Iran says no final decision reached on agreement

President Donald Trump on Thursday said the United States and Iran could sign a peace agreement as early as this weekend, potentially reopening the Strait of Hormuz to international shipping. However, Tehran responded by saying that no final decision had yet been made regarding any deal.

If finalized, the agreement would represent the most significant diplomatic breakthrough so far in efforts to end the three-month-long conflict, which has claimed thousands of lives and driven global energy prices sharply upward.

According to Iranian media, Foreign Ministry spokesperson Esmaeil Baghaei said much of the draft agreement had been completed, but stressed that Iran would not compromise on its core positions.

"We have not yet reached a final conclusion on this issue," Baghaei said. "It is a very important matter that is currently under review by the relevant decision-making authorities."

Speaking to reporters at the White House, Trump expressed confidence that a settlement was near.

"We just made a great settlement of the war with Iran," he said.

Trump added that the Strait of Hormuz could reopen immediately after the agreement is signed, which he suggested could happen "very soon, maybe over the weekend in Europe." He also indicated that Vice President JD Vance could sign the deal on behalf of the United States.

Asked whether Iran's Supreme Leader Ayatollah Mojtaba Khamenei had approved the proposed agreement, Trump replied, "I understand the answer is yes."

The announcement followed Trump's decision to cancel planned military strikes against Iran, citing progress in negotiations. Financial markets reacted positively, with U.S. stocks rising and oil prices declining.

Since March, Trump has repeatedly stated that a deal to end the conflict was within reach, although both sides have continued exchanging attacks despite a ceasefire announced in April.

Describing the proposed accord, Trump said it was "a very strong memorandum of understanding that is a little conceptual."

A key U.S. demand remains preventing Iran from obtaining a nuclear weapon. Tehran has consistently denied seeking nuclear arms.

Iran, meanwhile, has called for the removal of international sanctions, access to billions of dollars in frozen assets, and recognition of its authority over the Strait of Hormuz.

"The big thing is there will be no nuclear weapons in Iran — not developed and not purchased," Trump later said during a campaign event conducted by telephone.

Escalating conflict

The war has killed thousands, primarily in Iran and Lebanon, and has rattled global markets since U.S. and Israeli forces launched airstrikes on Iran on February 28.

Although a fragile ceasefire came into effect in early April, hostilities have intensified in recent days.

After a U.S. Apache helicopter was shot down, Trump ordered fresh strikes near the Strait of Hormuz over a two-day period. Iran responded with missile and drone attacks targeting U.S. military bases in the region.

In Bahrain, authorities said debris from intercepted Iranian drones injured an 11-year-old girl and damaged several homes.

Earlier on Thursday, Trump warned that the United States would strike Iran "very hard tonight" and reiterated his desire to eventually control Kharg Island, the hub through which roughly 90 percent of Iran's oil exports pass.

Control of the island would allow Washington to significantly disrupt Iran's energy exports and exert substantial economic pressure on Tehran.

Iranian state media reported early Friday that Iranian forces had stopped a tanker from passing through the Strait of Hormuz without prior coordination. Around one-fifth of global energy shipments normally transit the strategic waterway, though traffic has been severely disrupted since the conflict began.

Political pressures

The war has also created political challenges for the White House, with public dissatisfaction over rising fuel prices contributing to a decline in Trump's approval ratings.

Some Republicans have expressed concern that the conflict's growing unpopularity could hurt the party's prospects in November's midterm elections.

At the same time, Trump faces pressure from Iran hawks within his party, who insist that any agreement must permanently block Tehran's path to acquiring nuclear weapons.

Regional reactions are expected to play a critical role in determining the success of any deal.

Trump claimed on social media that countries including Israel, Saudi Arabia, Qatar and the United Arab Emirates had endorsed the agreement.

However, the office of Israeli Prime Minister Benjamin Netanyahu later clarified that Israel was not a party to the memorandum of understanding under discussion.

According to a statement issued after Netanyahu spoke with Trump, the Israeli leader welcomed U.S. efforts to secure an agreement that would remove enriched nuclear material, dismantle enrichment facilities, limit missile production and end Iranian support for regional proxy groups.

Iran has also demanded an end to Israeli military operations in Lebanon, where clashes continue between Israeli forces and the Iran-backed Hezbollah movement.