President Donald Trump announced Thursday that he has canceled U.S. strikes on Iran that were planned for later in the evening, stating that high-level discussions have advanced and a deal is expected to be “finalized” soon.

In a post on Truth Social, Trump said: “Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening.” He added that a “time and place” for a signing could be announced shortly.

Iranian officials have not publicly confirmed any agreement or major concessions, raising questions about the exact status of the negotiations. Mediators, including those from Qatar, have reportedly narrowed key gaps in talks aimed at extending a fragile ceasefire, reopening the Strait of Hormuz, and addressing Iran’s nuclear program.

Escalating Exchanges of StrikesThe apparent de-escalation follows a second consecutive day of direct military exchanges between the U.S. and Iran. The latest round was triggered after Iran downed a U.S. military helicopter, prompting American retaliatory strikes on Iranian targets, including sites near the Strait of Hormuz. Iran responded by targeting U.S. bases across the Middle East, including in Jordan, Kuwait, and Bahrain.

U.S. Central Command (CENTCOM) described its actions as “self-defense” strikes against Iranian military surveillance, communication, and air defense capabilities. Iran reported civilian impacts from the U.S. operations, including damage near southern cities.

Earlier on Thursday, Trump had escalated rhetoric significantly, threatening to hit Iran “VERY HARD TONIGHT” and stating that the U.S. would, “at some point in the not too distant future,” seize Kharg Island — Iran’s critical oil export hub responsible for the vast majority of its crude shipments — and assume “total control” of Iran’s oil and gas industry. He drew comparisons to U.S. actions in Venezuela.

Kharg Island has been a focal point in the conflict. Earlier U.S. strikes in March 2026 targeted military assets there while largely sparing oil infrastructure, though Trump has repeatedly signaled willingness to escalate against energy targets if needed.

Iran’s military announced the closure of the Strait of Hormuz — a vital chokepoint carrying about 20% of global oil trade — in response to the hostilities. U.S. Central Command has pushed back, maintaining that the waterway remains open to commercial traffic despite disruptions. The closure and related blockades have spiked global oil prices and strained international shipping.

In a related incident, three Indian nationals were killed when U.S. forces struck the Palau-flagged tanker MT Settebello off the coast of Oman. The U.S. accused the vessel of attempting to violate a blockade by transporting Iranian oil. India has condemned the attack, summoned U.S. diplomats, and confirmed that 21 other Indian crew members were rescued. The episode has added diplomatic strain to U.S.-India relations.

Financial markets reacted positively to Trump’s announcement, with oil prices tumbling and U.S. stocks rising sharply as fears of immediate further escalation eased.

The current flare-up occurs against the backdrop of a broader 2026 Iran conflict that began earlier in the year with major U.S.-Israeli strikes. A ceasefire had been in place since around April but has proven fragile amid disputes over shipping, nuclear issues, and regional proxies.

While Trump expressed optimism about a “great settlement,” analysts caution that significant hurdles remain, including verification of any Iranian commitments and the status of naval blockades. Iranian officials have previously insisted they will not back down without respect for their core interests. (ILKHA)