Pres. Donald Trump in Davos, Switzerland. (Photo: Mandel Ngan / AFP).
Pres. Donald Trump of the USA withdrew his threats to carry out bombing attacks against Iran on Thursday and promised that the signing of an agreement with Tehran would follow soon.
His announcement came after he canceled planned military strikes on Iran because of the progress made in the peace talks.
“Based on the fact that discussions with the Islamic Republic of Iran have been held and approved at the highest level of the Iranian leadership, I have … canceled the planned attacks and bombings on Iran for tonight,” Trump announced.
“The time and place of the signing will be announced soon,” he promised, after explaining that the finer details of the arrangement had been approved by the US and its allies in the region, including Israel.
There was no immediate official response from Iran, but the Fars news agency reported that an informed source close to Tehran’s negotiating team said: “No text for a preliminary memorandum of understanding with the US has been approved.”
Markets were concerned that the latest exchange of threats and missile attacks over the Gulf region would further disrupt the global economy, and earlier in the day the World Bank adjusted its global growth forecast downwards to a level not seen during the covid-19 pandemic.
However, stocks rose sharply and oil futures fell more than three percent within minutes of Trump’s optimistic announcement.
The war, which began on February 28 and efforts to bring about a permanent end to the fighting, have struggled ever since.
However, Trump’s latest announcement suggests that behind-the-scenes mediation by US allies such as Pakistan and Qatar may now be paying off.
“Discussions and final points have been approved, in draft and in great detail, by all parties involved, including the US, Israel, Saudi Arabia, the United Arab Emirates, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt and others,” Trump said.
“The naval blockade (in the Strait of Hormuz) will remain in full force until this agreement is concluded,” he said, just a day after declaring that US forces would not only intensify airstrikes, but also take control of Iran’s oil export facility on Kharg Island in the Gulf.
Iran has also warned that the Strait of Hormuz, an important transit point for oil and gas, will “remain closed until further notice”.