Trump halts Iran strikes as nuclear deal hopes lift markets
Donald Trump cancels planned US strikes on Iran after claiming progress on a nuclear deal, easing market fears and sending oil prices lower
US President Donald Trump has cancelled a fresh round of planned strikes on Iran, claiming that a diplomatic breakthrough with Tehran has brought Washington close to ending its latest military confrontation in the Middle East.
The decision halted what would have been a third consecutive day of US air strikes and bombing operations against Iranian targets.
Trump told supporters that the United States had “ended the war with Iran”, saying details on the time and location for the signing of what he described as a historic peace agreement would be announced over the weekend.
His announcement came only hours after he had threatened tougher action against Tehran, including the possible seizure of Kharg Island and attacks on Iran’s energy infrastructure if negotiations failed.
The shift was presented by Trump as evidence that his pressure campaign had forced Iran to accept stricter nuclear conditions.
Trump said the proposed agreement would close what he described as a loophole in earlier nuclear restrictions. He argued that Iran must not only be barred from developing nuclear weapons, but also from acquiring them through purchase.
“The most important thing is that Iran will never have nuclear weapons, and that means neither developing nor purchasing them,” Trump said.
He added that earlier terms only addressed domestic development, leaving ambiguity over outside acquisition.
After two days of talks, he claimed, Iran had agreed to accept the expanded condition, allowing US troops to begin preparing to return home.
However, Tehran has not confirmed that a final deal has been signed.
Iran’s foreign ministry spokesman Esmaeil Baghaei acknowledged progress on the structure of a possible agreement, but said the final text was still under careful review.
Reuters and the Guardian also reported that Iran had not confirmed Trump’s claim of a completed agreement.
The uncertainty has left diplomats and markets watching closely for confirmation from both sides.
For now, the announcement has been enough to calm immediate fears of another escalation, particularly after two days of US strikes and Iranian countermeasures had raised concerns over energy supplies and regional security.
Financial markets reacted quickly to the prospect of de-escalation. Wall Street closed higher, with the Dow Jones Industrial Average gaining 1.75% and the Nasdaq rising 2.54%, as investors eased concerns that a wider conflict could worsen inflationary pressure.
Oil prices also dropped after the announcement. Brent crude fell by US$1.21, or 1.3%, to US$89.17 a barrel, while US West Texas Intermediate dropped US$1.23, or 1.4%, to US$86.48 a barrel. Over the week, crude prices declined by around 4.4%, offering temporary relief to markets worried about higher energy costs.
Despite the diplomatic opening, the wider security situation remains fragile.
The US Navy reportedly intercepted two one-way attack drones launched by Iranian forces near the Strait of Hormuz, where Tehran had earlier announced restrictions on shipping through the strategic waterway.
Fighting has also continued in Lebanon. Israel said its forces had taken control of strategic ground north of Wadi Saluki, around 10 kilometres inside southern Lebanon, while Hezbollah claimed it had launched repeated rocket, missile and drone attacks against Israeli positions over the previous 48 hours.
The coming days are expected to determine whether Trump’s announcement marks the beginning of a genuine diplomatic settlement or only a temporary pause in a volatile confrontation.
