United States President Donald Trump announced on Friday that he had cancelled a third consecutive day of planned strikes against Iran, stating that a deal with Tehran was on the verge of being finalized. Trump indicated that the "time and place of the signing" would be announced soon, suggesting a potential de-escalation in the ongoing conflict.

Earlier in the week, Trump had issued stern warnings, threatening to hit Iran "very hard" and indicating that US forces would target key locations such as Kharg Island and other oil infrastructure. However, his latest statement signals a significant shift, moving away from immediate military action towards a diplomatic resolution.

Reports from Tehran suggest that a senior Iranian official confirmed a proposal for a memorandum of understanding with the US is currently under review by the country's top leadership. While the official acknowledged the possibility of a signing, they stressed that the timing remained speculative, indicating that discussions are still fluid.

Despite the potential breakthrough in US-Iran negotiations, the Strait of Hormuz remains closed. Iran's Islamic Revolutionary Guard Corps (IRGC) announced the complete closure of the vital waterway on Thursday, a move that has significant implications for global energy markets. The strait is a critical transit point, through which approximately 20 percent of the world's oil and natural gas is shipped during peacetime.

The IRGC also claimed responsibility for attacks on US military assets in Bahrain, Kuwait, and Jordan, stating these actions were in retaliation for the second day of US strikes on Iran. This retaliatory action underscores the volatile nature of the conflict and the potential for escalation despite diplomatic overtures.

Meanwhile, the humanitarian situation in Lebanon continues to worsen. The International Rescue Committee has warned that thousands of people displaced by Israeli attacks are reaching a "breaking point." Lebanon’s Health Ministry reported that Israeli attacks on the country have resulted in 3,711 deaths and 11,483 injuries, with Israel’s army continuing its bombardment of southern Lebanon.

The broader economic consequences of the conflict are also a growing concern. The World Bank has previously cut its global growth forecast to 2.5 percent, citing surging energy prices, inflation, and borrowing costs, factors directly exacerbated by the US-Iran war and the closure of key shipping routes like the Strait of Hormuz.

Unresolved questions remain regarding the specifics of the proposed deal between the US and Iran, the conditions under which the Strait of Hormuz might be reopened, and the future trajectory of the conflict in Lebanon, which continues to unfold alongside the diplomatic efforts between Washington and Tehran.