Trump: Oil Is Flowing Again, No Nukes for Iran

President Donald Trump is celebrating what he describes as a major foreign policy breakthrough, arguing that a new agreement with Iran has already begun delivering results even before the full details of a permanent settlement are finalized.

In a Truth Social post Thursday morning, Trump pointed to what he sees as the early successes of the agreement, declaring that global energy markets have stabilized, stock markets are surging, and Iran has committed to remaining free of nuclear weapons.

“OIL IS FLOWING, IRAN CAN NEVER HAVE A NUCLEAR WEAPON (THE WORLD WILL BE SAFE!), THE STOCK MARKETS ARE ROARING, JOBS ARE AT RECORDS, AND PRICES ARE DROPPING (AFFORDABILITY!). OUR COUNTRY IS STRONG, SAFE, AND RESPECTED LIKE NEVER BEFORE. ‘YOU’RE WELCOME!'” Trump wrote.

For supporters of the administration, the agreement represents an important first step. While negotiations are expected to continue over the coming weeks, they argue the framework already accomplishes two major strategic goals: restoring the free flow of oil through one of the world’s most important shipping lanes and placing Iran on a path toward permanently abandoning nuclear weapons.

A Framework Rather Than a Final Peace Treaty

Although Trump has announced the agreement as complete, analysts generally describe the current document as a Memorandum of Understanding rather than a comprehensive peace treaty.

The one page agreement establishes a 60 day negotiating period during which the United States and Iran will work through the remaining details involving Iran’s nuclear program, sanctions relief, frozen financial assets, and broader regional security issues.

Rather than attempting to solve every disagreement immediately, the framework creates a roadmap for negotiations while implementing several significant measures immediately.

Among those initial provisions are the reopening of the Strait of Hormuz, the phased removal of the U.S. naval blockade, the restoration of safe commercial shipping, and the return of Iranian oil to global markets.

Those actions alone represent a substantial reduction in tensions surrounding one of the world’s most critical energy corridors.

Oil Begins Flowing Again

Perhaps the most immediate consequence of the agreement has been the reopening of the Strait of Hormuz.

The narrow waterway serves as one of the world’s most important energy chokepoints, carrying a significant portion of internationally traded oil. Disruptions there have historically driven energy prices sharply higher and increased fears of broader regional conflict.

Trump highlighted that achievement days earlier when announcing the agreement.

“I hereby fully authorize the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorize the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!” he wrote on Truth Social.

He later added that “oil will flow on both ends again for the Region, and the World!”

The administration believes restoring commercial shipping through the Strait will help stabilize global energy markets while reducing the geopolitical risk premium that had been built into oil prices.

Iran Agrees to No Nuclear Weapons

Another central feature of the agreement is Iran’s commitment not to develop nuclear weapons.

According to the framework, Iran has agreed to address its stockpile of enriched uranium under supervision from the International Atomic Energy Agency. The agreement establishes a pathway for international verification while negotiations continue over the exact implementation details.

The framework reportedly envisions managing Iran’s approximately 440 kilograms of weapons grade uranium through monitored dilution rather than immediately transferring the material outside the country, an issue that remains one of the key subjects for further negotiations.

Trump has emphasized that the agreement differs substantially from the 2015 nuclear accord negotiated during the Obama administration.

He described the new framework as “the exact opposite” of that earlier agreement, arguing that this version permanently prevents Iran from obtaining a nuclear weapon.

Trump has also stated that Iran would not acquire nuclear weapons through “purchase, development, or any other form of procurement,” and previously said that remaining nuclear material would ultimately be removed and destroyed once conditions allow.

Markets Respond Favorably

Financial markets have reacted positively to news of the agreement.

As concerns about a wider Middle East conflict eased, oil prices fell sharply to roughly a three month low near $78 per barrel. At the same time, major stock indexes including the S&P 500, the Stoxx Europe 600, and Japan’s Nikkei 225 all moved toward record highs.

Investment analysts say much of that reaction reflects the removal of the so called “war premium” that had been built into energy prices during recent tensions.

Lower oil prices also reduce inflation pressures, potentially supporting consumer spending and broader economic growth.

Trump has connected those developments to improving affordability at home, noting that gasoline prices have fallen below $4 per gallon, representing a drop of more than 50 cents over the past month. He also pointed to record employment levels while arguing that prices across the economy continue to ease.

Several Issues Still Need Resolution

Despite the optimistic market response, the framework leaves several significant issues to be negotiated.

Analysts note that nuclear verification procedures still require detailed implementation. The timing of sanctions relief and the release of frozen Iranian assets also remain tied to Iran’s compliance with future negotiations.

The agreement likewise leaves Iran’s ballistic missile program largely untouched, an omission that critics are expected to continue highlighting.

Regional security issues involving Lebanon, Israel, and Hezbollah also remain unresolved. While Iran seeks a broader regional ceasefire, Israel was not a direct participant in these negotiations and continues to maintain its own security policies regarding Hezbollah.

Another practical challenge involves restoring confidence among shipping companies and insurers. Although the Strait of Hormuz has legally reopened, commercial operators may require additional time before fully resuming normal traffic due to concerns over insurance, navigation hazards, and lingering security risks.

A Foundation for a Broader Agreement

Even with those unresolved issues, many observers view the Memorandum of Understanding as establishing an important negotiating framework rather than attempting to solve every problem immediately.

The next 60 days will determine whether negotiators can convert the current framework into a comprehensive and durable agreement.

For now, however, supporters of the administration argue that the early objectives have already been achieved. Oil is once again moving through global markets, tensions have eased, investors have responded positively, and Iran has formally committed to a pathway that would prevent it from obtaining nuclear weapons.

From the administration’s perspective, those developments represent meaningful progress while negotiators continue working through the remaining technical and political details needed to produce a lasting settlement.