United States President Donald Trump announced on Sunday that the United States and Iran are on the verge of signing a historic peace agreement. In a series of enthusiastic social media posts, Trump declared that a massive 14-point Memorandum of Understanding is “largely negotiated” and will be announced shortly. This breakthrough aims to secure a 60-day extension of the ceasefire, end the brutal three-month-old war, and reopen the crucial Strait of Hormuz to global shipping.
The breakthrough followed a busy weekend of high-stakes diplomacy in Washington. On Saturday, Trump hosted a massive joint phone call with leaders from exactly 10 different Middle Eastern nations, including Saudi Arabia, Qatar, the United Arab Emirates, Egypt, and Turkey. During this regional summit, Trump secured broad support for the deal, which negotiators thrashed out over weeks of quiet shuttle diplomacy mediated by Pakistan and Qatar.
The centerpiece of the proposed 60-day agreement is the immediate and complete reopening of the Strait of Hormuz. Under the strict terms of the draft pact, Iran must clear all of the underwater sea mines it deployed during the war and allow commercial shipping to transit without paying any illegal tolls. This narrow channel is a vital global chokepoint, historically handling roughly 20 percent of the world’s daily oil and gas supply.
A U.S. official familiar with the negotiations described the agreement as a “relief for performance” model. Instead of giving Iran upfront benefits, the United States will only grant economic relief after Tehran takes concrete, verifiable steps to reduce tensions. Once Iran clears the mines and opens the shipping lanes, the United States Navy will officially lift its strict naval blockade on all Iranian commercial ports.
To help the Iranian economy survive, the U.S. Treasury Department will also issue limited, temporary sanctions waivers. These waivers will allow Iran to sell its crude oil freely to international buyers during the 60-day ceasefire period. This massive economic concession represents a major victory for Tehran, which has seen its energy exports completely cut off by the American blockade over the last month.
The most politically sensitive part of the deal involves Iran’s controversial nuclear program. The draft agreement includes strict commitments from Iran never to pursue nuclear weapons. In addition, the theocratic government in Tehran agreed to hold active negotiations during the 60-day window regarding a total suspension of its uranium enrichment program and the complete removal of its highly enriched uranium stockpile from the country.
News of the imminent deal sent shockwaves through the global energy sector. Saudi Aramco Chief Executive Officer Amin Nasser recently delivered a grim warning, stating that global oil markets are losing exactly 100 million barrels of crude every single week the Strait of Hormuz remains shut down. On Friday, Brent crude oil futures fell 1.7 percent to settle at $108.51 a barrel as traders anticipated the successful reopening of the shipping channel.
Trump has faced intense domestic pressure to lower fuel prices ahead of the crucial November midterm elections. The ongoing war has driven U.S. gasoline prices to a painful national average of $4.52 a gallon, pushing domestic inflation up by an extra 1.5% over the past two months. Trump’s political advisers hope that reopening the Strait of Hormuz will flood the market with cheap oil and cause gas prices to drop like a rock.
Although Trump is highly optimistic, some administration officials cautioned that the deal is not yet signed and could still collapse. The president is scheduled to meet with his national security team to make a final decision by Sunday evening. If both sides sign the paperwork, it will prevent a massive escalation of the war, stabilize global energy markets, and save international businesses more than $1.5 billion every week.
