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Trump Expands Iran Ambition to Full Mideast Reset — Pushes Abraham Accords as US Sinks IRGC Ships in Hormuz

by Team Lumida
May 26, 2026
in Macro
Reading Time: 4 mins read
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  • Trump escalated his diplomatic ambition Monday, calling not just for an Iran end-of-war agreement but for Saudi Arabia, Qatar, Pakistan, Turkey, Egypt, Jordan, and eventually Iran to join the Abraham Accords — a sweeping normalization push he called “the most important Deal” any of these countries will ever sign.
  • The broader vision came as hawkish Republicans including Senators Cruz, Graham, and Wicker, as well as former Secretary of State Pompeo and former NSA John Bolton, savaged the emerging Iran framework as a “disastrous mistake” that would leave Tehran empowered — with Cruz comparing it to the Obama nuclear deal Trump himself terminated.
  • Tensions spiked Monday when the US sank two IRGC vessels attempting to lay mines in the Strait of Hormuz; Iran responded with surface-to-air missiles targeting US aircraft, prompting American strikes on missile launchers near Bandar Abbas — even as the ceasefire nominally holds.
  • Key sticking points remain unresolved: Saudi Arabia has long conditioned Abraham Accords participation on a pathway to Palestinian statehood, Qatar said it has no current plans to join, and Iran has not agreed to nuclear dismantlement timelines, sanctions relief terms, or frozen asset release schedules.

What Happened?

Facing a political backlash from within his own party over what critics called a weak Iran framework — a simple Hormuz-for-blockade swap with nuclear issues deferred — Trump moved to reframe the entire initiative as something far larger: a historic Middle East normalization deal anchored by expanded Abraham Accords. In social media posts Monday, Trump called on Saudi Arabia, Qatar, Pakistan, Turkey, Egypt, and Jordan to establish or expand diplomatic relations with Israel, and suggested Iran could eventually join after signing a peace deal. Meanwhile, the situation on the ground escalated: the US sank two IRGC ships attempting to mine the Strait of Hormuz, Iran fired surface-to-air missiles at US aircraft, and US forces struck missile launchers near Bandar Abbas. Secretary of State Rubio, traveling in New Delhi, described the emerging structure as a three-part framework: reopen Hormuz, dispose of enriched uranium, then negotiate a permanent end to the nuclear program.

Why It Matters?

The Abraham Accords expansion gambit is politically clever — it gives Trump a way to recast a narrow ceasefire as a generational geopolitical achievement — but the practical obstacles are enormous. Saudi Arabia has been unambiguous that normalization with Israel requires a credible Palestinian state pathway, a condition Israel under Netanyahu cannot and will not accept. The Gulf states that Trump wants to sign on are the same countries whose energy infrastructure has been attacked in this conflict, and their populations are deeply hostile to Israel after Gaza and Lebanon. Monday’s military exchange in Hormuz — mines, missiles, airstrikes, all during a nominal ceasefire — illustrates how fragile the current pause is. The gap between Trump’s public posture (“negotiations proceeding nicely”) and the actual situation (unresolved nuclear terms, active shooting, Gulf state pushback) is as wide as it has been at any point in the conflict.

What’s Next?

Senator Graham’s pivot — from Iran deal critic to calling Trump’s Abraham Accords push “simply brilliant” within 24 hours — suggests the political dynamics in the GOP are fluid and Trump has room to maneuver if he frames any deal as visionary rather than concessionary. Watch for whether the US and Iran can agree on a formal ceasefire extension and Hormuz reopening timeline as a first step, and whether the mine-laying incident prompts renewed strikes or gets absorbed as a one-off. The nuclear terms, frozen assets, and sanctions relief remain the hard core of any durable agreement — and none of those issues are close to resolution. Saudi Arabia’s response to the Abraham Accords push will be the clearest early signal of whether the grand vision has any traction.

Source: The Wall Street Journal

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

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‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
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