TLDR
- Trump says Iran nuclear deal talks are in their “final stages” but warns of renewed strikes if no agreement is reached
- A new peace proposal drafted by Qatar and Pakistan is being reviewed by Iran, which has shown little flexibility
- Trump and Netanyahu had a tense call Tuesday, with one source saying Netanyahu’s “hair was on fire”
- Iran’s latest offer largely repeats terms Trump has already rejected, including control of the Strait of Hormuz
- Oil prices are rising, with Brent crude near $108 a barrel, as the Strait of Hormuz remains largely closed
President Trump said Wednesday that negotiations with Iran are in their final stages, but warned that military action could resume if a deal is not reached. Six weeks have passed since Trump paused Operation Epic Fury for a ceasefire, and talks have made little progress.
US reportedly submitted a draft of a new agreement to Iran via Pakistan, Al Arabiya reports. Iran is still reviewing the text and has not submitted a response yet. Work is reportedly underway on a framework for a temporary US-Iran agreement.
— Wall St Engine (@wallstengine) May 21, 2026
“We’ll see what happens. Either have a deal or we’re going to do some things that are a little bit nasty,” Trump told reporters.
Trump said he came close to ordering new strikes this week but held off to allow more time for diplomacy. He said he called off the attacks at the last minute following requests from several Gulf neighbors of Iran.
A New Proposal, Old Problems
Qatar and Pakistan drafted a revised peace memo with input from regional mediators including Saudi Arabia, Turkey, and Egypt. The goal is to get clearer commitments from Iran on its nuclear program, and more specifics from the U.S. on releasing frozen Iranian funds.
Iran confirmed it is reviewing an updated proposal. But Tehran’s own offer, submitted this week, largely repeats terms Trump has already rejected. Those include Iranian control of the Strait of Hormuz, compensation for war damage, sanctions relief, and the withdrawal of U.S. troops.
Iran’s Foreign Ministry said talks were continuing “based on Iran’s 14-point proposal.” Pakistan’s interior minister traveled to Tehran on Wednesday to help with mediation — his second visit in less than a week.
Trump and Netanyahu at Odds
Trump and Israeli Prime Minister Benjamin Netanyahu held a tense call on Tuesday. One source said Netanyahu’s “hair was on fire” after the conversation.
Netanyahu is skeptical of the negotiations. He wants to resume military operations to further degrade Iran’s capabilities and destroy its critical infrastructure.
Trump said Netanyahu “will do whatever I want him to do” on Iran, while also noting they have a good relationship. Two Israeli sources confirmed the leaders disagreed on how to move forward. Israel’s embassy denied that the ambassador had discussed the call with U.S. lawmakers.
Hormuz and Oil Prices
Iran has largely kept the Strait of Hormuz closed to all but its own ships since the U.S.-Israeli campaign began in February. The closure has caused the biggest disruption to global energy supplies in recent history.
Shipping monitor Lloyd’s List reported around 54 ships transited the strait last week, roughly double the previous week. Iran said 26 ships crossed in the past 24 hours. Before the war, around 140 ships crossed daily.
Two large Chinese tankers carrying about 4 million barrels of oil exited the strait Wednesday, following an agreement Iran reached with China last week. South Korea said one of its tankers also crossed in cooperation with Iran.
Brent crude eased about 2.75 percent Wednesday to near $108 a barrel, though prices have trended higher week by week.
Trump is under pressure to end the war before November’s congressional elections, as high energy prices are hurting Republican support.
Iran’s Revolutionary Guards warned Wednesday that if the U.S. restarts attacks, the conflict would extend beyond the Middle East. New drone strikes hit Saudi Arabia and the UAE this week, reportedly from Iraq-based militias linked to Iran.
As of Wednesday, Iran still holds its stockpile of near-weapons-grade enriched uranium and retains its missile and proxy capabilities.
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