A ship remains anchored on May 16, 2026 in the Strait of Hormuz near Larak Island, Iran. Negotiations between the U.S. and Iran over opening this critical waterway have largely stalled as the countries have rejected each other’s proposals to end the war that began when the U.S. 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 is “largely negotiated” and will 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 held calls from the Oval Office with the leaders of Saudi Arabia, the UAE, 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 largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries,” Trump said in the post.
Details of the agreement are being discussed “and will be announced shortly,” he said, including reopening the vital Strait of Hormuz, a key chokepoint for global energy trade.
The agreement includes a memorandum of understanding as a first phase, Iran’s foreign ministry said Saturday, before broader talks within 30 to 60 days.
Earlier Saturday, the Financial Times reported that a potential deal would establish a framework for nuclear talks, ease sanctions on Iran and unfreeze Tehran’s overseas assets.
There has been a fragile ceasefire in place since April 8, punctuated by skirmishes as the U.S. and Iran jockey over the Strait of Hormuz. The conflict has set off what Gulf states called the worst global energy crisis in decades, with higher energy prices in the U.S. feeding rising inflation and expectations that the Federal Reserve may need to increase interest rates.
Pakistani and Qatari negotiators held talks with Iranian counterparts on Thursday and Friday, while staying in regular contact with U.S. envoy Steve Witkoff, the FT reported.
Iran’s top negotiator told a Pakistani counterpart that Iran wouldn’t compromise its “legitimate rights” and expressed distrust of the U.S., Reuters reported Saturday.
Iran’s armed forces have rebuilt capabilities damaged since the start of the conflict in late February, Iran’s Parliament Speaker Mohammad Baqer Qalibaf said per Reuters.
A major sticking point has been Trump’s demand that Iran surrender its enriched uranium and permanently relinquish any nuclear weapons capacity.
Trump has also demanded Iran dismantle the Natanz, Fordow and Isfahan nuclear sites, which the U.S. bombed after joining Israel’s war against Iran last June in an earlier phase of the conflict.
Iran’s foreign ministry said that the two sides remain both “very far and very close” to an agreement, noting the U.S. had put forth “conflicting stances several times.”
Trump said Monday that the U.S. held off from renewing attacks on Iran this week while “serious negotiations” were underway.
Gulf states including Saudi Arabia, Qatar and the UAE have urged Trump to suspend the military assault, fearing Iranian retaliation against the region and further damage to global energy markets.
This story is developing. Please check back for updates.
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