Trump signals new US-Iran deal to reopen Strait of Hormuz

The United States and Iran are reportedly nearing a single-page memorandum intended to conclude the conflict in the Gulf, according to information from mediator Pakistan and other sources familiar with the ongoing mediation efforts. This development, which emerged on May 6, 2026, follows a social media post by U.S. President Donald Trump that suggested significant progress toward an agreement.

The proposed 14-point memorandum would formally end the war and pave the way for subsequent discussions on crucial matters. These include reopening shipping lanes through the Strait of Hormuz, the removal of U.S. sanctions against Iran, and the implementation of restrictions on Iran's nuclear program. A Pakistani source indicated the imminence of an agreement, stating, "We will close this very soon. We are getting close."

Market Reacts to Potential Accord

News of the potential agreement prompted an immediate reaction in global markets. Oil prices experienced a sharp decline, with benchmark Brent crude futures falling by approximately 11% to around $98 per barrel. Concurrently, global share prices rose, and bond yields decreased. This market movement reflects a positive outlook regarding the potential cessation of disruptions to energy supplies that have been linked to the conflict.

This preliminary deal is expected to initiate a 30-day period of detailed negotiations aimed at forging a comprehensive agreement. Key U.S. demands, such as limitations on Iran's missile program, an end to support for proxy militias, and the management of Iran's existing enriched uranium stockpile, were not explicitly mentioned in the initial reports concerning the memorandum's scope.

Challenges Ahead in Negotiations

The reported proximity to a U.S.-Iran memorandum, signaling a potential end to the Gulf conflict, is likely to usher in a phase of intense diplomatic activity and market adjustments. While the immediate economic impacts, such as falling oil prices and rising equities, suggest optimism for energy stability and reduced geopolitical risk, the subsequent 30-day negotiation period for a comprehensive agreement presents considerable challenges. These challenges are particularly acute concerning Iran's missile program, its support for proxies, and its stockpiles of enriched uranium.