The Trump administration and Iran are close to reaching a deal to end the nearly three-month-old war, with remaining differences primarily over the wording of several points, a U.S. official said. President Trump was expected to decide by Sunday whether to accept the deal or resume hostilities, following discussions with negotiators and calls with regional leaders, according to axios.com.
The negotiations advanced as Pakistani Field Marshal Asim Munir, acting as a mediator, concluded meetings with Iranian officials in Tehran. Trump held a call with leaders from Saudi Arabia, the UAE, Qatar, Egypt, Turkey, and Pakistan, many of whom urged him to accept the deal. Israeli Prime Minister Benjamin Netanyahu was also scheduled for a call with Trump. Vice President JD Vance and Secretary of Defense Pete Hegseth were summoned back to Washington to discuss the potential agreement, highlighting the high-level attention on the outcome.
This potential resolution comes amid heightened economic uncertainty, with the ongoing Iran war contributing to instability in global markets. Bank of America analysts noted that the conflict, combined with inflation and fiscal concerns, has fueled a bond market rout, pushing long-term yields to their highest levels since the Great Financial Crisis. The war’s resolution could ease geopolitical tensions, potentially stabilizing markets and reducing inflationary pressures linked to oil prices and supply disruptions, according to fortune.com.
If the deal is finalized, the administration will likely shift focus to implementing terms and monitoring compliance, with key milestones including follow-up negotiations and verification mechanisms. Observers will watch closely how the agreement affects regional dynamics and U.S. fiscal and economic conditions in the near term, as well as the response from Congress and international partners.