Iran has made key concessions, deal to end war 'fairly soon', says Trump

President Donald Trump claimed Iran has made key concessions in negotiations with the US and that a deal to end the war — which has left thousands dead and rattled energy markets — could be announced “fairly soon.”

The US president said it may be unnecessary to renew a two-week ceasefire with the Islamic Republic before it expires next week, defying expectations that an extension will be needed to allow more time for diplomacy.

“Iran wants to make a deal. They are willing to do things today that they weren’t willing to do two months ago,” Trump said Thursday. “We have a very successful negotiation going on right now. If it happens, it will be announced fairly soon.”

Some leaders in Arab states in the Persian Gulf and Europe expect it will take about six months to agree a peace accord and that the ceasefire should be extended to cover that period, according to officials familiar with the matter, who asked not to be identified discussing private talks. Tehran has yet to comment on the US president’s claims that Iran has dropped its opposition to key US demands, including over its nuclear program.

The two sides might meet for a second round of direct negotiations this weekend, Trump said.

His repeated predictions of a quick end to the war are nonetheless reinforcing optimism in global markets. Wall Street gauges closed at all-time highs, while momentum in Asia faded as investors trimmed positions ahead of the weekend. The MSCI All Country World Index — the broadest gauge of global stocks — slipped 0.1% after a 10-day rally that drove it to a record high on Thursday.

Global benchmark Brent crude fell 1.3% to $98.10 a barrel. Treasuries and a gauge of the dollar were little changed in a cautious end to the week.

Israel and Lebanon agreed to a 10-day ceasefire starting in the early hours of Friday in the West Asia. Israeli Prime Minister Benjamin Netanyahu confirmed the truce, calling it a step toward a broader peace agreement, and Trump said US officials would work with both sides to secure a lasting deal.

Israel has been fighting against Iran-backed Hezbollah militant group in southern Lebanon, with the campaign threatening to derail the separate ceasefire with Iran.

While Trump’s announcement made no mention of Hezbollah, the group appeared to be abiding by the deal to pause hostilities.

Trump said he spoke with his Lebanese counterpart, Joseph Aoun, and Netanyahu before declaring the ceasefire. In a subsequent social media post, Trump said he would invite both leaders to the White House for talks. He later said that visit could take place within a week.

The war brought traffic through the Strait of Hormuz, where a fifth of the world’s oil and liquefied natural gas flowed before the conflict, to a near standstill. The disruption is causing energy costs to remain elevated and stoking fears of a global slowdown and inflation crisis.

Trump sought to ease voter concerns about rising living costs and energy prices at a rally that was held Thursday to highlight his economic achievements ahead of November’s midterm elections. Polls show a majority of Americans disapprove of the president’s handling of the conflict and blame him for rising gasoline prices.

Real-world oil prices remain well above futures as near-term supplies are scarce. Dated Brent, the world’s most important gauge of physical prices, is trading around $116 a barrel.

That’s primarily down to the near closure of Hormuz, where the US is now instituting a full blockade to prevent Iranian oil from reaching global markets.

Some Gulf Arab and European leaders want the waterway reopened immediately and warn of a global food crisis if it remains shut beyond next month. Control over Hormuz remains contentious amid the US naval blockade and Iran’s demands to charge ships for transit even after the war ends.

The UK and France will host a summit with about 40 nations to discuss a multinational naval force to secure Hormuz, though deployment remains unlikely until a broader agreement is reached.

US Defense Secretary Pete Hegseth said American forces are ready to resume combat “at the push of a button,” while Iran warned a prolonged blockade could breach the ceasefire.

Pakistan’s army chief, Asim Munir, traveled to Iran this week as his nation mediates between Washington and Tehran. Pakistan hosted high-level talks between US and Iranian officials last weekend — discussions that failed to yield a breakthrough. Munir was greeted by Iran’s Foreign Minister Abbas Araghchi.

Trump said Thursday that he “might” travel to Pakistan if a deal with Iran is clinched.

“They’ve agreed to almost everything,” Trump said. “They got to get to the table with a pen.”

Comments from both Iranian and US officials on Thursday suggest the sides remain far apart on key issues, but the ceasefire with Lebanon could provide fresh momentum. Iran’s Parliament Speaker Mohammad Bagher Ghalibaf, who took part in the Pakistan talks, had earlier said a permanent ceasefire must cover the fighting in Lebanon.