Trump and Iran Negotiate Peace Deal Amid Hormuz Clashes

The United States and Iran are attempting to finalize a peace agreement, known as the Islamabad Memorandum of Understanding, to end a conflict that began on February 28, 2026. Donald Trump announced a settlement is in final shape and may be signed in Geneva or via digital means as early as June 14, 2026. The proposed framework involves a 60-day ceasefire on all fronts, including Lebanon, and the reopening of the Strait of Hormuz in exchange for a phased lifting of a U.S. naval blockade and limited sanctions relief.

Negotiations remain volatile, with major discrepancies regarding the release of frozen Iranian assets—estimated between $6 billion and $24 billion—and the future of Iran's nuclear program. While Trump asserts the deal ensures Iran will never possess nuclear weapons, Iranian officials, including Foreign Minister Abbas Araghchi, insist on the right to enrich uranium and maintain strategic control over the Strait of Hormuz, including the potential for transit fees.

Despite the diplomatic efforts, military hostilities persist. U.S. Central Command intercepted multiple Iranian attack drones targeting commercial ships in the Strait of Hormuz on June 12 and 13. Tensions further escalated after U.S. forces struck three tankers in the Gulf of Oman, killing three Indian seafarers; Trump initially blamed Iran for these attacks before U.S. military officials confirmed the strikes were American. Israel, while not a party to the memorandum, maintains that any final accord must dismantle Iran's nuclear and missile infrastructure.