President Trump and Iranian officials sent conflicting signals Sunday over a potential peace agreement, creating uncertainty for oil markets already strained by the Strait of Hormuz closure. Trump claimed a deal was imminent and would immediately reopen the critical waterway, while Iranian Foreign Ministry spokesman Esmail Baghaei said no signing was planned for Sunday.

The proposed memorandum of understanding would temporarily end hostilities for 60 days, with Iran reopening the Strait of Hormuz to shipping and the US lifting its naval blockade on Iranian ports. Both sides would negotiate Tehran's nuclear program and sanctions relief, though Israeli officials have expressed concerns that Iran might avoid meaningful concessions. The strait handles roughly 20% of global petroleum liquids, making its reopening a significant economic event.

Conservative opposition emerged in Iran, where parliamentarians criticized the deal and protesters gathered outside the Foreign Ministry in Mashhad. British Prime Minister Keir Starmer endorsed progress toward peace while emphasizing the need for a durable agreement. Meanwhile, fighting continued in Lebanon between Israel and Hezbollah, complicating regional negotiations.

Vice President JD Vance is expected to lead the US delegation if talks proceed in Geneva. The electronic signing format represents a departure from traditional diplomatic ceremonies. With both sides framing the deal as a victory, market participants await clarity on timing and terms that could reshape Middle Eastern trade routes and energy flows.