Trump says a deal to end the Iran war is close. Iran warns against US escalation, and Saudi Arabia seeks clarity, as oil markets stay on edge.5 min readAug 2, 2026 09:56 AM IST First published on: Aug 2, 2026 at 09:56 AM IST ShareWhatsapptwitterFacebookSaudi Crown Prince Mohammed bin Salman with US President Donald Trump. (File Photo)US President Donald Trump said Saturday evening that Middle East allies have reached the outline of a deal to end the five-month war with Iran, and that he would hold off on new strikes for now. Iran, meanwhile, warned the US against any further escalation.Here is what is happening.Trump announces a possible dealIn a post on his Truth Social platform, Trump said Iran and other Middle Eastern countries had asked for time to complete a deal. He said he had agreed to pause any new attack while a deal is worked out quickly.“The U.S.A. is locked and loaded and ready to go against the Islamic Republic of Iran, at levels of Military Terror, Strength, and Power not seen since World War II. Despite this, we have just been asked by Iran, and other Middle Eastern Countries, to hold off any attack in that… pic.twitter.com/Ylmlm06j3E— The White House (@WhiteHouse) August 2, 2026What the deal would coverFull reopening of the Strait of Hormuz.An end to what Trump called Iran’s nuclear threat.Israel joining the US in this commitment, though Israel made no separate public statement.Saudi Arabia raises concernsSaudi Crown Prince Mohammed bin Salman spoke to Trump by phone on Saturday and raised concerns about the US widening the conflict, a person familiar with the call told AP.Also read Best of Both Sides: Saudi-US deal is a recipe for nuclear proliferationThe Saudis fear that if the US strikes Iran’s energy infrastructure, Tehran could hit back at energy facilities in Saudi Arabia and other Gulf states.What the crown Prince asked TrumpThe crown prince sought clarity from Trump on what new action against Iran he was considering. A White House official confirmed that the call between the two leaders took place. However, the official did not give any further detail on what was discussed.Iran’s warning to the worldIran’s Foreign Minister Abbas Araghchi warns of any “adventurous action” by the US in separate phone calls with his Turkish counterpart and Pakistan’s army commander, according to the Iranian minister’s account on Telegram.Story continues below this adAraghchi stresses his country’s readiness to respond decisively to any “aggression”.Araghchi also speaks to his Saudi counterpart, saying that any “aggression” by the US and Israel or participation of regional countries in these actions will be met with a “decisive and proportionate response”, according to his Telegram account.What Iran told Saudi Arabia directlyAraghchi later told his Saudi counterpart that any attack by the US and Israel, or the involvement of other regional countries, would be met with a “decisive and proportionate response”, Reuters reported.Kuwait drone attack: What happenedKuwait’s army said it destroyed hostile drones launched by IranThe drones were targeting several important facilitiesA government site in northern Kuwait and private property on Bubiyan Island were hit on SaturdayFalling debris caused damage, but no one was hurt, the Kuwaiti army said.Oil and shipping impactOil prices have stayed high since the US and Israel began strikes on Iran on 28 February. Brent crude futures rose 24 per cent in July, and analysts expect prices to climb further this year.Most Read1US makes visa bond rule permanent, raises cap to $20,000; Bangladesh, Nepal, Bhutan affected2Broad Peak avalanche: Rescue briefly paused after 3 bodies recovered, Nirmal Purja among missing3Nirmal Purja, mountaineering legend, among 10 climbers killed in Broad Peak avalanche4Air India to launch Mumbai-Toronto non-stop flights, upgrades Delhi-Toronto service5Sheikh Hasina says she’ll return from India, Bangladesh says she’ll be arrested6US urges citizens to ‘consider leaving Middle East’ as Trump threatens to hit Iran ‘very hard’Story continues below this adA man sits on a surfboard as a container ship and other commercial vessels appear anchored in the Strait of Hormuz off Bandar Abbas, Iran. (AP Photo)Most shipping has avoided the Strait of Hormuz since the war began, and Iran-aligned Houthi forces in Yemen have also begun threatening the Bab el-Mandeb strait, another key route for Saudi oil exports.Britain’s maritime trade body said it had received reports of two separate tanker incidents off Oman on Saturday, including one where a vessel’s engine room was damaged.Also read Jaishankar asks Iran to avoid attacks on ships, conveys ‘deep concern’How they got hereThe war began after the US and Israel launched strikes on Iran in February.Earlier this week, the US said it stopped a surprise Iranian attack on an American base in JordanTrump had vowed to respond to that attack.Trump met Israeli Prime Minister Benjamin Netanyahu at the White House on Tuesday, their first in-person meeting since the war began, with Netanyahu pushing for the campaign against Iran to continue.White House press secretary Karoline Leavitt said Iran had “broke it, shot at commercial ships, and killed American soldiers,” referring to a truce agreement signed with the US last month.A woman walks past a mural depicting a portrait of the late Iranian Supreme Leader Ayatollah Ali Khamenei, who was killed in the US and Israel strike. (AP Photo)Where does this leave the region?The US State Department issued fresh security alerts on Saturday for Americans in Bahrain, Israel, Iraq, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia and the UAE, warning of possible flight cancellations and airspace closures as tensions continue. Whether the outlined deal holds now depends on how quickly Iran, the US and their allies can turn the current understanding into a formal agreement.AdvertisementLoading Recommendations...Advertisement