Iran–US Peace Deal "Largely Negotiated": Strait of Hormuz to Reopen — What the 2-Phase Agreement Means for Oil Prices

Advertisement
Breaking Sunday, May 24, 2026 · Live Updates EarthNews247
Iran — United States War & Peace Talks

Iran–US Peace Deal "Largely Negotiated" — Strait of Hormuz Set to Reopen as Rubio Hints Deal Within Hours

Trump posts on Truth Social that final details are being announced "shortly." Secretary Rubio in New Delhi confirms "significant progress." Iran disputes key terms — but both sides signal a deal is close.

By EarthNews247 Staff | May 24, 2026 · 8:00 AM EDT | 6 min read
85
Days of War
60
Day Ceasefire Ext.
2
Phase Deal Plan
Hormuz Reopening
Key Points
  • Trump says Iran peace deal is "largely negotiated" and Strait of Hormuz will be opened.
  • Rubio: "Significant progress" made — hints announcement possible within hours.
  • Deal expected in two phases — Hormuz first, nuclear talks second.
  • Iran disputes Trump's framing — insists it retains management of the Strait.
  • Pakistan, Qatar, Oman credited as key mediators in brokering the deal.

WASHINGTON / NEW DELHI — In a rapid diplomatic development that could end nearly three months of war, President Donald Trump declared Saturday that a peace agreement between the United States and Iran has been "largely negotiated," with the reopening of the vital Strait of Hormuz at the center of the emerging deal.

Trump posted on Truth Social that "final aspects and details" of the deal would be announced "shortly," after speaking by phone with leaders from Saudi Arabia, the UAE, Qatar, Pakistan, Turkey, Egypt, Jordan, Bahrain, and Israel. It marks the most concrete signal yet that the fragile two-month ceasefire — which began in late March — could be formalized into a lasting agreement.

"Some progress has been made — significant progress, although not final progress. I do think perhaps there is the possibility that in the next few hours the world will get some good news."

— Secretary of State Marco Rubio, speaking in New Delhi · May 24, 2026

Secretary of State Marco Rubio, currently on an official visit to India, amplified the optimism but stopped short of declaring a done deal. Speaking to reporters in New Delhi, Rubio reiterated the US's core demands: Iran must never obtain a nuclear weapon, the Strait of Hormuz must be opened without tolls, and Iran must hand over its stockpile of highly enriched uranium.

The Two-Phase Deal Explained

According to a US official who spoke to multiple outlets, the emerging agreement is structured in two distinct phases designed to create immediate relief while preserving leverage for harder negotiations ahead.

Phase 1 — Immediate
  • 60-day ceasefire extension
  • Strait of Hormuz reopened — shipping returns to pre-war levels
  • Iran allowed to sell oil freely
  • Partial sanctions relief — "relief for performance"
Phase 2 — Negotiations
  • Iran's nuclear enrichment suspended
  • Highly enriched uranium stockpile removed
  • Formal end-of-war declaration
  • Permanent sanctions lifted incrementally

Iran Pushes Back on Key Terms

Even as optimism grew in Washington, Iran moved swiftly to dispute Trump's characterization of the deal. Iran's semi-official Fars News Agency — closely aligned with the Islamic Revolutionary Guard Corps — said that Trump's claim the Hormuz would be "opened" was "inconsistent with reality."

According to Fars, the agreement provides for Iran to continue to manage the waterway, with the number of passing ships returned to pre-war levels — but stopping well short of "free passage" under pre-war conditions. Iran's Foreign Ministry spokesman described the draft as a "framework agreement" with key issues still unresolved.

⚠️
Senior Israeli Official Warning

A senior Israeli official said the emerging agreement is "bad" because it signals to Iran that the Strait of Hormuz is a weapon "no less effective than a nuclear one." Israel was kept informed of negotiations but was not a direct party to the talks.

Pakistan's Role as Peacemaker

Pakistan — whose Army Chief Field Marshal Asim Munir met Iranian President Pezeshkian in Tehran on May 23 — played a pivotal behind-the-scenes role in moving talks forward. Pakistani Foreign Minister Ishaq Dar said the negotiations offer "grounds for optimism that a positive and durable outcome is within reach."

Oman and Qatar also acted as conduits, with Iran's Tasnim News Agency reporting that under the potential agreement, Strait of Hormuz passage would be jointly managed as an "Iranian-Omani issue" negotiated with Muscat. Iran also insisted that any deal must include the release of at least part of its frozen foreign currency reserves as a first-phase condition.

Timeline: Road to This Deal

Feb 28, 2026
US & Israel launch war on Iran
Following failed nuclear ultimatums, US-Israeli strikes target Iran's air force, navy, and missile launchers.
Late March 2026
Fragile ceasefire takes hold
Iran shuts the Strait of Hormuz. Global oil prices spike. Oman and Qatar begin mediating back-channel talks.
May 23, 2026
Pakistan's Munir meets Pezeshkian in Tehran
Pakistan Army Chief holds key diplomatic meeting in Tehran. Trump calls leaders across the Gulf and Middle East.
May 24, 2026 — Today
Deal declared "largely negotiated"
Trump posts on Truth Social. Rubio confirms progress in New Delhi. Both sides signal announcement possible today.

Your Questions Answered

What does "largely negotiated" actually mean?
It means the core framework has been agreed upon between the parties, but exact wording, sequencing, and verification mechanisms are still being finalized. Historically, Trump has made similar announcements that later fell apart — but this time both sides publicly confirm they are "getting closer."
Will the Strait of Hormuz actually reopen?
Under Phase 1, shipping is expected to return to pre-war volume. However, Iran insists it retains management of the waterway — meaning it will allow ships through, but not under "free passage" as Trump claims. Whether Trump considers this "opened" will shape how the deal is sold domestically.
What happens to Iran's nuclear program?
Phase 2 will require Iran to pause new uranium enrichment and remove its stockpile of highly enriched uranium. Iran has committed verbally not to pursue nuclear weapons, but formal verification and the fate of existing enriched uranium remain the hardest issues to resolve.
Could the deal still fall apart?
Yes. Trump has announced Iran deals before that collapsed. Iran's IRGC-aligned media are already pushing back on key terms. The main sticking points are: (1) who controls the Strait of Hormuz, (2) when frozen Iranian funds are released, and (3) the pace of nuclear concessions. The next 24–48 hours are critical.
© 2026 EarthNews247 · All rights reserved
Iran Deal 2026 Strait of Hormuz Trump Iran Middle East News
Staff Correspondent — World News 24H
Award-winning journalist covering international affairs, geopolitics, and global events. Based in our international bureau with over a decade of experience in world news reporting.
Advertisement