Iran says no final decision made on deal that Trump hopes could be signed soon
US President Donald Trump said the US and Iran could make a peace deal this weekend after he cancelled planned US strikes and talks made progress.
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WASHINGTON: President Donald Trump on Thursday (Jun 11) said the United States and Iran could sign a peace deal as soon as this weekend that would reopen the Strait of Hormuz to shipping, but Iran countered that it had not reached a final decision on an agreement.
The deal, if confirmed, would be the most significant diplomatic breakthrough yet to end the three-month-old war, which has killed thousands and sent global energy prices sharply higher.
Iranian media reported Foreign Ministry spokesperson Esmaeil Baghaei as saying that large parts of the text under negotiation have been finalised but Iran would not compromise on its red lines.
"We have not reached a final conclusion on this matter," he said. "This is a very important issue that is currently being reviewed by the relevant decision-making bodies."
Trump, meanwhile, told reporters at the White House: "We just made a great settlement of the war with Iran."
"The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe," Trump said, adding Vice President JD Vance could sign for the United States.
When asked if Iran's Supreme Leader Ayatollah Mojtaba Khamenei has approved the deal, Trump said: "I understand the answer is yes."
Trump's announcement came after he called off planned military strikes on Iran, citing progress in talks. US stocks rose and oil prices fell on the news.
Since mid-March, Trump has repeatedly claimed that a deal with Iran to end the war is close. The two sides have traded strikes throughout the week, straining a ceasefire announced in April.
"It's a very strong memorandum of understanding that is a little conceptual," Trump told reporters.
Trump has repeatedly said that any peace deal must ensure Iran cannot develop a nuclear weapon. Iran denies it is seeking such a weapon.
Iran's demands include the lifting of international sanctions, the release of billions of dollars in frozen assets and recognition of its control of the Strait of Hormuz.
"The big thing is there will be no nuclear weapons in Iran. That means not developed and not purchased," Trump later said during a campaign event held by telephone.
TIT-FOR-TAT STRIKES
The war has killed thousands of people, mainly in Iran and Lebanon, and hit the world economy by pushing up energy prices since the US and Israel launched airstrikes on Iran on Feb 28.
In recent days, the conflict has intensified despite a tenuous ceasefire that took effect in early April.
After a US Apache helicopter was downed, Trump this week ordered new strikes around the Strait of Hormuz over two days.
At the same time, Iran launched missile and drone attacks on US bases in the region.
Bahrain's interior ministry said on Thursday an 11-year-old girl suffered minor injuries and homes were damaged after debris fell from Iranian drones that were intercepted and destroyed.
Trump had said earlier on Thursday that the United States would hit Iran "very hard tonight" and wanted eventually to take Iran's oil infrastructure hub Kharg Island.
The island handles 90 per cent of Iran's oil exports and seizing it would give the United States the ability to severely disrupt Iran's energy trade, placing enormous pressure on Tehran's economy.
Iranian state media said early on Friday that the country's forces prevented a tanker from transiting the Strait of Hormuz without coordination.
One-fifth of the world's energy shipments normally travel through the narrow waterway, but it has been largely shut since the war began.
DOMESTIC PRESSURES
The conflict has become a political headache for the White House, with polls showing Trump's approval ratings sinking amid voter anger over high gasoline prices.
Some Republicans have openly worried that the war's unpopularity could cost them control of Congress in November's midterm elections.
But Trump must also assuage potential critics within his Republican Party that any agreement closes Tehran's path to developing a nuclear weapon. Opposition from Iran hawks helped derail a previous effort to secure a deal to open the strait.
How the deal is received in the Middle East will also be crucial.
Trump said on social media that the agreement had been approved by other countries in the region including Israel, Saudi Arabia, Qatar and the United Arab Emirates.
Prime Minister Benjamin Netanyahu's office said in a statement released after the Israeli leader and Trump spoke that Israel was not a party to the memorandum of understanding with Iran.
Netanyahu expressed his appreciation for Trump's commitment to securing a deal that includes removing enriched material, dismantling enrichment infrastructure, limiting missile output and ending support for regional proxies, according to the readout.
Tehran had also been demanding an end to Israeli attacks in Lebanon, where fighting has continued in a parallel war between Israel and Iran-backed Hezbollah militants.
Trump told reporters that he would soon also talk to Turkey's President Tayyip Erdogan.
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