President Donald Trump pulled back threatened military strikes against Iran, a stark reversal that came just hours after he vowed to hit the Islamic Republic “VERY HARD” and threatened to seize its oil infrastructure.
US forces had already pounded Iran with airstrikes for two straight days when Trump on Thursday morning said they would do so for a third. But then in the afternoon, Trump announced on social media the attacks were off, claiming again that a deal was close — without any confirmation from Iran.
Trump told reporters in the Oval Office that a signing could take place as soon as this weekend in Europe and that Vice President JD Vance would attend if it materializes. He also said Iran’s supreme leader had agreed to a deal, though he cautioned it was not finalized.
Read more: Trump Says US Will Hit Iran ‘Very Hard Tonight,’ Wants Control of Energy Infrastructure
The president described it as “a very strong memorandum of understanding that is a little conceptual,” which would restart shipping in the Strait of Hormuz and include commitments from Tehran to not pursue a nuclear weapon.
“We ended the war with Iran today,” Trump told an evening tele-rally for Burt Jones, who’s running for the US Senate in Georgia. During another tele-rally for Barry Moore, a Senate candidate in Alabama, the president said, “We made a great deal. There’ll be no nuclear weapons. People will start coming home very soon. It’s pretty much, pretty much completed. We got everything we wanted.”
Iran’s semi-official news agency Fars, however, said earlier Thursday that officials had not yet approved the text of any agreement with the US, citing an unnamed source. Iran’s nuclear program and its frozen assets have long been sticking points in the talks.
The memorandum of understanding would extend the ceasefire by 60 days, including in Lebanon, immediately reopen the Strait of Hormuz without tolls and provide Iran with sanctions relief tied to its compliance with the agreement, Axios reported, citing an unnamed US official and a diplomat from one of the mediating countries. In return, the US would lift its naval blockade, and the two sides would continue nuclear negotiations during the truce.
Oil plunged while stocks rebounded on Trump’s comments. MSCI’s Asia Pacific equities gauge jumped 3.3% in its biggest advance in two months. Brent crude fell about 1.3% to around $89 a barrel.
Trump’s announcement is the latest in a series of mixed signals about a war that is now in its fourth month, despite his initial prediction that it would last four to six weeks. The conflict has become increasingly unpopular with Americans facing higher fuel prices.
The US president has repeatedly insisted a deal was within reach, yet none has materialized. His latest claim came days after a two-month ceasefire collapsed amid tit-for-tat strikes.
Talks between the US and Iran have continued despite the violence, according to people familiar with the diplomacy, with Qatar playing an increasingly important role as mediator. One person said both sides are using military exchanges to seek leverage in negotiations.
Trump said he spoke to Israeli Prime Minister Benjamin Netanyahu and the leaders of the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait, and planned to speak with Turkish President Recep Tayyip Erdogan. Iran was notably absent from an earlier list of countries that Trump claimed had agreed to a deal framework.
In a statement about the call, Netanyahu’s office said “the prime minister expressed his appreciation for President Trump’s commitment that the final agreement at the conclusion of negotiations will include the removal of enriched material, the dismantling of enrichment infrastructure, limits on missile production, and the cessation of Iran’s support for its terrorist proxies in the region.”
Earlier Thursday, Trump threatened to seize Kharg Island, a crucial Iranian energy hub, a move that would likely require US ground troops. He quickly expressed reservations, telling Fox News he was “not sure America has the appetite” for such an operation.
Read more: Oil Tankers Go Dark to Sneak More Barrels of Oil Through Hormuz
The president added in his earlier social media post that the US naval blockade of Iran “will remain in full force and effect until this Transaction is finalized.”
Here’s more on the conflict:
- US forces shot down two Iranian attack drones on Thursday night that appeared to be trying to strike commercial vessels in the Strait of Hormuz, a Fox News reporter said in a post on X, citing a US defense official.
- On Wednesday, Iran said Hormuz would be closed to all types of vessels, suggesting it would tighten its grip on the waterway. The claim came the same day Trump said the US military had supported the passage of more than 200 commercial ships through the strait.
- Talks remain stuck over several key issues, including the release of frozen Iranian funds, the future of Tehran’s highly enriched uranium stockpiles and Iran’s demand for a ceasefire in Lebanon.
- Trump told Fox News on Thursday that he has spoken to Iranian officials directly, telling them to stop bombing US assets. He didn’t say who he spoke to, in what would be a rare instance of a US president conversing directly with Iranian authorities.
Photograph: Ships anchored in the Strait of Hormuz near Larak Island, Iran on May 16, 2026; photo credit: Majid Saeedi/Getty Images Europe
Copyright 2026 Bloomberg.
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