Washington: Amid ongoing diplomatic efforts to end the months-long U.S.-Iran conflict, President Donald Trump has not yet finalized any comprehensive peace agreement with Iran, despite reports of a tentative framework involving significant economic elements and a possible ceasefire extension.
Negotiators from both sides reached a tentative memorandum of understanding in late May to extend the current ceasefire by 60 days and open discussions on Iran’s nuclear program. However, the deal remains pending President Trump’s final approval, with the White House emphasizing strict conditions. Trump has publicly demanded that Iran commit to never developing a nuclear weapon, immediately reopen the Strait of Hormuz without tolls or restrictions, and clear mines for unrestricted shipping.
In exchange, the U.S. has signaled willingness to lift its naval blockade on Iranian ports and engage in broader talks on sanctions relief. Reports of a proposed $300 billion international reconstruction or investment fund for Iran have circulated — framed by U.S. officials as an economic mechanism rather than direct “war compensation” or reparations to avoid domestic political backlash. Iranian sources have pushed for substantial financial relief, including access to frozen assets (with some mentions of an initial $12 billion tranche).
As of today, Trump met with senior advisers in the White House Situation Room but deferred a “final determination,” according to administration officials. He has since sent tougher proposed amendments back to Iranian counterparts, signaling that negotiations are continuing but far from concluded.
Key Sticking Points
Strait of Hormuz — Critical for global oil shipments; Iran has leveraged control during the conflict.
Nuclear Program — Trump insists on verifiable limits and dismantling of highly enriched uranium stockpiles.
Economic Terms — Discussions around reconstruction funding and sanctions relief remain sensitive.
Regional Dynamics — Tensions involving Israel, Hezbollah, and other actors complicate a broader end to hostilities.
Iranian officials have expressed skepticism, with some stating that Tehran will not proceed without concrete actions from Washington first. No formal announcement of a war-ending settlement has been made by either side.
President Trump earlier described the agreement as “largely negotiated,” but he has cautioned against rushing and reiterated that he would not accept a “bad deal.” Markets have reacted positively to de-escalation hopes, with oil prices declining amid optimism for reopened shipping lanes.
This developing story comes after a fragile ceasefire took hold in April 2026 following intense fighting. Diplomatic efforts, mediated in part by countries like Oman, Pakistan, and Qatar, continue as both nations weigh the costs of prolonged conflict against the challenges of compromise.
Further updates are expected in the coming days as Trump reviews the latest proposals.