The United States and Iran are reportedly nearing a peace agreement that could bring an end to the ongoing conflict and lead to the reopening of the strategic Strait of Hormuz, a critical chokepoint for global oil shipments. However, U.S. President Donald Trump and his administration have urged caution to ensure the deal is carefully negotiated, with Trump warning his representatives not to rush and emphasizing that "both sides must take their time and get it right."

On May 24, Trump announced on his social media platform Truth Social that the agreement was "largely negotiated" and that "final aspects and details" were being discussed, adding that an announcement would be made "shortly." Yet, subsequent messages from the President urged patience, stressing no mistakes can be made. Secretary of State Marco Rubio, speaking in New Delhi, expressed optimism for progress, suggesting that "in the next few hours the world will get some good news," though he clarified that significant but not final progress had been achieved.

Key elements of the proposed deal reportedly include extending the fragile ceasefire by 60 days, during which the Strait of Hormuz would gradually reopen to pre-war levels without tolls on shipping. Iran has agreed, in principle, to dispose of its stockpile of highly enriched uranium—estimated at around 440 kilograms enriched to 60% by the International Atomic Energy Agency—though details about whether the material will be handed over to the U.S. remain under negotiation. The agreement would likely see phased sanctions relief, including the unfreezing of tens of billions of dollars in Iranian assets held overseas, contingent on Tehran's compliance.

The U.S. blockade on Iranian ports would remain in effect until the agreement is formally signed and certified, with Washington committing to lift it once the deal is finalized. Iran’s ability to disrupt shipping in the strait has contributed to global energy supply tensions, exacerbating inflation and supply chain challenges worldwide.

Iranian officials have offered mixed signals: President Masoud Pezeshkian stated readiness to assure the world that Iran is not seeking nuclear weapons but emphasized that the country's "honour and dignity" must not be compromised. Meanwhile, state-affiliated news agencies indicated unresolved issues remain, including Iran’s control over the strait's administration, with one source asserting that Tehran would maintain "monopoly" over passage regulations.

The draft agreement reportedly also encompasses a cessation of hostilities between Israel and Hezbollah in Lebanon, raising concerns in Israel. Israeli Prime Minister Benjamin Netanyahu, who initially advocated for the conflict, conveyed to Trump that any final deal must eliminate the nuclear threat while preserving Israel’s right to defend itself. Despite a ceasefire, Israeli strikes in Lebanon continued as the terms were being negotiated.

The proposed deal has drawn criticism from some Republican figures, including Senators Ted Cruz and Lindsey Graham, and former Secretary of State Mike Pompeo, who argue it may leave the U.S. in a weaker position than before the conflict began. Trump, however, defended the negotiations, positioning his approach as significantly tougher and contrasting it with the 2015 nuclear agreement signed under former President Barack Obama, which he said provided Iran with cash and a path to nuclear weapons.

International reactions have been cautiously positive. UK Prime Minister Sir Keir Starmer and European Commission President Ursula von der Leyen expressed hope that any agreement would ensure the Strait of Hormuz’s unconditional reopening and prevent Iran from developing nuclear weapons.

The United Kingdom has dispatched naval assets, including the destroyer HMS Dragon and support vessels equipped for mine clearance operations, to the Middle East in preparation for a possible international mission to secure shipping lanes if the peace deal proceeds. However, British officials have downplayed the likelihood of peacekeepers being deployed on the ground at present.

While momentum toward a peace deal appears significant, officials caution that the process remains complex, with final ratifications by Iran’s Supreme National Security Council and Supreme Leader Mojtaba Khamenei still pending. The possibility of protracted negotiations remains, and mixed messaging from both sides continues to generate uncertainty about the timeline and terms of a comprehensive settlement.