Trump Says US-Iran Peace Deal to Be Signed Sunday as Tehran Casts Doubt on Timing
The White House announced the landmark Islamabad Memorandum of Understanding would be signed within hours — with the Strait of Hormuz to open immediately after. Iran's foreign ministry signaled caution on the schedule.
Trump Confirms Sunday Signing on Truth Social
In a dramatic social media post on Saturday, President Trump declared that a formal peace framework between Washington and Tehran — officially titled the Islamabad Memorandum of Understanding — is "scheduled to get signed tomorrow." He added that the Strait of Hormuz would be reopened "immediately" following the ceremony, a development that would send shockwaves through global energy markets.
"The Deal is scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is OPEN TO ALL," Trump wrote. The president also stated that no money would change hands under the agreement, pushing back against leaked reports suggesting the deal included provisions for an Iranian reconstruction fund.
US officials confirmed to media outlets that the signing would take place virtually due to logistical challenges, with lead mediator Pakistan facilitating final talks between the two sides. Qatari negotiators also flew to Tehran on Sunday morning to help finalize outstanding details, according to a diplomat with knowledge of the negotiations.
Tehran Signals Caution — But Does Not Reject the Deal
Hours before Trump's announcement, Iranian state media reported that Tehran was approaching the agreement with caution, particularly regarding the timing of the signing. Iran's Foreign Minister Abbas Araghchi urged restraint in media reporting, saying in a statement: "The Islamabad Memorandum of Understanding has never been closer. Pending its finalization, the media should refrain from entering speculation about its content."
Crucially, Iran did not walk away from the deal or publicly contradict the core terms. Analysts note that the gap between Washington and Tehran appears to be one of logistics and messaging, rather than a fundamental breakdown in the peace framework. Iran has consistently denied seeking nuclear weapons, even as it enriched uranium to near weapons-grade levels before the conflict.
What Is the Islamabad Memorandum of Understanding?
The Islamabad MOU, brokered with Pakistan serving as lead mediator, is designed to accomplish three immediate objectives: extend the existing ceasefire between US and Iranian forces, lift the naval blockade of the Strait of Hormuz, and launch a structured 60-day negotiation period to address deeper outstanding issues.
Those longer-term issues include Iran's nuclear program and its stockpile of highly enriched uranium — much of which is now believed to be buried under rubble at sites previously bombed during the 12-day military campaign in June 2025. Trump addressed this sensitive topic directly, saying the United States would "go in and get the nuclear dust" at an appropriate future time, working cooperatively with Iran.
The agreement does not, according to officials, fully resolve every US objective — including halting Iran's ballistic missile program or ending its support for regional proxy groups. These items are expected to be on the table during the 60-day follow-up negotiation window.
Key Events Leading to This Moment
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Why the Strait of Hormuz Matters to Americans and the Global Economy
The Strait of Hormuz, a narrow waterway between Iran and Oman, is arguably the single most strategically important chokepoint in the global energy supply chain. Roughly 20% of the world's oil supply passes through the strait, including significant volumes bound for the United States, Canada, and European allies.
The blockade imposed during the military conflict sent oil prices surging and contributed to elevated inflation at gas stations across the United States and Canada. A formal reopening of the strait under a ceasefire framework would be expected to provide immediate relief to energy prices, a key political priority for the White House heading into the next election cycle.
Israel's Position and Netanyahu's Response
Israel has expressed profound objections to the emerging terms of the agreement, particularly any framework that stops short of completely eliminating Iran's nuclear capability. Despite this, Trump reportedly told Prime Minister Benjamin Netanyahu in a phone call on Thursday that the deal was final.
Netanyahu did not publicly push back, instead releasing a statement pledging that "as long as I am prime minister of Israel, Iran will not have nuclear weapons." He also claimed there was "complete agreement" between himself and Trump on preventing Iranian nuclear armament — language designed to save face domestically while not openly opposing Washington's diplomatic move.
What Happens Next?
If the signing proceeds as announced, the immediate effect would be a ceasefire extension and the opening of the Strait of Hormuz. A 60-day diplomatic window would then begin, during which negotiators from both countries would work on the more difficult long-term questions: Iran's nuclear future, its missile arsenal, and regional proxy activity.
Markets are expected to react sharply. Energy analysts suggest oil prices could fall meaningfully if the deal holds and tanker traffic through Hormuz resumes. Defense stocks, which surged during the conflict period, may face selling pressure.
For millions of Americans and Canadians watching their energy bills, the outcome of Sunday's planned ceremony could have very tangible effects within days.
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