Trump Says Iran War Could End Soon As Tehran Reviews U.S. Peace Proposal

U.S. President Donald Trump on Wednesday predicted a swift end to the war with Iran as Tehran reviewed a U.S. peace proposal that sources said would formally end the conflict while leaving unresolved key U.S. demands over Iran’s nuclear programme and the reopening of the Strait of Hormuz.

“They want to make a deal. We've had very good talks over the last 24 hours, and it's very possible that we'll make a deal,” Trump told reporters in the Oval Office. He later said: “it'll be over quickly.”

Trump has repeatedly highlighted the possibility of an agreement to end the war that began on February 28, though the two sides remain divided over issues including Iran’s nuclear ambitions and its control of the Strait of Hormuz, which before the war handled one-fifth of the world’s oil and gas supply.

According to Reuters, an Iranian foreign ministry spokesperson cited by ISNA news agency said Tehran would convey its response, while Iranian lawmaker Ebrahim Rezaei, spokesperson for parliament’s foreign policy and national security committee, described the proposal as “more of an American wish-list than a reality.”

A Pakistani source and another source briefed on the mediation said an agreement was close on a one-page memorandum that would formally end the conflict, Reuters reported. The memorandum would begin discussions on reopening shipping through the strait, lifting U.S. sanctions on Iran and setting curbs on Iran’s nuclear programme, the sources said.

Iran’s parliament speaker Mohammad Baqer Qalibaf appeared to mock reports suggesting the two sides were nearing an agreement, writing on social media in English that “Operation Trust Me Bro failed.”

Qalibaf said such reports amounted to U.S. spin after Washington failed to reopen the Strait of Hormuz.

Reports of a possible agreement pushed global oil prices sharply lower on Wednesday, with benchmark Brent crude futures falling about 11% to around $98 a barrel before recovering above the $100 mark. Global share prices rose and bond yields fell on hopes the war could end and ease pressure on energy supplies.

“The contents of the U.S.-Iran peace proposals are thin, but there is an expectation in the market that further military action will not take place,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.

Trump on Tuesday paused a two-day-old naval mission to reopen the blockaded strait, citing progress in peace talks.

NBC News, citing two unnamed U.S. officials, said Trump’s sudden reversal came after Saudi Arabia suspended the U.S. military’s ability to use a Saudi base for the operation. According to Reuters, Saudi officials were angered by Trump’s announcement that the United States would help escort ships through the Strait of Hormuz and informed Washington they would deny permission for U.S. military aircraft to use Saudi bases or Saudi airspace.

The White House did not immediately respond to a request for comment on the report.

The U.S. military has continued its blockade on Iranian ships in the region. U.S. Central Command said forces fired at an unladen Iranian-flagged tanker on Wednesday, disabling the vessel as it attempted to sail towards an Iranian port in violation of the blockade.

The source briefed on the mediation said the U.S. negotiations were being led by Trump envoy Steve Witkoff and son-in-law Jared Kushner, Reuters reported. If both sides agree to the preliminary deal, it would begin 30 days of detailed negotiations towards a full agreement.

While the sources said the memorandum would not initially require concessions from either side, they did not mention several key U.S. demands that Iran has previously rejected, including restrictions on Iran’s missile programme and an end to its support for proxy militias in the Middle East.

The sources also made no mention of Iran’s stockpile of more than 400 kg of near-weapons-grade uranium.

(With inputs from Reuters)