Trump and Iran trade conflicting claims on peace deal terms as Strait of Hormuz drones are shot down

Trump announces imminent deal, then erupts at Iranian terms

On Thursday evening, President Donald Trump declared that “final points” of a peace agreement with Iran had been approved and he had cancelled planned air strikes. By Friday, however, the president was calling Iranian officials “very dishonest” and accusing them of fabricating terms leaked to the media.

What they said, including their weak and pathetic statement about a deal, has nothing to do with the truth. We are dealing with very dishonest people. You can’t deal with them in good faith. UNBELIEVABLE!

Terms in dispute: nuclear programme, frozen funds, and the Strait

Iranian state media, citing sources close to the negotiating team, described a framework that would provide a permanent and immediate ceasefire on all fronts, including Lebanon, and begin 60 days of talks on nuclear issues and the lifting of sanctions. The reports claimed that Iran would not surrender authority over the Strait of Hormuz and that $24 billion of frozen assets would be released during the final negotiation period. One Iranian agency also reported a demand for at least $300 billion in reconstruction plans.

The US side insists the deal includes dismantling Iran’s nuclear programme, removal of nuclear material, and that no money will be released until Iran meets its obligations. An unnamed senior administration official told AFP that Iran had agreed to “dismantle” its programme and remove enriched uranium.

As far as the text is concerned, I can tell you it is mostly finalised. The problem is that there have been contradictions in the US position and these have caused turbulence in the peace process.

Military friction and drone shoot-down

Even as negotiations progress, violence continues in the Strait of Hormuz. Overnight on Thursday, US forces shot down two Iranian one-way attack drones targeting commercial vessels, according to a US defence official. Traffic through the strait continues, but the attacks underscore the fragility of any diplomatic progress. Trump called the attacks “totally unacceptable” and warned Iran to “get their act together, and FAST!”

Pakistan’s mediation and the path to signing

Pakistani Prime Minister Shehbaz Sharif confirmed that the parties had reached agreement on the final text. Pakistan has mediated the talks, which focused on full reopening of the Strait of Hormuz and a solution for Iran’s highly enriched uranium – either removal from the country or dilution.

We can confirm that an agreement on the final text of the peace accord has been reached, and Pakistan is currently working with both sides to finalise the next steps. Peace has never been closer.

A possible signing ceremony is reported for Sunday, which is Trump’s 80th birthday, in Geneva. Vice President JD Vance would attend; the US president said he would not be present. Israeli Prime Minister Benjamin Netanyahu has said Israel will not be party to the memorandum, amid tensions over operations in Lebanon.

From war to tentative truce

The US-Israeli bombing campaign began in February, leading Iran to close the Strait of Hormuz. Months of indirect talks followed, with Pakistan as mediator. On June 11, Trump announced the deal’s final points and cancelled air strikes. The next day, conflicting versions emerged and US forces engaged Iranian drones. Sunday could see a signing ceremony.

Markets bet on peace

Oil prices plunged to their lowest level since the US-Israeli bombing campaign began in February, as traders priced in the possibility of the Strait of Hormuz reopening. Iranian media said the draft accord includes lifting sanctions on Iranian petroleum exports, which could further pressure prices.