Trump Claims Iran Deal Close as Tensions Linger, June 12

President Donald Trump said Thursday he cancelled planned military strikes on Iran and claimed negotiators had reached a “great settlement” to end the three-month conflict. Trump told reporters a memorandum of understanding could be signed as early as this weekend in Europe. Iran’s Foreign Ministry rejected the claim, saying no final agreement exists and accusing the US of making “excessive demands.” Oil prices fell 4.4% to $89 per barrel on the announcement.

Trump Reverses Course on Iran Strikes

Trump opened Thursday by threatening to hit Iran “very hard” and seize Kharg Island, which handles 90% of Iran’s crude exports. Hours later, he posted on social media that he had cancelled the strikes after “significant points” in negotiations were “approved” by Iranian leadership. Trump said the memorandum of understanding is in “final shape” and aims to ensure Iran never acquires nuclear weapons. He also pledged to lift the US naval blockade of the Strait of Hormuz immediately upon signing.

Iran Disputes Deal Claims

Iran’s Foreign Ministry spokesperson Esmail Baghaei told state television that reports of an agreement were “speculative” and “nothing has been finalised.” Baghaei accused the US of making “unreasonable demands” and repeatedly changing its position during talks. A hardline Iranian lawmaker warned that Trump may be acting deceptively to keep the situation calm. Iran continues to demand sanctions relief, release of frozen assets, and recognition of its control over the Strait of Hormuz.

Oil Markets React to De-escalation Talk

Brent crude fell to $89 per barrel, down 4.4% on the day, after Trump announced the strike cancellation. US stock markets closed with gains following the announcement. Trump said the Strait would officially open once a deal is signed, which would allow global oil shipments to resume through the critical waterway. The price drop reflects investor relief that a major escalation has been avoided for now.

History of Failed Promises

Trump has claimed multiple times in recent weeks that a deal with Iran was close without one materialising. The US and Israel launched wide-ranging strikes on Iran on 28 February, and Iran responded by attacking Israeli and US-allied positions in the Gulf. A ceasefire was agreed in April, but the US and Iran have exchanged intermittent fire, including two rounds of tit-for-tat strikes this week. Qatar has served as a mediator in the negotiations, with delegations meeting in Tehran into the early hours of Thursday morning.

Final Thoughts

Trump’s claim of an imminent Iran deal lacks confirmation from Tehran, leaving the path to peace uncertain. Oil markets have priced in de-escalation hopes, but investors should watch for Iran’s next move and whether documents are actually signed by the weekend.

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