U.S. President Donald Trump said on Wednesday that a deal with Iran was “very possible,” raising hopes for a diplomatic breakthrough even as he warned that military action would resume if the current talks collapse. In a post on Truth Social, Trump said the war could end if Iran agrees to terms already outlined by Washington, but added that if negotiations fail, bombing would restart “at a much higher level and intensity.” He later told reporters at the White House that the two sides had held “very good talks” over the previous 24 hours.
The renewed optimism comes after Trump paused a U.S. military effort aimed at reopening the Strait of Hormuz, the critical oil chokepoint through which about a fifth of global crude supplies normally pass. Reuters reported that the administration put that operation on hold for a short period to see whether an agreement with Tehran could be finalized.
Iran, however, has yet to formally accept the latest U.S. proposal. Iranian foreign ministry spokesman Esmaeil Baqaei said the plan was still under review and that Tehran would communicate its position to mediator Pakistan after finalizing its assessment. At the same time, senior Iranian figures continued to accuse Washington of using naval pressure and economic coercion to force the Islamic Republic into submission.
According to Reuters, U.S. and Iranian negotiators are now said to be closing in on a one-page memorandum of understanding that could formally end hostilities and open the way for wider nuclear talks. Still, major disputes remain, including the future of Iran’s nuclear programme and the status of shipping restrictions in the Gulf.
Financial markets reacted positively to signs of possible progress, but the wider standoff remains fragile, with both sides still testing each other even as diplomacy inches forward.
