Trump Signals Progress on Peace Deal to Reopen Strait of Hormuz

President Donald Trump announced on May 25, 2026, that a peace deal with Iran had been largely negotiated to end a three-month war. The news triggered a global market rally, sending North American stock futures higher and causing the S&P/TSX composite index to hit a record high of 34,846.50. Crude oil prices plunged as investors anticipated the reopening of the Strait of Hormuz and a restoration of oil flows.

While Trump stated negotiations were proceeding nicely, he later cautioned his representatives not to rush into an agreement and warned that fighting would resume without a deal. He maintained that the U.S. naval blockade of Iran remains in force and ruled out Iran possessing nuclear weapons. U.S. Secretary of State Marco Rubio described the diplomacy as a work in progress, noting that a solid proposal is currently on the table.

Potential terms of the agreement include a 60-day ceasefire extension, the disposal of Iran's uranium stockpile, the release of frozen assets, and a 30-day window for Iran to clear mines from the Strait of Hormuz. An Iranian delegation led by Foreign Minister Abbas Araghchi met with officials in Qatar for consultations. While Iran has reached a framework with the U.S., the Iranian government maintains that a final agreement is not imminent due to unresolved issues regarding nuclear commitments and frozen funds.