Trump links Iran deal to Arab-Israel normalisation

President Trump signalled that a US-Iran deal will be contingent on a broader diplomatic agreement requiring Muslim-majority nations to normalise relations with Israel under an expanded Abraham Accords framework.

Trump posted on Truth Social that these countries must “simultaneously” sign the Accords, a push reinforced by a May 23 conference call with representatives from Saudi Arabia, the UAE, Qatar, Pakistan, Turkey, Egypt, Jordan, and Bahrain.

The UAE and Bahrain already normalised relations with Israel in 2020, along with Sudan and Morocco, while Saudi Arabia and Pakistan have historically conditioned recognition on Palestinian statehood, and Turkey and Egypt already maintain diplomatic ties.

Meanwhile, Iran negotiations are reportedly advancing, with key sticking points including uranium disposal and reopening the Strait of Hormuz, through which roughly 20% of global oil passes daily.

Market reactions show oil prices declining as traders anticipate increased supply if sanctions ease and shipping routes reopen, while Bitcoin and other digital assets have seen little movement, indicating commodities remain the preferred geopolitical hedge.

Pro-Israel factions in the US have expressed mixed reactions to linking Arab-Israel normalisation to the Iran nuclear deal, noting that the combined diplomatic demand complicates negotiations.

Investors are advised to monitor developments in Saudi and Qatari normalisation, Iran nuclear progress, and Strait of Hormuz shipping activity, as these factors could influence oil prices and broader risk sentiment in global markets.

At the time of reporting, Bitcoin price was $77,268.05.