A ship remains anchored on May 16, 2026 in the Strait of Hormuz, near Larak Island, Iran. Negotiations between the United States and Iran over opening the critical waterway have largely stalled, with the countries rejecting each other’s proposals to end the war that began when the United States and Israel attacked Iran on February 28.
Majid Saeedi | Getty Images News | Getty Images
President Donald Trump said Saturday that a peace deal with Iran that would reopen the Strait of Hormuz was “largely negotiated” and would be announced shortly, a development that could end a conflict that has choked global energy markets and pushed U.S. inflation to its highest level in years.
Trump said in a social media post that he had calls from the Oval Office with the leaders of Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan and Bahrain, as well as Israeli Prime Minister Benjamin Netanyahu, all focused on finalizing terms with the Islamic Republic of Iran.
“An agreement has been extensively negotiated, subject to finalization, between the United States of America, the Islamic Republic of Iran and the various other countries,” Trump said in his message.
Details of the deal are being discussed “and will be announced shortly”, he said, including the reopening of the Strait of Hormuz, a key chokepoint for global energy trade.
The agreement under discussion initially includes a memorandum of understanding, the Iranian Foreign Ministry announced on Saturday, before broader negotiations within 30 to 60 days.
Always, clear sticking points between the two parties seems to remain.
Iran’s Fars News Agency reported that the Strait of Hormuz would remain under Iran’s management, according to the latest text exchanged between Iran and the United States. The report dismissed Trump’s announcement to reopen the strait in a “largely negotiated” deal as “incomplete and inconsistent with reality.”
Trump also failed to mention any agreement on Iran’s nuclear program or its highly enriched uranium, which his administration has repeatedly cited as essential to ending the war. Iran has sought to postpone nuclear negotiations until a formal cessation of hostilities.
Any announcement from the Trump administration could be delayed after gunshots were heard very close to the White House, which caused a security lockdown.
Earlier on Saturday, the Financial Times reported that a potential deal would establish a framework for nuclear negotiations, ease sanctions on Iran and unlock Tehran’s assets abroad.
A fragile ceasefire has been in place since April 8, punctuated by skirmishes as the United States and Iran dispute the Strait of Hormuz. The conflict has triggered what Gulf states have called the worst global energy crisis in decades, with higher energy prices in the United States rising inflation And expectations that the Federal Reserve may have to raise interest rates.
Pakistani and Qatari negotiators held talks with their Iranian counterparts on Thursday and Friday, while remaining in regular contact with US envoy Steve Witkoff, the FT reported.
Iran’s chief negotiator said Pakistani counterpart says Iran will not compromise its “legitimate rights” and expresses distrust of the United States, Reuters reported SATURDAY.
Iran’s armed forces have rebuilt their damaged capabilities since the start of the conflict in late February, Iranian Parliament Speaker Mohammad Baqer Qalibaf said, according to Reuters.
One of the main sticking points has been Trump’s demand that Iran give up its enriched uranium and permanently give up all nuclear capabilities.
Read more about CNBC’s politics coverageTrump also called on Iran to dismantle the nuclear sites at Natanz, Fordow and Isfahan, which the United States bombed after joining Israel’s war against Iran last June in an earlier phase of the conflict.
Iran’s Foreign Ministry said the two sides remained both “very far away and very close” to an agreement, noting that the United States had presented “conflicting positions on several occasions.”
Trump said Monday that the United States had backed away from renewed attacks on Iran this week while “serious negotiations” were underway.
Gulf states including Saudi Arabia, Qatar and the United Arab Emirates have urged Trump to halt the military assault, fearing Iranian retaliation against the region and further damage to global energy markets.
Pakistani Prime Minister Shehbaz Sharif praised Trump for holding “a very useful and productive call” with regional leaders, adding in a statement job on
Office of Turkish President Recep Tayyip Erdogan said his country “is ready to provide any type of support during the implementation phase of a possible agreement with Iran.”
