U.S.-Iran Deal Framework Nears Finalization, Strait of Hormuz to Reopen

TLDR

• President Trump announced a draft framework for end-of-war talks with Iran is near finalization.
• The deal would reopen the Strait of Hormuz, through which one-fifth of global oil flows.
• Parties have 30 to 60 days to reach a final agreement on remaining issues.
• Iran’s nuclear program remains the biggest unresolved sticking point.
• Oil prices had already started to fall on earlier reports of a potential deal.

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President Trump said Saturday that a framework agreement with Iran is nearly finalized and will set the stage for formal peace talks. The deal would reopen the Strait of Hormuz, the waterway through which roughly one-fifth of the world’s oil supply passes.

🚨 “An Agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries, as listed…” – President Donald J. Trump pic.twitter.com/Z49bOkkUoh

— The White House (@WhiteHouse) May 23, 2026

Trump made the announcement on Truth Social, saying the agreement had been “largely negotiated” between the United States, Iran, and several mediating nations. He said the full terms would be revealed shortly.

The Strait of Hormuz has been closed since Iran shut it down following U.S. and Israeli airstrikes that killed longtime Iranian leader Ali Khamenei in late February. The closure has disrupted global oil markets and contributed to a broader economic crisis.

Brent crude futures closed Friday just above $100 per barrel, while U.S. benchmark WTI crude ended the week above $96. Oil prices had already dipped Thursday after early reports of a potential ceasefire deal began circulating.

The Path to a Deal

Trump spoke Saturday with leaders of Saudi Arabia, the UAE, Qatar, Pakistan, Turkey, Egypt, Jordan, and Bahrain before also speaking with Israeli Prime Minister Benjamin Netanyahu, who has historically opposed diplomatic engagement with Iran.

Iran’s foreign ministry spokesman Esmail Baghaei confirmed the two sides were in the “final stage” of drafting a memorandum of understanding. He said the 30-to-60-day timeline for a final deal was reasonable.

Under the proposed framework, Iran would temporarily reopen the Strait of Hormuz and waive transit fees while negotiations continue. In return, the U.S. would lift its naval blockade on Iranian ports. Iran is also seeking the swift unfreezing of approximately $100 billion in assets currently held abroad under U.S. sanctions.

Pakistan and several Arab nations have been pushing for a six-week extension of the current ceasefire to allow more time for talks.

Nuclear Issues Remain Unresolved

The framework does not resolve the central dispute over Iran’s nuclear program. Washington wants a final deal that includes a 20-year suspension of Iran’s nuclear activities and a commitment to hand over its stockpile of near weapons-grade enriched uranium to the United States.

Iran has rejected both conditions. Supreme Leader Mojtaba Khamenei stated publicly this week that no enriched uranium can leave the country. Iranian officials have said nuclear issues should be addressed at a later stage, alongside broader sanctions relief.

Baghaei told state media: “At this stage, our entire focus is on ending the war.”

Other unresolved issues include Iran’s ballistic missile program and its support for regional militant groups — both priorities for Israel and Washington’s Gulf partners.

Iran’s semiofficial Fars News pushed back on Trump’s framing, saying any deal would leave Iran in control of passage routes, timing, and transit permits through the Strait of Hormuz.

The war is not officially over. U.S. troops and military assets remain stationed in Israel, and the conflict could resume if negotiations collapse.

Some Republican senators, including Lindsey Graham, have publicly urged Trump to resume strikes rather than make diplomatic concessions.

The framework marks the latest development in a months-long back-and-forth between Washington and Tehran that has swung between near-deals and threats of resumed military action.