Trump Announces Sunday Signing of Iran Peace Agreement Despite Tehran's Uncertainty on Timeline
The US President has declared that a peace agreement with Iran will be signed Sunday to reopen the Strait of Hormuz, but Iranian officials have expressed skepticism about the proposed timeline.
President Donald Trump of the United States announced that an agreement to conclude hostilities between Washington and Tehran is set for signing on Sunday, although Iranian authorities have previously expressed skepticism regarding the proposed schedule.
"The Deal is scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is OPEN TO ALL," said Trump on Truth Social on Saturday.
Pakistani authorities, who have been facilitating negotiations between Washington and Tehran, have also indicated that a potential agreement could materialize within the next 24 hours.
The proposed agreement, characterized as a memorandum of understanding, is anticipated to prolong the ceasefire arrangement between Washington and Tehran for an additional 60 days and allow the reopening of the Strait of Hormuz.
The maritime blockade has severely restricted 20% of the world's supply of oil and liquefied natural gas, which has led to higher global asset prices and a sentiment shock that has pressured crypto markets for months.
"We are closer to a peace deal than ever before," Pakistani Prime Minister Shehbaz Sharif said on X on Saturday. "With finalisation likely expected in the next 24 hours, Pakistan is preparing for the electronic signing of the peace deal immediately after, followed by technical level talks next week."
Tehran has not provided confirmation regarding the Sunday signing ceremony.
Esmaeil Baghaei, the spokesperson for Iran's Foreign Ministry, informed state media previously that the memorandum would not be executed on Sunday, though it might take place "in the coming days."
"We will have to wait and see about the exact date of the signing of the memorandum of understanding, although it will not be tomorrow," Baghaei said.
Analysts say peace deal will benefit crypto
Michaël van de Poppe, a cryptocurrency analyst, suggested that a peace agreement between the United States and Iran would likely trigger an upward movement in Bitcoin, accompanied by positive ETF flows.
Exchange-traded funds (ETFs) tracking spot Bitcoin witnessed approximately $315.84 million in net outflows for the week ended Friday, marking the fifth consecutive week of outflows for the Bitcoin-linked crypto funds.
"Liquidity will pour back into risk-on assets as liquidity will seek for an opportunity and after SpaceX IPO was done, most likely this will go towards crypto," he added.
James Butterfill, CoinShares head of research, told Cointelegraph on Wednesday that the recent outflow from digital asset investment products was being primarily driven by geopolitics, with uncertainty around the Iran conflict weighing on the outlook for interest rates.
At the time of writing, Bitcoin was trading at $64,491, up 1.5% over the past 24 hours.