Trump Withholds Decision on Iran Deal as Hormuz and Nuclear Issues Remain Unresolved

The Situation Room Meeting

President Donald Trump convened his top national security advisors in the White House Situation Room for over two hours on May 29, 2026, to decide on a proposed memorandum of understanding with Iran. Despite expectations of a final decision, the meeting concluded without one. A senior administration official told the New York Times that while the administration believes it is close to a deal, several issues remain under discussion, including the release of frozen Iranian funds. Alayana Treene, a CNN White House correspondent, reported on X, citing a presidential official, that Trump will only accept an agreement that benefits America and respects his red lines.

President Trump will only strike a deal if it is advantageous for America and respects his red lines. Iran can never possess a nuclear weapon.

The Proposed Agreement

According to Axios, U.S. and Iranian negotiators reached a memorandum of understanding earlier in the week. The deal would extend the ceasefire for 60 days, during which negotiations on Iran's nuclear program would commence. Key provisions include Iran's commitment not to pursue nuclear weapons, the removal of all naval mines from the Strait of Hormuz within 30 days, and the restoration of unlimited maritime transit without tolls. In exchange, the U.S. naval blockade of Iranian ports would be lifted proportionally as commercial navigation is restored. Vice President JD Vance acknowledged progress on extending the truce but said Trump is not yet ready to approve it.

We are discussing a couple of points regarding the wording of the text. We have made a lot of progress in that regard.

The Strait of Hormuz Standoff

Control of the Strait of Hormuz remains a central flashpoint. Trump posted on Truth Social that U.S. ships enforcing the blockade "can begin the procedure to return home." However, Tehran immediately pushed back. Ebrahim Rezaei, spokesman for the Iranian Parliament's National Security Commission, declared that Iran's management of the Strait is internationally consolidated, claiming countries now request authorization and pay fees to transit under the guidance of the Revolutionary Guards Navy. Rezaei taunted Trump, saying he periodically sends his army to open the Strait only to be defeated and retreat.

From time to time he sends his army to open the strait. They arrive, are defeated, and go back.

Nuclear Program Complications

The fate of Iran's highly enriched uranium is a major sticking point. Trump insists the nuclear material must be destroyed, suggesting it could be done on-site in coordination with Tehran and the International Atomic Energy Agency. Ebrahim Azizi, chairman of the Iranian Parliament's National Security and Foreign Policy Committee, stated the uranium will not be moved to third countries. IAEA Director Rafael Grossi noted that Kazakhstan has offered to host the stockpiles. The 440 kilograms of highly enriched uranium represent just one challenge; Trump and Israeli Prime Minister Benjamin Netanyahu demand the end of any Iranian capability to produce a nuclear bomb, which could require dismantling the entire program.

Diplomatic Efforts and Market Reaction

Pakistan continues to play a mediating role, with Foreign Minister Ishaq Dar flying to Washington to meet Secretary of State Marco Rubio ahead of the Situation Room meeting. Rubio thanked Dar for his efforts toward a solution. Despite the uncertainty, financial markets rallied on optimism for a deal, while oil prices fell to around $90 per barrel. The conflict, which began on February 28, has seen repeated cross-border attacks even during the ceasefire that took effect in early April. The Fars news agency, close to the Revolutionary Guards, dismissed Trump's version of the agreement as "a mix of truth and lies."