US-Iran Peace Deal Talks Intensify as Trump Issues Escalation Warning
President Donald Trump warned Wednesday that Iran would face significantly heavier military strikes unless it accepts a proposed peace deal, CNBC reported.
Trump posted the threat on Truth Social, stating that if Tehran refused to agree, “the bombing starts” at a far greater intensity than anything seen previously. He simultaneously offered a diplomatic off-ramp. The president said the ongoing war would conclude entirely if Iran accepted the terms, allowing the Strait of Hormuz to reopen freely to all shipping traffic.
Markets React Sharply to Peace Deal Signals
Financial markets moved decisively on the news. Oil prices dropped sharply as traders priced in a potential resolution to the two-month conflict. US stock futures, European equities, and global sovereign bonds all climbed in response.
The moves followed an earlier Axios report indicating Washington and Tehran were nearing a preliminary framework. Washington reportedly expects Iran to respond to several key negotiating points within 48 hours. Those responses would form the basis of a condensed one-page memo outlining the path forward.
What the Proposed Terms Include
The reported framework carries significant concessions from both sides. Iran would commit to a moratorium on nuclear enrichment activity. In exchange, the US would lift existing sanctions against Tehran. Both parties would also relinquish any claims over controlling ship movements through the Strait of Hormuz.
Many terms remain conditional on a final agreement being reached. A spokesperson for Iran’s foreign ministry told CNBC the country was actively “evaluating” a 14-article proposal submitted by Washington. A Pakistani government official separately told media that a formal proposal to end hostilities was “very likely in the coming days.”
A Fragile Ceasefire Has Held Since April
The two countries have maintained a ceasefire since early April, agreed to provide space for diplomatic negotiations. That pause in fighting has repeatedly shown signs of strain. Iran attacked US forces this week who were assisting commercial vessels navigating the Strait. Iran also launched fresh strikes against the UAE during the same period.
The US confirmed it sank six Iranian patrol boats that attempted to obstruct commercial shipping in the waterway. Despite the flare-ups, optimism returned Tuesday when Trump announced he was pausing “Project Freedom,” the US military’s commercial shipping escort operation. He cited “great progress” toward a complete agreement as justification for the pause.
The next 48 hours are being watched closely by diplomats and traders alike.
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