Trump halts Iran strikes as Hormuz deal nears after 5-month war

President Donald Trump said the US will pause strikes on Iran as negotiators near a deal to reopen the Strait of Hormuz and end the nuclear standoff.

The US will hold off on new strikes against Iran after negotiators reached the parameters of a deal to reopen the Strait of Hormuz and end Tehran's nuclear threat, President Donald Trump said Saturday.

"We have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that the perimeters of a deal has been agreed to," Trump said on Truth Social.

The emerging agreement would include the "Immediate, Complete, and Total OPENING OF THE HORMUZ STRAIT" and an end to Iran's nuclear threat, Trump said, adding that Israel joins the US in the commitment. The president said the US was "locked and loaded" but agreed to cancel attacks "subject to being able to rapidly make a DEAL," with negotiations scheduled for Monday.

The strait carries about one-fifth of global oil shipments, so a durable reopening would ease the crude-price premium built up over the five-month war, while a collapse in talks could push prices higher and reignite attacks on Gulf energy infrastructure.

Saudi Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, spoke with Trump by phone Saturday and raised concerns that Tehran could retaliate against energy infrastructure in the Gulf, according to a person familiar with the call. The crown prince sought clarity on what new action Washington was weighing, the person said, speaking on condition of anonymity. A White House official confirmed the leaders spoke but offered no detail.

Iran's acting defense minister, Majid Ibn al-Reza, dismissed the US announcement as "psychological and cognitive warfare," saying on X that the threat of further strikes would be taken "as the basis for increasing readiness, strengthening deterrence, and enhancing our own power." Senator John Kennedy, a Louisiana Republican, told NBC's "Meet the Press" that Trump should not trust Iran's word, noting the June memorandum of understanding that collapsed within weeks.

Hormuz Reopening Carries the Oil Risk Premium

The Strait of Hormuz handles roughly one-fifth of the world's oil trade, making unrestricted navigation the linchpin of any settlement. Iran has repeatedly attacked vessels transiting the waterway without its authorization, and on Saturday Kuwait's military said its air defenses were engaging drone attacks that hit "a number of vital facilities," while the British Navy reported a tanker struck in the strait off Oman's coast. The State Department issued fresh security alerts for Americans in 10 countries across the region, urging them to prepare for flight cancellations and airspace closures.

The June memorandum of understanding, signed after a brief truce, unraveled in early July when Trump declared the ceasefire "over" and the two sides resumed strikes. That precedent shows the fragility of the current window: crude prices have climbed through the conflict, and traders are watching whether Monday's talks produce a verifiable reopening or another breakdown.

What a Deal Would Mean for Markets

A durable agreement would remove the geopolitical premium that has pushed oil prices higher and lifted gas prices in the US, while restoring confidence in shipping and insurance markets that have repriced Gulf routes. Failure, by contrast, would likely trigger another round of strikes — Trump said Friday the US would hit Iran "very hard" — and could draw Saudi Arabia and other Gulf producers into a wider confrontation that threatens a fifth of global supply.

The stakes extend beyond crude. Iranian-backed Houthi rebels have forced eight Saudi ships to reroute from the Bab el-Mandeb strait after announcing a blockade, adding days to voyages around Africa and raising freight costs. In Gaza, Israel struck Hamas targets after the group agreed to disarm, a separate track that could ease pressure on regional shipping lanes if it holds.

The coming days are decisive. If negotiators convert the stated parameters into an enforceable deal, the region could move toward de-escalation after five months of conflict. If talks collapse, military operations could resume quickly, returning one of the world's most volatile regions to heightened confrontation.

This article is for informational purposes only and does not constitute investment advice.