Trump Warns Iran of Intensified Strikes if Peace Deal Collapses
President Donald Trump threatened Iran with significantly more intense military strikes if Tehran refuses to sign an Iran peace deal, CNBC reported Wednesday. The warning came as financial markets moved sharply on news that a formal agreement could take shape within days.
Iran Peace Deal Talks Enter Critical Window
Trump posted the warning on Truth Social, stating that a failure to agree would result in bombing “at a much higher level and intensity than before.” He added that a successful deal would end the two-month conflict and reopen the Strait of Hormuz to international shipping traffic. Washington is reportedly expecting Tehran to respond to several key points within 48 hours, with officials hoping those responses form the basis of a one-page preliminary memo. A Pakistani government official also told a regional broadcaster that a formal peace proposal was “very likely in the coming days.” Iran’s Foreign Ministry confirmed the country is currently reviewing a 14-article American proposal.
What the Proposed Agreement Would Include
Axios, whose reporting helped trigger Wednesday’s market moves, outlined the deal’s core terms. Under the framework, Iran would commit to a moratorium on nuclear enrichment. In exchange, the United States would lift economic sanctions currently targeting Tehran. Both sides would also step back from controlling ship movements through the Strait of Hormuz, the vital waterway connecting the Persian Gulf to global oil markets. Many of the specific terms remain contingent on a final agreement being formally concluded by both negotiating delegations.
A Fragile Ceasefire Has Held Since April
The two nations have operated under a ceasefire since April 7, though the pause in hostilities has repeatedly appeared close to breaking. Earlier this week, Iranian forces attacked American personnel assisting commercial vessels transiting the Strait. Iran also launched fresh strikes against the United Arab Emirates in the same period. The US military responded by sinking several small Iranian vessels that had attempted to interfere with civilian shipping. Optimism for a resolution returned on Tuesday after Trump paused “Project Freedom,” the US operation guiding commercial ships out of the contested waterway. That pause was explicitly framed as an opportunity for final deal negotiations to conclude.
Markets React as Tensions and Hope Collide
Oil prices fell sharply as prospects of a deal eased supply-disruption fears. US stock futures climbed alongside European equities, and global sovereign bonds also rallied in response to the reports. Analysts noted the market reaction reflected renewed confidence that the Strait could soon return to normal operations, relieving pressure on energy and shipping costs worldwide.
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