Trump says Iran peace deal is near; Strait of Hormuz may reopen

U.S. President Donald Trump said on Sunday that an agreement with Iran that would end the war and reopen the Strait of Hormuz appears close, and he urged negotiators not to rush the process. Reports the same day indicated Pakistan-led mediation and calls among regional leaders as part of the diplomatic push.

According to details reported by multiple outlets, the draft framework contemplates a phased approach: formally ending hostilities, restoring safe passage through the Strait of Hormuz, and then launching further negotiations on Iran’s nuclear program. Elements reportedly discussed include arrangements on Iran’s enriched uranium stock and the coordinated unfreezing of certain Iranian assets, though final approval would require Iran’s internal decision-making bodies to sign off.

Markets reacted to the prospect of easing supply disruptions. Hopes that shipping through the Strait of Hormuz could resume have pressured benchmark oil prices at times, producing volatile moves in Brent and WTI as traders reassess supply risk. Market commentators warn that until concrete, verifiable steps restore tanker traffic, energy markets will remain sensitive to diplomatic headlines.

The agreement—if completed—would carry broader geopolitical and economic implications. Reopening the Hormuz corridor would relieve one of the main bottlenecks in global crude flows and could ease upward pressure on energy-driven inflation. U.S. officials have cautioned that the timing depends on Iran’s internal approvals and that the process may take days to conclude, leaving near-term uncertainty intact.

Analysts say the immediate market reaction would likely be modestly bullish for risk assets and bearish for oil, but stressed that the durability of any price moves depends on implementation: physical tanker transits, verification measures and whether sanctions or asset freezes are adjusted. Investors will monitor diplomatic developments closely, including any formal memorandum of understanding and its route through Tehran's decision-making channels.