U.S. President Donald Trump canceled planned military strikes against Iran on Thursday, citing progress in negotiations. He claimed that discussions had reached Iran's highest leadership and that a peace deal was imminent. Meanwhile, oil prices fell as tensions eased, though Iran's state-affiliated Fars News Agency denied any agreement had been finalized.
Core Developments
Trump announced the cancellation of strikes on Truth Social, stating that 'final points' of a potential deal had been approved by the U.S., Israel, and regional allies. He suggested a signing could occur as early as this weekend in Europe. However, Iran's Fars News Agency reported that Tehran had not approved any draft text for an agreement.
Market Reaction
Oil prices dropped on Friday, with Brent crude falling 1.3% and U.S. WTI crude down 1.4%. The decline followed Trump's announcement, though analysts noted that risks remained elevated due to Iran's ongoing blockade of the Strait of Hormuz, a critical shipping lane for global oil supplies.
Diplomatic Context
The U.S. and Iran have engaged in a cycle of negotiations, military strikes, and ceasefire attempts over the past months. Trump has repeatedly claimed progress toward a deal, though previous announcements have not materialized. Iran's foreign ministry spokesperson, Esmail Baghaei, stated that Tehran had not reached a final conclusion on any agreement.
Key Provisions
If finalized, the deal would reportedly include a timeline for demining the Strait of Hormuz, mechanisms for further nuclear talks, and the release of frozen Iranian assets. Iran would commit to a 15-20 year lockout on uranium enrichment in exchange for financial relief. The U.S. naval blockade would remain in place until the deal is finalized.
Military Escalation
Earlier this week, Trump threatened to seize Iran's Kharg Island, a critical oil export hub, and warned of 'very hard' strikes. The U.S. had launched attacks on Iranian targets after Iran shot down an Army helicopter near the Strait of Hormuz. Iran's parliamentary speaker, Mohammad Bagher Qalibaf, accused the U.S. of violating international law.
Regional Reactions
Israel and several Arab allies, including Saudi Arabia and the UAE, were reportedly involved in the negotiations. However, a senior Israeli official told local media that Israel was unaware of any agreement. The G7 summit in France next week is expected to address the disruption to global trade caused by the conflict.
Opposing Views
Analysts noted that Trump's repeated threats and claims of imminent deals have raised skepticism about the credibility of the latest announcement. Some experts suggested that Iran may not take U.S. threats seriously due to the pattern of unfulfilled warnings.