A tentative peace deal to end the war between the United States and Iran appears within reach, with officials in both countries indicating that a written text is close to completion and broadly acceptable to each side.
A senior US administration official said a draft document was in place that both sides liked, while Iran’s foreign ministry spokesperson said Tehran’s decision-making bodies were convening to review the memorandum.
Pakistan, which has spent weeks trying to mediate, said the final text of a peace agreement between Washington and Tehran had been agreed.
“Pakistan is now working closely with both sides to finalise the next steps,” Prime Minister Shehbaz Sharif said in a post on X.
US President Donald Trump, meanwhile, pushed back against reports describing a proposed memorandum that, according to Western, Pakistani and Iranian sources, appeared to tilt heavily in Iran’s favour.
Mr Trump said those accounts were wrong.
Although the various descriptions differed in small ways, they generally portrayed Tehran as securing much of what it has sought, with Mr Trump seemingly gaining little beyond the reopening of the Strait of Hormuz, which Iran closed after US and Israeli attacks in February.
A senior US administration official disputed that framing, saying the draft was explicit on reopening the strait and on the removal of enriched nuclear material.
The official said Iran would receive significant sanctions relief depending on its performance under any agreement.
Drafts and accounts of the memorandum were shared with Reuters by Western sources, sources from mediator Pakistan, and senior Iranian sources, and were also reported in Iranian media.
All the sources emphasised the text was still not final. A Western source, an Iranian source and a Gulf source said one major sticking point remained: the wording on halting hostilities in Lebanon. Iran has demanded that Israel end its campaign against Iran’s allies, the Hezbollah militia.
As described in the accounts, the emerging agreement would also mark a shift from Washington’s earlier stance, appearing to accept the core terms Tehran proposed two months ago during initial face-to-face talks — terms the United States had previously rejected repeatedly.
In a social media post, Mr Trump did not specify what he said was wrong in the reporting, but wrote: “The terms that Iran leaked out to the fake news have nothing to do with the terms that were agreed to, in writing.”
Donald Trump reposted the Iranian foreign minister’s post
“Very dishonorable people to deal with,” he said of the Iranians.
Mr Trump later posted on Truth Social an image of an X post from Iranian Foreign Minister Abbas Araghchi in which he said a “Memorandum of Understanding has never been closer”.
Under the terms described by sources to Reuters, the United States would immediately release billions of dollars in Iranian assets that had been frozen and would waive sanctions on Iran’s oil exports. In exchange, Iran would lift its blockade of the Strait of Hormuz, which has been largely closed since the war began.
The accounts said the most contentious US demands involving Iran’s nuclear programme would be postponed, to be addressed later during a 60-day window of talks aimed at a final settlement. For now, the only direct reference to nuclear policy would restate Iran’s long-standing pledge not to pursue nuclear weapons — a commitment it first made when it ratified the UN Non-Proliferation Treaty in 1970.
The drafts, as described, included major US concessions as well: discussions of hundreds of billions of dollars in potential war reparations to Tehran, and the abandonment of long-held demands to restrict Iran’s missile programme.
Washington has previously insisted Iran surrender its stockpiles of highly enriched uranium. But none of the versions reviewed by Reuters contained that demand, and sources said it had been expressly excluded for now.
A Western source said that if negotiators can bridge the remaining language disputes, the memorandum could be signed as soon as Sunday by US Vice President JD Vance and Iran’s parliament speaker, Mohammad Baqer Qalibaf, with Geneva currently viewed as the most likely location.
Despite having joined the United States in launching the war, Israel has not been included in the talks. Prime Minister Benjamin Netanyahu has said Israel would not be a party to the memorandum.
Mr Netanyahu has also clashed repeatedly with Mr Trump in recent weeks over US pressure for Israel to curb its military operations in Lebanon to allow Washington to secure an agreement with Tehran.
Watch: Donald Trump announces a ‘great settlement’ with Iran
Trump calls off strikes
The draft agreement surfaced after a volatile week that brought the sharpest escalation in the Gulf since a ceasefire halted US and Israeli strikes on Iran.
Israel and Iran exchanged fire for the first time since that ceasefire, and Washington then carried out two days of attacks on Iran, prompting retaliatory strikes on US bases in the region.
Mr Trump said yesterday he had abruptly called off plans for larger new strikes because the deal was ready.
“We just made a great settlement of the war with Iran,” Mr Trump told reporters at the White House.
His announcement helped lift global share markets and pushed oil prices lower.
Brent crude fell more than 3% to its lowest level in almost two months.
Still, throughout the conflict Mr Trump has repeatedly declared that an agreement was imminent, only for talks to stall and no deal to appear.
When he entered the war alongside Israel, Mr Trump said the main objectives were to destroy Iran’s nuclear programme and its ability to attack neighbouring states, and to make it easier for Iranians to topple their government.
Those goals have not been met. But reopening the Strait of Hormuz could restore commercial traffic in the Gulf to pre-war patterns, easing what has been described as the most severe disruption ever to global energy supplies.
“The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” Mr Trump said, adding that Mr Vance would attend any signing. He gave no further details.
Asked whether Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal, Mr Trump replied: “I understand the answer is yes”.
Iran has blocked traffic through the Strait of Hormuz
US forces down two Iranian drones
Even with negotiations advancing, tensions around the Strait of Hormuz remained elevated. A US official said yesterday that American forces shot down two Iranian one-way attack drones after Tehran attempted to strike commercial ships using the strategic waterway.
Iran’s military also stopped a tanker from passing through the strait, state media reported, adding that explosions were heard early today.
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The war has created a growing political problem for the White House, with polling showing Mr Trump’s approval ratings falling as voters react to higher gasoline prices.
Some Republicans have publicly warned that the conflict’s unpopularity could jeopardise the party’s chances of keeping control of Congress in November’s midterm elections.
At the same time, many prominent Republicans have long taken hawkish stances on Iran, potentially complicating support for any agreement that is seen as granting Tehran sweeping concessions.
Iran, which has consistently said its nuclear programme is peaceful, previously agreed to strict limits in exchange for sanctions relief under a 2015 accord negotiated under then-US President Barack Obama.
Mr Trump pulled the United States out of that deal during his first term in 2018, arguing it was too lenient. Iran then expanded uranium enrichment, producing more than 400kg enriched to near weapons-grade levels — material that remains unaccounted for.
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