US President Donald Trump said that if Iran does not agree to a peace deal, it will be bombed on a “very large scale”.
The president said that if Iran agreed to the proposals the war would “end”, meaning the Strait of Hormuz would “remain open to all.”
His post on Truth Social came after the market reacted to a report by Axios that the US and Iran were close to a deal that would end their two-month war.
Shop informed Washington on Wednesday expects responses from Tehran on several key points to form the basis of a one-page memorandum within the next 48 hours.
Oil prices fell sharply in response, while US stock futures, Europe-listed equities and global sovereign bonds rose.
In his Truth Social post, the president warned that if Iran does not agree to a deal, “the bombing will begin, and sadly at a much higher level and intensity than before.”
Ahead of the post, a Pakistan government official told MS Now: “The possibility of a resolution to end the war is very high in the coming days.”
A spokesperson for Iran’s Foreign Ministry told CNBC on Wednesday that they were “evaluating” the US 14-article peace proposal.
Axios reported that the deal would include Iran curbing nuclear enrichment, the U.S. lifting sanctions on Iran, and both sides stepping back from controls on ship transit through the Strait of Hormuz.
It is reported that many conditions depend on the final agreement between the delegations of the two countries.
A ceasefire between the US and Iran has been in place since April 7 to allow negotiations, but the pause in hostilities often looks fragile.
Earlier this week, Iran attacked US forces that were helping commercial ships transit through the Strait of Hormuz, and launched new attacks on the United Arab Emirates. Meanwhile, the US said it sank six small Iranian boats that had attempted to interfere with commercial ships sailing through the waterway.
But hopes for an end to the conflict were rekindled on Tuesday when Trump said he was halting “Project Freedom” – a US military operation aimed at guiding ships through the Strait of Hormuz – a day after it began to see if a peace deal could be finalized.
“Major progress has been made toward a full and final agreement with Iran,” Trump wrote in Truth Social. Post.
— CNBC’s Kevin Breuninger contributed to this report.