The United States and Iran are, right now, actively negotiating some kind of deal meant to stop the war that started on February 28, 2026. That whole conflict basically closed the Strait of Hormuz, made global energy markets wobble and it even helped push US inflation to the highest point in years. As of May 25, 2026, no complete agreement has been signed yet, but both parties say there’s been a lot of meaningful progress so far.
5 things to know right now:
- The war started on February 28, 2026, when the US and Israel launched airstrikes on Iranian military targets.
- Iran responded by closing the Strait of Hormuz to foreign shipping.
- A two-week ceasefire brokered by Pakistan took effect on April 8, 2026.
- On May 23, Trump said a deal was “largely negotiated,” then walked back the claim days later.
- A 14-point memorandum is being discussed, with nuclear talks expected to follow within 30-60 days of any agreement.
How Did the US-Iran War Start in 2026?
The war began on February 28, 2026, when the United States and Israel conducted airstrikes on various Iranian military targets, which included the assassination of Ali Khamenei, Iran’s Supreme Leader.
In response, Iran closed the Strait of Hormuz to all foreign shipping. The Islamic Revolutionary Guard Corps transmitted warnings via VHF radio to vessels in the strait, stating that “no ship is allowed to pass.”
The closure of the Strait of Hormuz was an enormous problem for the global economy. The strait is the main route for shipping crude oil from oil-rich countries such as Saudi Arabia and Kuwait to the rest of the world.
The conflict did not come out of nowhere. It followed the failure of indirect talks between the US and Iran, which themselves followed the October 2025 triggering of snapback sanctions against Iran under the 2015 nuclear deal by the UK, Germany, and France.
What Happened Before the War? Were There Earlier Talks?
Yes, multiple rounds of diplomacy preceded the military action.
In April 2025, the United States and Iran started indirect talks, guided somehow by Oman and Italy, even if it sounds a bit odd. The discussions pretty much revolved around Iran’s nuclear program and more specifically the uranium enrichment levels. The US was pushing to land a deal that would lower enrichment, while Iran was looking for sanctions relief, as you might expect.
These talks eventually failed, and the sixth round was cancelled after Israel’s airstrikes on Iranian nuclear and military sites. The war brought the talks to a complete halt.
After the 2026 war began, diplomacy resumed under pressure. A second round of talks between Iran and the United States concluded in Geneva, Switzerland. Iranian Foreign Minister Abbas Araghchi said Iran and the United States reached an understanding on main guiding principles, but cautioned that progress does not mean an agreement will be reached soon.
What is Pakistan’s Role in the Peace Talks?
Pakistan has emerged as the key mediator in the current round of negotiations.
Pakistan is kinda well positioned to play mediator, thanks to its cordial ties with both Iran and the United States, even if things can get messy. Pakistan’s Army Chief Asim Munir, whom US President Donald Trump has described as his “favorite field marshal” , has been steering Islamabad’s move, passing along peace proposals and then counter proposals between the two warring sides, back and forth, in a sort of quiet, deliberate rhythm.
On April 8, Pakistan arranged a conditional two-week ceasefire, which has since been extended. Talks mediated by Pakistan cover freedom of navigation through the Strait of Hormuz, Iran’s nuclear and ballistic programme, reconstruction and sanctions, and a long-term peace agreement.
What Did the April 8 Ceasefire Actually Agree To?
US President Donald Trump agreed to a proposed two-week ceasefire between the US and Iran on condition that shipping traffic would be allowed to move through the Strait of Hormuz. Iranian Foreign Minister Abbas Araghchi announced that Iran would agree to a ceasefire if attacks against Iran were halted, and that safe passage through the Strait of Hormuz would be possible for a period of two weeks.
The economic impact was immediate. Global oil prices fell sharply after the ceasefire announcement. The price of benchmark Brent crude dropped below $100, falling by about 15.9% to $92.30 a barrel, while US-traded oil fell almost 16.5% to $93.80.
However, the ceasefire immediately ran into friction. President Trump said Iran was “doing a very poor job” of allowing oil to flow through the strait, posting that Iran was charging fees to tankers, “They better not be and, if they are, they better stop now.”
Where Do the Peace Talks Stand as of May 25, 2026?
On May 23, Trump said the peace deal was “largely negotiated” and would be announced shortly, describing “an Agreement largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries.”
The agreement includes a memorandum of understanding as a first phase, Iran’s foreign ministry said, before broader talks within 30 to 60 days.
But by May 25, the tone shifted. Trump and administration officials began tempering expectations of an imminent agreement. Iranian officials also signalled disagreements on key issues remain.
Iran said Monday that Tehran and Washington had reached understandings on many issues, but warned an agreement was not imminent. An Iranian foreign ministry spokesman said: “This 14-point memorandum is focused on ending the war. If this happens, then within a 60-day period, discussions on nuclear-related issues will take place.”
What Are the Main Sticking Points?
Several issues are blocking a final deal:
- Enriched uranium: Iran has resisted sending its enriched uranium abroad, as the US has demanded. State-linked Iranian media outlets have insisted that a potential document includes no commitment to hand over stockpiles and postpones nuclear negotiations until after the war ends.
- The Strait of Hormuz fees: Iran’s foreign ministry insisted the country is “not seeking to collect tolls” for ships to transit the strait, but that a new system being created with Oman will have costs to cover operating expenses.
- Lebanon and regional fighting: Israel and Hezbollah’s continued fighting in Lebanon has been one of the complications. Iran insists that any peace deal include a halt to fighting on all fronts, including in Lebanon.
- Israel normalisation: Trump has also called for more countries in the Middle East to normalise ties with Israel as part of any deal, a demand that complicates negotiations significantly.
What Happens to Global Markets If a Deal is Reached?
The economic stakes are significant. A deal could end a conflict that has choked global energy markets and pushed US inflation to its highest level in years. Current talks have centred on re-opening the Strait of Hormuz. World oil prices rose sharply after Iran restricted access to the vital waterway. Shipping disruptions related to container traffic through the strait have affected the global availability and cost of a huge variety of products, from fertilizer to plastic consumer goods.
US stock futures jumped on May 25, suggesting investors are cautiously optimistic that a deal will eventually be reached, even if not immediately.
What Comes Next?
The situation as of May 25, 2026 is this: both sides acknowledge progress, both sides acknowledge obstacles, and no final deal exists yet. The immediate priority is the memorandum of understanding focused on ending the war and reopening the Strait of Hormuz. Nuclear negotiations are explicitly being pushed to a later phase, 30 to 60 days after any initial agreement.
Whether those later talks succeed will depend on questions that have not been resolved in decades of US-Iran diplomacy: enrichment limits, sanctions relief, regional influence, and what verification of any agreement actually looks like in practice.
Key Takeaways
- The US-Iran war began February 28, 2026 with US and Israeli strikes; Iran responded by closing the Strait of Hormuz.
- A Pakistan-brokered ceasefire took effect April 8, 2026 and has been extended.
- As of May 25, a 14-point memorandum is under negotiation, but no final deal is signed.
- Nuclear talks are being deferred to a second phase, 30-60 days after any initial agreement.
- Key sticking points include Iran’s uranium stockpiles, Strait of Hormuz transit arrangements, and the Lebanon conflict.
- Global oil prices and markets are closely tied to the outcome of these negotiations.
