Trump Claims Iran Peace Deal 'Largely Negotiated' as Strait of Hormuz Reopening Nears
A potential US-Iran peace agreement could end months of conflict, reopen the critical Strait of Hormuz shipping lane, and unfreeze billions in Iranian assets — but deep disagreements remain over key details.
A Deal in the Making
On Saturday, May 23, President Donald Trump announced that a peace agreement with Iran “has been largely negotiated,” following a series of high-stakes phone calls with Middle Eastern leaders, Gulf allies, and Israeli Prime Minister Benjamin Netanyahu. The announcement signals a potential end to the US-Israeli military campaign against Iran that began in February 2026.
Writing on Truth Social, Trump described the arrangement as a “memorandum of understanding” with “final aspects and details” still being worked out. The centerpiece: the reopening of the Strait of Hormuz, one of the world’s most critical oil shipping chokepoints, which had been blocked amid the conflict.
What’s in the Proposed Deal
According to reports from Axios and the Associated Press, the draft agreement includes several major provisions:
- Strait of Hormuz reopening with no tolls during a 60-day ceasefire extension
- Iran allowed to freely sell oil on international markets
- US lifting its blockade on Iranian ports
- An official declaration ending the war
- 30 to 60 days of nuclear negotiations to address Iran’s enrichment program
- Potential release of $25 billion in frozen Iranian overseas assets
Pakistan’s Army Chief, Syed Asim Munir, has emerged as a key mediator, holding meetings with Iranian President Masoud Pezeshkian and parliamentary speaker Mohammad Bagher Ghalibaf in Tehran. Pakistan’s Prime Minister Shehbaz Sharif congratulated Trump and offered to host the next round of talks.
The Contradictions
Despite Trump’s optimistic framing, significant gaps remain. Iran’s Fars news agency, close to the Islamic Revolutionary Guard Corps (IRGC), pushed back hard — declaring that the Strait of Hormuz would remain under Iranian control, with passage permits, routing, and timing staying “the monopoly and discretion of the Islamic Republic of Iran.” The agency called Trump’s claims “inconsistent with reality.”
This control over the strait has been a non-negotiable red line for Washington, making it one of the thorniest unresolved issues.
Domestic Backlash in the US
The potential deal has drawn fierce criticism from Republican hawks. Mike Pompeo, Trump’s former CIA director and secretary of state, denounced the rumored terms as essentially a replay of the 2015 Obama-era JCPOA nuclear deal — the same agreement Trump withdrew from in 2018, calling it “the worst deal ever.”
Conservative critics argue that releasing frozen assets and allowing Iran to sell oil freely would empower the IRGC without guaranteeing meaningful nuclear concessions. Trump himself acknowledged the tension, telling CBS he would only sign a deal “where we get everything we want,” while simultaneously threatening to resume strikes if negotiations collapse.
Regional Ripple Effects
The negotiations have drawn in an extraordinary cast of regional players. Trump’s calls included the leaders of Saudi Arabia, the UAE, Qatar, Egypt, Jordan, Bahrain, Turkey, and Pakistan — a diplomatic blitz that underscores how much the Iran conflict has reshaped Middle Eastern politics.
Israel’s Netanyahu also reportedly had a “very good” call with Trump, though it remains unclear whether Israel would accept any deal that leaves Iran’s nuclear infrastructure intact. Meanwhile, three senior Iranian officials told the New York Times the agreement would also halt fighting in Lebanon, where Israeli strikes have continued despite a supposed ceasefire.
What Happens Next
With special envoy Steve Witkoff and adviser Jared Kushner leading the American negotiating team alongside JD Vance, the coming days will determine whether this “largely negotiated” deal becomes reality or unravels over the strait’s control and nuclear terms.
For global markets, the stakes are enormous. The Strait of Hormuz handles roughly 20% of the world’s oil transit. Its reopening could ease energy prices that have surged during the conflict. But if talks stall and military escalation resumes, the economic fallout would be swift and severe.
The world watches — and waits.