Trump's Iran Deal Drama: Threats, Twists, and a Market Rollercoaster

Just when it looked like missiles were about to fly again, Donald Trump pulled a classic U-turn, announcing he'd called off fresh strikes on Iran because a "great settlement" was suddenly on the table.

The US president told reporters the agreement — aimed at keeping Iran from ever getting a nuclear bomb — was basically done, with paperwork wrapping up in the next few days and a likely signing ceremony somewhere in Europe. He painted a rosy picture: the Strait of Hormuz would reopen, the whole Middle East was thrilled, and he'd even chatted with Gulf leaders and Benjamin Netanyahu about it.

But Tehran wasn't singing the same tune. Iran's Foreign Ministry spokesman Esmail Baghaei brushed off the reports as pure speculation, insisting nothing was finalized. He admitted most of the draft text was settled, but accused the Americans of piling on "excessive demands" and new last-minute requests. Iran, he said, wouldn't budge on its core red lines.

This isn't the first time Trump has hyped an imminent breakthrough with Iran that hasn't quite materialized. The backdrop is messy: after heavy US-Israeli strikes on Iran back in late February, Tehran hit back hard — targeting Israel and Gulf allies, and shutting down the critical Strait of Hormuz, a lifeline for global oil and gas shipments. A ceasefire was announced in April, but sporadic tit-for-tat attacks have continued, including fresh exchanges this week.

Markets reacted instantly to Trump's optimism. Brent crude prices tumbled more than 4% to around $89 a barrel as traders bet on calmer waters ahead.

Trump doubled down in his remarks: "We have a deal that Iran will never have a nuclear weapon... it's a very big thing." He added that documents were in "pretty final shape," and the Hormuz shipping route would flow freely again once the ink is dry.

Netanyahu's office confirmed the call with Trump but made it clear Israel isn't directly part of the understanding. They highlighted hopes for tough terms: stripping out enriched uranium, tearing down enrichment facilities, curbing missile work, and cutting Iran's backing for regional militant groups.

Meanwhile, Iran's top negotiator Mohammad Bagher Ghalibaf warned that impulsive moves could trap the US in a years-long "quagmire."

The latest flare-up came after a US Apache helicopter went down in the Gulf on Monday. Hours before his optimistic pivot, Trump had been threatening heavy new strikes and even talked about seizing Kharg Island — Iran's key oil export hub — and taking broad control of oil markets, echoing past moves in Venezuela. Iran fired back with warnings of even harsher retaliation, declaring that if their oil exports are threatened, nobody's getting any.

On the ground, US forces hit Iranian military and radar sites in the south, while Iran launched drone and missile attacks on American bases in Bahrain, Kuwait, and Jordan. A young girl was injured in Bahrain, with homes and vehicles damaged.

As talks drag on — with Trump previously saying a deal was coming "relatively quickly" back in April, only to express dissatisfaction by late May — the region remains on edge, caught between fragile diplomacy and the constant shadow of escalation.