President Trump announced he cancelled planned strikes against Iran after claiming all parties approved final deal terms. His Truth Social post stated discussions reached the highest Iranian leadership level, with approval from the US, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, and Egypt. The breakthrough follows weeks of negotiations seeking to extend the April 8 ceasefire.

Brent crude futures dropped 3.9% to $89.46 per barrel following Trump's announcement, while the S&P 500 rose 1.3% and Nasdaq gained 1.8%. Markets responded positively to the prospect of reopening the Strait of Hormuz, through which roughly 20% of global oil and LNG shipments normally pass. Iran would need to remove naval mines before full reopening, and the US naval blockade on Iranian ports remains in place until finalization.

Recent tensions escalated after Trump blamed Iran for downing an American Apache helicopter, triggering two nights of retaliatory strikes. Iranian forces targeted US bases in Jordan, Bahrain and Kuwait, while the US attacked southern Iran. Despite the violence, Qatari mediators continued indirect talks through early Thursday hours, achieving what one source called major breakthroughs.

Analysts remain cautious given decades of hostility between both nations. While the preliminary agreement could temporarily ease energy market pressures, deep mistrust persists. The deal's success depends on whether hardline factions in Iran and Israel accept concessions, with Israeli pressure tactics continuing to complicate negotiations.