Trump says Iran peace deal could be signed ‘this week’ despite Strait of Hormuz tensions

President Donald Trump’s recent claims regarding the months-long US-Iran conflict has sparked hope for peace in the Middle East.

Speaking to the reporters on Thursday at the White House, President Trump hailed “great settlement” of the war with Iran which could soon be materialized in the form of a peace deal with Tehran.

Trump asserted that the peace deal “could be signed soon, very soon, maybe over the weekend in Europe,” adding that Vice President JD Vance would attend the highly-anticipated deal signing.

Although tensions surrounding the strategically important Strait of Hormuz still persist, Trump claimed that the deal would lead to the official opening of Hormuz.

Iranian officials have responded to these claims made by Trump. According to Foreign Ministry spokesperson Esmaeil Baghaei, “large parts of the agreement have been finalised, but Iran would not compromise on its red lines.”

“We have not reached a conclusion on this matter. This is a very important issue that is currently being reviewed by the relevant decision-making bodies,” he added.

Should it be finalized, the deal represents the most significant diplomatic progress achieved thus far in the three-month-old war. The conflict has resulted in thousands of casualties and driven global energy costs up drastically following Iran's near-total closure of the Strait of Hormuz to maritime traffic.

The deal with Iran has been stalled for many weeks as both countries refused to accept the disputable clauses. According to Trump, Iran would never possess and purchase nuclear weapons and curtail its nuclear enrichment.

Iran's demands include the release of billions of dollars in frozen assets, the lifting of international sanctions, and recognition of its control of the Strait of Hormuz.

However, the announcement related to finalization of the deal has brought new hopes for energy and stock markets. Asian stocks joined a strong global rally and oil prices saw a sharp decline.