and Iran’s IRGC responded with missile and drone attacks on American bases in Bahrain, Kuwait and Jordan. An 11-year-old girl in Bahrain was injured by an Iranian drone, local authorities said, while Jordan shot down about 20 missiles. India separately summoned a senior American diplomat after confirming three Indian sailors were killed in a US strike on a tanker in the Gulf of Oman accused of violating the Iranian-ports blockade.
UN Secretary-General António Guterres said through a spokesperson he was “deeply concerned by the continuing escalation in the Middle East” and urged a return to the April ceasefire, BBC reported. Pakistan, Russia, China, Turkey, India and Saudi Arabia all called for de-escalation. US naval forces have fired on nine vessels so far under the blockade, including three this week — a regime aimed at choking Tehran’s oil-export revenue that Trump said would stay in place until the deal framework is signed.
Update — Friday Reuters scoop on memorandum terms: A Western source told Reuters on Friday that the memorandum could be signed as soon as Sunday, with Geneva emerging as the likeliest venue. The source said the language was still being finalised but the aim was to complete the wording on Saturday so the document could be signed by Vance and Iran’s Parliament Speaker Mohammed Baqer Qalibaf. A senior Iranian source said the draft would waive sanctions on Iran’s oil, unfreeze billions of dollars of its funds and require a cessation of hostilities on all fronts including in Lebanon, where Israel has been battling Hezbollah; nuclear issues would be set aside for later talks. Iran’s Mehr news agency separately said the terms included U.S. commitments to withdraw forces from around Iran and to present a plan for rebuilding the economy worth “at least $300 billion”. Brent crude was down more than 2% in European morning trade on the signing prospect.
Update — Pakistan PM confirms ‘final agreed text’; Trump rebuts Iran leak (Friday): Pakistani Prime Minister Shehbaz Sharif wrote on X that the U.S. and Iran had reached a “final, agreed upon text”, with Islamabad — which has mediated the talks throughout the war — “now working closely with both sides to finalize the next steps.” Iran’s Foreign Minister Abbas Araghchi separately said the memorandum “has never been closer” and urged media to “refrain from entering speculation about its content.” Iran’s Mehr news agency then published 14 purported provisions including the lifting of U.S. oil sanctions, an end to the naval blockade, release of frozen funds and “at least $300 billion” to address damage from U.S. and Israeli strikes; the draft also required that “half of Iran’s frozen assets” be released and the blockade lifted before final negotiations begin. Trump fired back on Truth Social that the reports “have NOTHING to do with the terms that were agreed to, in writing”, calling Iranian negotiators “very dishonorable people” who should “get their act together, and FAST!” A senior U.S. administration official told BBC the deal required nuclear material be destroyed and removed, the programme dismantled, Hormuz reopened and Iranian funding for Hezbollah and other proxies halted, with no funds released until those demands were met. Vice President JD Vance added on X that “Iranians are not receiving any cash, and no funds are being released for simply signing a deal or attending a meeting” — economic benefits would flow only “if the Islamic Republic of Iran meets its obligations.”
Sources: Ada Derana — Donald Trump says deal to end Iran war is close after calling off strikes; Ada Derana — Deal agreed and may be signed ‘over the weekend’: Trump; BBC — Trump says deal to end Iran war is close after calling off strikes; Ada Derana / Reuters — U.S.-Iran peace memorandum could be signed on Sunday in Geneva; Ada Derana / CNBC — U.S. and Iran have ‘final, agreed upon text’ of a deal, Pakistan PM says; Ada Derana / BBC — Trump accuses Iran of leaking agreement details that ‘bear no relation to the truth’.
