Donald Trump has raised the stakes in ongoing negotiations with Iran, warning that financial markets could plunge to Great Depression-era levels if hostilities continue. The warning underscores Trump's push to finalize a peace deal after months of talks between U.S. and Iranian representatives.
The comparison to 1929 represents one of Trump's starkest economic projections yet regarding the fallout from prolonged conflict in the region. His remarks came as negotiations advanced toward what officials described as a completed framework agreement.
Trump also expressed frustration with Israel's military conduct. He stated that Israel "could behave better" in its operations against Hezbollah, signaling concern that escalation by regional actors could derail diplomatic progress. Separately, he characterized a strike on an Iranian school as still under investigation, stopping short of a full assessment.
On the deal itself, Trump projected quick resolution. He said the Strait of Hormuz would be "completely open" by Friday and predicted the agreement would be signed within days, at one point suggesting it could happen over a weekend. Iranian officials and a mediator involved in the talks confirmed that the final text of a peace deal had been reached, with next steps being finalized.
Vice President JD Vance provided specifics on the agreement's terms, noting that nuclear inspectors would return to Iran as part of the arrangement. This detail mirrored elements of the 2015 nuclear deal that Trump had previously withdrawn from during his first term, though officials emphasized this framework differed from the Obama-era agreement.
The acceleration toward signing, however, was tempered by Iranian state media, which described reports of a finalized deal as "speculative and nothing has been finalized." This contradiction highlighted the fragility of negotiations even as both sides appeared closer to an accord.
The deal's centerpiece included reopening the strategically critical Strait of Hormuz, a flashpoint for regional tensions and global trade. Trump's confidence in swift resolution stood in sharp contrast to the months of stalled talks that had preceded the breakthrough.
Author Sarah Mitchell: "Trump's 1929 warning is pure economic leverage, but it signals he's genuinely willing to move fast on Iran if both sides hold firm."
Comments