U.S. President Donald J. Trump sits at a table monitoring military operations during Operation Epic Fury against Iran, with U.S. flags visible behind him, in Washington, United States, on March 02, 2026.
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U.S. President Donald Trump said that Iran will be bombed “at a much higher level” if they don’t agree to a peace deal.
The president said operation Epic Fury — the U.S. codeword for the conflict — “will be at an end”, if Iran agrees to the proposals, meaning the Strait of Hormuz “will be open to all.”
The U.S. and Iran are close to an agreement that would bring the belligerents’ two-month war to an end, according to Pakistani government sources, with a conclusion “very likely in the coming days”.
Axios initially reported on Wednesday that Washington expects responses from Tehran on several key points to form the basis of a one-page memo within the next 48 hours.
Oil prices fell sharply in response, while U.S. stock futures, equities listed in Europe and global sovereign bonds rallied.
In a Truth Social post, President Donald Trump said that Epic Fury — the U.S. codename for the war — “will be at an end”, if Iran agrees to the proposals, meaning the Strait of Hormuz “will be open to all”.
However, the president warned that a failure to agree would mean U.S. “bombing starts at [a] much higher level.”
A Pakistan government official told MS Now: “The prospect of a proposal to end the war is very likely in the coming days.”
A spokesperson for Iran’s foreign ministry told CNBC they were “evaluating” a 14-article peace proposal from the U.S.
Axios reported that the deal would involve Iran committing to a moratorium on nuclear enrichment, the U.S. lifting sanctions on Iran, and both parties retreating from controls on ship transits through the Strait of Hormuz.
Many of the terms are reported to be contingent on a final agreement being reached between the two countries’ delegations.
A ceasefire between the U.S. and Iran has been in place since April 7 to allow for negotiations, but the break in hostilities has often looked fragile.
Earlier this week, Iran attacked U.S. forces that were helping commercial vessels transit the Strait of Hormuz, and launched fresh attacks on the UAE. The U.S., meanwhile, said it sank six small Iranian boats that attempted to interfere with commercial ships moving through the waterway.
But optimism for an end to the conflict resurfaced on Tuesday when Trump said he was pausing “Project Freedom” — the U.S. military’s operation aimed at guiding ships out of the Strait of Hormuz — one day after it began to see whether a peace deal could be finalized.
“Great Progress has been made toward a Complete and Final Agreement” with Iran, Trump wrote in a Truth Social post.
— CNBC’s Kevin Breuninger contributed to this report.
