U.S. President Donald Trump has expressed optimism that the United States and Iran could reach an agreement within the next week to extend the current ceasefire and reopen the strategically important Strait of Hormuz, a key global shipping route for oil and gas exports.
Speaking in a phone interview with ABC News, Trump said negotiations were progressing positively despite recent tensions in the region. “Looking good, looking good,” he said, adding that while some issues remain unresolved, he believes a breakthrough is possible in the coming days. Trump indicated that he has not yet approved a proposed Memorandum of Understanding (MoU) because negotiators are still working through a few remaining points.
The comments come amid ongoing diplomatic efforts to transform a fragile ceasefire into a longer-term agreement. Trump said discussions with Tehran are continuing at a “rapid pace,” even after reports emerged that Iran had considered suspending talks following Israeli military operations in Lebanon. According to the U.S. president, diplomatic engagement remains active and both sides are still pursuing a negotiated outcome.
The reopening of the Strait of Hormuz is seen as a central element of any potential deal. The narrow waterway handles a significant share of global oil and liquefied natural gas shipments, making it one of the world's most important energy transit routes. Concerns about disruptions in the strait have contributed to volatility in international energy markets in recent months.
Trump also suggested that a diplomatic settlement with Iran could prove more valuable than a military victory, emphasizing that negotiations are challenging given the longstanding hostility between the two countries. Nevertheless, he said progress is being made and expressed confidence that both sides can reach an understanding.
Financial markets reacted cautiously to the latest developments. Oil prices declined on Tuesday as traders weighed the possibility of a breakthrough against continuing uncertainty over the negotiations. Analysts say any agreement that guarantees safe navigation through the Strait of Hormuz could ease concerns about global energy supplies and help stabilize markets.
While no final agreement has yet been signed, Trump's latest remarks have fueled expectations that a significant diplomatic development between Washington and Tehran could emerge within the next week.
