Trump claims Iran deal near as Tehran says 'nothing finalised'

US President Donald Trump announced on Thursday that the United States and Iran have reached a 'great settlement' and that the agreement documents will be finalised within days, with a possible signing ceremony in Europe. However, Iran's foreign ministry spokesperson Esmail Baghaei dismissed the reports as 'speculative', insisting that 'nothing has been finalised'.

The remarks come amid ongoing military exchanges between the two countries. The US and Israel launched wide-ranging strikes on Iran on 28 February, prompting Iranian retaliation against Israel and US-allied Gulf states, as well as the effective closure of the Strait of Hormuz. Despite a ceasefire agreed in April, both sides have engaged in intermittent fire, including two rounds of tit-for-tat strikes this week.

Following Trump's latest comments, the price of Brent crude oil plunged 4.4% to around $89 a barrel. Trump stated that the deal would ensure Iran never obtains a nuclear weapon and that the Strait of Hormuz would reopen 'as soon as we have it signed'.

Israeli Prime Minister Benjamin Netanyahu confirmed a conversation with Trump, noting that Israel is not a party to the memorandum of understanding but expressed appreciation for Trump's commitment to a final agreement that includes the removal of enriched materials, dismantling of enrichment infrastructure, limits on missile production, and cessation of Iran's support for its terrorist proxies.

Iran's foreign ministry said the majority of the memorandum text has been finalised, but accused the US of making 'excessive demands' and adding new requests. Tehran maintains it will not cross its red lines.

Earlier on Thursday, Trump had threatened to 'hit Iran very hard' and seize Kharg Island and other oil infrastructure points. Iran's military warned of retaliation 'more severe than before' if further attacks occur.

The US Central Command (Centcom) completed a wave of strikes targeting military, surveillance and radar sites in southern Iran. In response, Iran's Islamic Revolutionary Guard Corps (IRGC) launched strikes on US bases in Bahrain, Kuwait, and Jordan. A drone attack in Bahrain injured an 11-year-old girl and damaged homes and cars. Jordan intercepted around 20 Iranian missiles, while Kuwait's military engaged 'hostile aerial targets'.

India summoned a senior US diplomat after confirming that three Indian sailors were killed in a US strike on a ship in the Gulf of Oman. Twenty-one crew members were rescued. The US blockade, aimed at restricting Iran's oil export revenue, has involved firing on nine vessels, including three this week.

The UN Secretary-General's spokesperson expressed deep concern over the continuing escalation in the Middle East, urging a return to the ceasefire. Pakistan, Russia, China, Turkey, India, and Saudi Arabia also called for de-escalation.