US-Iran peace deal possible, but Trump warns of major attacks

May 7, 2026

New Delhi: Tensions between the US and Iran remain high, but hopes for a peace deal appear to be growing.

Iran has denied allegations of attacking a South Korean cargo ship in the Strait of Hormuz. The ship caught fire this week, prompting US President Donald Trump to claim Iran attacked it.

However, Tehran has completely denied these allegations.

Trump says agreement “very possible”

Donald Trump said that there have been “very good talks” between the two countries and that an agreement to end the war is “very possible.”

But he also warned that if Iran does not comply with a potential agreement, the US could resume bombing with greater intensity.

Diplomatic Efforts Intensify

According to reports, both countries are considering a brief agreement document that could de-escalate the current conflict and pave the way for future nuclear talks.

Pakistan is acting as a mediator in this matter, while France has also become active in de-escalating tensions.

War’s Impact Continues

Despite peace talks, the situation on the ground remains tense. People in Tehran have expressed fear and uncertainty due to the months-long conflict.

Meanwhile, news of the killing of a senior Hezbollah commander in an Israeli attack in Lebanon has further escalated regional tensions.

Markets Show Positive Impact

Global markets saw a surge following news of a possible agreement. Stock markets in New York and Tokyo rose, while oil prices remained stable.