Core Announcement

U.S. President Donald Trump stated that a memorandum of understanding with Iran to halt hostilities could be signed as early as Sunday, while Iranian officials indicated the signing might occur in the coming days.

Proposed Terms

Trump asserted that, once signed, the Strait of Hormuz would be opened to all vessels and that the United States would eventually secure and destroy Iran’s nuclear material. Iranian Foreign Minister Abbas Araghchi clarified that the nuclear issue would be addressed in a second phase of talks. The memorandum is reported to include:

  • Lifting of the U.S. blockade on Iranian ports;
  • Release of frozen Iranian assets;
  • Iran’s request to charge for services provided in the Strait of Hormuz.

The United States, however, maintains that the waterway should be reopened immediately without fees.

Nuclear Program Details

Iran seeks to have its enriched uranium diluted within its own territory, whereas Trump framed the agreement as a guarantee that Tehran will never acquire a nuclear weapon.

Regional Security Developments

Despite the diplomatic overture, violence continued in the region:

  • Israeli airstrikes in Lebanon on Saturday killed at least five people, and Hezbollah reported multiple drone and rocket attacks on Israeli military positions.
  • Israel reiterated it is not a party to the U.S.–Iran negotiations but will preserve freedom of action against perceived threats.
  • In Gaza, Israeli strikes resulted in two fatalities in Khan Younis.

Impact on Energy Markets

The potential deal follows months of fighting that disrupted shipping through the Strait of Hormuz, contributing to higher oil prices. Market indicators showed LCO down 3.37%, CL down 3.23%, and Brent Spot down 2.77%. A reopening of the waterway would be closely monitored by global energy markets given its critical role in oil and gas shipments.

Outlook

Trump described the prospective agreement as a diplomatic breakthrough, while Iranian officials presented it as the first step toward broader negotiations. Further discussions are expected to cover sanctions relief, release of frozen assets, and the future of Iran’s nuclear program.