What does the Iran-US peace deal include ?

Picture Credit: SBS

A possible diplomatic breakthrough between the United States and Iran has emerged amid one of the most volatile periods in the Middle East in years. According to US officials, Washington and Tehran have tentatively agreed to reopen the Strait of Hormuz and restart discussions over Iran’s nuclear programme, a development that could significantly reduce tensions across the Gulf. However, the agreement has yet to receive final approval from US President Donald Trump, while Iranian officials have not publicly commented on the reported understanding.

The potential deal arrives at a moment of heightened instability. For weeks, the Persian Gulf has been at the centre of global concern following military confrontations involving the United States, Israel, and Iran. The effective disruption of maritime movement through the Strait of Hormuz has shaken oil markets, disrupted supply chains, and raised fears of a broader regional war.

The Strait of Hormuz carries nearly a fifth of the world’s oil supply, making any disruption a matter of global significance. Since tensions escalated, concerns over energy shortages and soaring prices have intensified, putting pressure on governments and financial markets worldwide. A reopening of the strait could provide much needed relief, especially for economies already dealing with inflation and slowing growth.

Yet, even as diplomacy appears to gain momentum, military confrontations continue.

The US Central Command confirmed that Iran launched a ballistic missile towards Kuwait overnight, although the missile was intercepted before causing damage. Iran’s Islamic Revolutionary Guard Corps claimed responsibility for the strike, stating it was aimed at an American military installation allegedly involved in recent US attacks against Iranian targets.

The attack highlights the fragile and contradictory nature of the current situation: while diplomatic channels may be reopening, hostilities remain active on the ground. Meanwhile, tensions are also escalating in Lebanon. Israel reportedly targeted a commander within Hezbollah’s missile unit in Beirut, marking the first major strike in the Lebanese capital in several weeks. Lebanese health authorities reported dozens of casualties following Israeli operations on Wednesday, raising fears that the conflict could spill further across borders.

Against this backdrop, President Trump has continued to signal determination to secure an agreement with Tehran. During a recent Cabinet meeting, he dismissed concerns that domestic political considerations, including upcoming midterm elections, would influence his decisions on Iran.

Treasury Secretary Scott Bessent later defended Trump’s position, describing the president as acting like a “statesman” focused on preventing Iran from obtaining nuclear weapons rather than political gains. Speaking at a White House briefing, Bessent suggested there may be “the makings of a deal” while acknowledging that economic conditions remain difficult.

The stakes are exceptionally high. A successful agreement could restore maritime stability, reduce pressure on global energy markets, and revive nuclear negotiations that have remained stalled for years. However, the continuation of missile attacks and regional military operations demonstrates how quickly progress could unravel.

For now, the Middle East finds itself caught between two realities, the possibility of diplomacy and the persistence of war. Whether the tentative agreement evolves into lasting stability may depend on how both Washington and Tehran navigate the coming days, as military tensions continue to test the limits of political negotiation.