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US-Iran peace deal
US-Iran peace deal 'very possible' but Trump warns of intense bombing
US-Iran peace deal 'very possible' but Trump warns of intense bombing
Donald Trump said that if Iran fails to honour a potential agreement, Washington will resume its bombing campaign at a "much higher level and intensity."
Updated on: May 07, 2026 1:55 PM IST By Khushbu Sahu Share via Copy link The world is holding its breath as high-stakes diplomatic relations unfold between the United States and Iran. In a whirlwind 24 hours, the narrative has shifted from the brink of total escalation to a cautious, albeit tense, hope for peace. US President Donald Trump on Wednesday spoke of "very good talks" and the potential for a breakthrough with Iran. (File photo/Reuters) On Thursday, Tehran denied attacking a South Korean-linked cargo ship in the Strait of Hormuz, a flashpoint that has kept global energy markets on edge, as reported by news agency AFP. This denial came just as US President Donald Trump signalled that a deal to end the war, which broke out in late February, is "very possible." Track US-Iran war live updates.A Denial Amidst the Smoke
The vessel at the heart of the latest tension, the Panama-flagged HMM Namu, caught fire on Monday while carrying 24 crew members through the strategic waterway. While Trump claimed Iran had "taken some shots" at the ship, Tehran’s embassy in Seoul issued a stern rebuttal, "categorically" denying any involvement. The incident highlights the razor-thin margin for error in the Strait, where US-led efforts are currently underway to restore safe shipping routes.The diplomatic route
President Trump on Wednesday spoke of "very good talks" and the potential for a breakthrough. However, that optimism was tempered with a stark warning: if Iran fails to honour a potential agreement, Washington will resume its bombing campaign at a "much higher level and intensity." US news outlet Axios, citing two officials, reported that both sides are eyeing a one-page memorandum of understanding. This document could serve as a bridge to end the current hostilities and set a framework for future nuclear negotiations.The View from the Ground
While the halls of power in Islamabad and Paris buzz with talk of "frameworks," the human reality remains grim: In Tehran, Residents expressed a mix of exhaustion and scepticism. One 43-year-old translator told AFP that the prospect of a deal that keeps the status quo is "terrifying" after months of hardship. In Lebanon: The war’s shadow continues to loom. An Israeli strike in Beirut’s southern suburbs killed a senior Hezbollah commander on Wednesday, a source close to the Iran-backed group told AFP. This marks the first such hit in nearly a month.Global Pressure and Market Reaction
The international community is moving fast to capitalise on the diplomatic opening. France’s Show of Force: President Emmanuel Macron has been on the phone with Iranian President Masoud Pezeshkian, urging an end to "unjustified" attacks. Simultaneously, the French aircraft carrier Charles de Gaulle is transiting the Suez Canal to secure the region. The Market Rally: Global investors are voting for peace. Stocks in New York and Tokyo surged to record highs, and oil prices stabilised as traders bet on a successful negotiation. The proposal is currently "under review" in Tehran. With Pakistan acting as a key mediator, the coming days will determine if the current momentum leads to a "lasting agreement" or if the region slips back into high-intensity conflict. (With AFP inputs) ABOUT THE AUTHOR Khushbu Sahu Khushbu Sahu is a journalist with the online desk, assisting with research, writing, editing, and curating digital content, while gaining experience in SEO and content publishing workflows. She is currently pursuing a PGDM in English Journalism from the Indian Institute of Mass Communication (IIMC), New Delhi. Khushbu holds a Bachelor’s degree in German from Jawaharlal Nehru University (JNU), where she developed a strong foundation in language, culture, and global perspectives. She was awarded a scholarship to attend a language programme at Vytautas Magnus University in Lithuania, which provided her with international exposure and an opportunity to engage with diverse cultural and academic environments across Europe. Her areas of interest include politics, international relations, public policy, and human-interest stories. She is particularly interested in exploring how policies impact communities on the ground. Previously, she worked as a content writer with Karamrath and was associated with the Gandhi Fellowship, where she engaged in grassroots development initiatives. She has also interned in the public policy space, contributing to research and programme development in the education sector.Read More Strait Of Hormuz Iran Us Iran War Donald Trump Us Top News Get the latest headlines from US news and global updates from Pakistan, Nepal, UK, Bangladesh, Russia, and get all the latest headlines in one place on Hindustan Times. News/World News/US-Iran Peace Deal 'very Possible' But Trump Warns Of Intense Bombing See LessThe world is holding its breath as high-stakes diplomatic relations unfold between the United States and Iran. In a whirlwind 24 hours, the narrative has shifted from the brink of total escalation to a cautious, albeit tense, hope for peace.
On Thursday, Tehran denied attacking a South Korean-linked cargo ship in the Strait of Hormuz, a flashpoint that has kept global energy markets on edge, as reported by news agency AFP. This denial came just as US President Donald Trump signalled that a deal to end the war, which broke out in late February, is "very possible." Track US-Iran war live updates.
The incident highlights the razor-thin margin for error in the Strait, where US-led efforts are currently underway to restore safe shipping routes.
US news outlet Axios, citing two officials, reported that both sides are eyeing a one-page memorandum of understanding. This document could serve as a bridge to end the current hostilities and set a framework for future nuclear negotiations.
In Tehran, Residents expressed a mix of exhaustion and scepticism. One 43-year-old translator told AFP that the prospect of a deal that keeps the status quo is "terrifying" after months of hardship.
In Lebanon: The war’s shadow continues to loom. An Israeli strike in Beirut’s southern suburbs killed a senior Hezbollah commander on Wednesday, a source close to the Iran-backed group told AFP. This marks the first such hit in nearly a month.
France’s Show of Force: President Emmanuel Macron has been on the phone with Iranian President Masoud Pezeshkian, urging an end to "unjustified" attacks. Simultaneously, the French aircraft carrier Charles de Gaulle is transiting the Suez Canal to secure the region.
The Market Rally: Global investors are voting for peace. Stocks in New York and Tokyo surged to record highs, and oil prices stabilised as traders bet on a successful negotiation.
The proposal is currently "under review" in Tehran. With Pakistan acting as a key mediator, the coming days will determine if the current momentum leads to a "lasting agreement" or if the region slips back into high-intensity conflict.
(With AFP inputs)
Source: HindustanTimes
Related Posts: Iran,diplomatic relations,Strait of Hormuz,nuclear negotiations,us iran tensions,trump
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