U.S. President Donald Trump said peace talks with Iran are making progress and that the two sides could agree on a memorandum of understanding (MOU) within the next week.
According to ABC in the United States on the 1st (local time), Trump, in a phone interview with ABC, answered a question about the timing of an MOU to end the war by saying, "I think people will be talking about that issue within the next week." Trump added, "There are still a few issues that need to be resolved," noting that a final agreement has not yet been reached.
The United States and Iran are reportedly discussing extending the cease-fire for an additional 60 days and ensuring the free passage of civilian vessels through the Strait of Hormuz, which is effectively controlled by Iran. The Strait of Hormuz is a key route for global crude shipments, and as military tensions between the two countries have recently risen, it has been cited as a source of instability for international oil prices and maritime logistics markets.
However, observers say many hurdles remain before a deal can be reached. Trump is demanding that Iran abandon nuclear weapons development and that highly enriched uranium (HEU) buried on Iranian territory be located and removed as core conditions for ending the war. In particular, he has held to the position that the uranium removal work must be led by the United States, leaving it uncertain whether the two sides can find a final middle ground.
If the United States and Iran sign an MOU to end the war, not only would the Middle East situation stabilize, but much of the instability in the global energy supply chain surrounding the Strait of Hormuz would likely ease. However, given that differences over the nuclear issue persist, analysts say last-minute turbulence is likely to continue before an actual agreement.