Iran’s foreign ministry spokesperson Esmail Baghaei stated that reports of a settlement were “speculative” and “nothing has been finalised,” according to BBC. The comments came after President Trump said he was canceling planned strikes on Iran because negotiators had “just made a great settlement.”

Trump’s Shifting Stance on Iran

Trump initially threatened to strike Iran “very hard” but later reversed course, stating the agreement was “subject to finalisation of documents” over the next few days. He added that a signing ceremony would likely take place in Europe. However, Iran’s foreign ministry spokesperson said the US had made “excessive demands” and added “new requests” to the agreement.

Escalation and Retaliation

On 28 February, the US and Israel launched wide-ranging strikes on Iran, prompting Tehran to respond by attacking Israel and US-allied states in the Gulf. Iran also effectively closed the Strait of Hormuz — a critical shipping route for global oil and liquefied natural gas. Despite a ceasefire agreement in April, the US and Iran have exchanged intermittent fire, including two rounds of tit-for-tat strikes this week.

In the wake of Trump’s latest comments, the price of Brent crude plummeted to about $89 a barrel, down 4.4% on the day. Trump told reporters the deal would ensure Iran “will never have a nuclear weapon,” which he said was the “whole purpose” of the negotiations. He also claimed the Strait of Hormuz would open “as soon as we have it signed.”

International Reactions and Concerns

Trump said he had spoken to leaders in the region, including Gulf allies and Israeli Prime Minister Benjamin Netanyahu, adding: “The whole Middle East is very happy.” Israel’s prime minister’s office confirmed a conversation took place and stated Israel “is not a party to the memorandum of understanding.” Netanyahu expressed appreciation for Trump’s commitment to work towards a final agreement that included “the removal of enriched material, the dismantling of enrichment infrastructure, limits on missile production, and the cessation of Iran’s support for its terrorist proxies in the region.”

Iran’s top negotiator Mohammad Bagher Ghalibaf warned that “wrong strategies and impulsive decisions will… create an endless quagmire that you will be stuck in for years.” In response, Iran’s Islamic Major Guard Corps (IRGC) launched strikes against American bases in Bahrain, Kuwait, and Jordan. An 11-year-old girl in Bahrain was injured by an Iranian drone attack, local authorities said on Thursday, adding that homes and cars had been damaged.

Iran’s military also threatened a retaliation “more severe than before” if there were further attacks. Jordan said it shot down about 20 Iranian missiles, and Kuwait’s military said it engaged with “hostile aerial targets.” Meanwhile, India summoned a senior American diplomat after confirming that three Indian sailors were killed in a US strike on a ship in the Gulf of Oman, which it accused of violating its blockade on Iranian ports. Twenty-one crew were rescued.

US forces have fired on nine vessels so far, including three this week. The blockade aims to stop ships from entering and leaving Iranian ports to restrict Tehran’s ability to profit from oil exports. The latest strikes prompted calls for de-escalation. A spokesperson for the UN Secretary-General António Guterres said on Thursday he was “deeply concerned by the continuing escalation in the Middle East.” He urged the parties to return to the full implementation of the ceasefire and avoid any further deterioration.

Pakistan, Russia, China, Turkey, India, and Saudi Arabia also called for de-escalation. The White House has been pushing for a quick resolution to talks with Iran aimed at ending the conflict, as well as addressing issues like security in the Strait of Hormuz and Tehran’s nuclear ambitions. On 20 April, Trump said a deal with Iran would be made “relatively quickly,” and both he and senior administration figures suggested negotiations were progressing in the weeks that followed. But on 27 May, after reports the two sides were close to an agreement, Trump said he was “not satisfied” with its terms. Talks have continued since.