A breakthrough to end the war between the United States and Iran appeared within reach on Saturday, as both governments signaled they are nearing an agreement and a senior US administration official said the two sides have already settled on a text, with Washington expecting to sign an initial deal in the coming days.
Iranian Foreign Minister Abbas Araqchi said a final version was not yet locked in, noting changes were still possible, but he portrayed the tentative agreement as evidence that Iran had come out of the conflict stronger.
“Iran is the winner of the war with the US,” he said on state television.
Those remarks were followed, hours later, by fresh military action near one of the world’s most important shipping lanes. US forces shot down multiple Iranian one-way attack drones headed toward the Strait of Hormuz, a source familiar with the matter told journalists.
The source, speaking on condition of anonymity, said the drones posed a threat to commercial traffic.
US Central Command later confirmed the action and said the waterway was open for transit.
Meanwhile, Iranian news agencies reported that explosions were heard along the strait near Iran’s Sirik port and Qeshm island. Residents and local officials attributed the blasts to warning shots fired by Iranian forces at vessels attempting to cross without permission from the Revolutionary Guards’ navy.
Sources on all sides of the talks said the proposed memorandum of understanding would reopen the strait and lift the US naval blockade on Iranian ports.
Abbas Araghchi said Iran would retain control of traffic through the Strait of Hormuz
Negotiations over Iran’s nuclear program — US President Donald Trump’s stated rationale for starting the war — would take place afterward.
The US official, who also spoke on condition of anonymity, told reporters the draft met Mr Trump’s core objectives and put the negotiations “in a very, very good place.”
Descriptions of the draft proposal from Western, Pakistani and Iranian sources suggested terms that could tilt in Iran’s favor, prompting criticism directed at Mr Trump, who rejected those reports as inaccurate.
Even with minor differences in the details, the broad outlines described by the sources would grant Tehran much of what it has long sought, while Mr Trump appeared to secure little beyond reopening the strait — a route Iran shut after US and Israel strikes in February.
Mr Araqchi said Iran, along with Oman, would retain control of traffic through the strait, which before the war carried one-fifth of the world’s oil and gas supply.
“Our sword will always hang over the Strait of Hormuz,” he said.
A Western source said the agreement could be signed as soon as Sunday by US Vice President JD Vance and Iran’s parliament speaker, Mohammad Baqer Qalibaf, with Geneva seen as the likeliest venue.
The US administration official said Europe had been discussed as a venue for signing but no decision had been made.
Mr Araqchi said the deal would be signed remotely before it is announced.
What is in the deal?
Draft terms described to Reuters by multiple sources indicate the US would begin releasing billions of dollars in frozen Iranian assets and waive sanctions on Iran’s oil exports, in exchange for Tehran reopening the strait.
Iran’s nuclear program would then be taken up during a 60-day period of talks.
The US official said the agreement would ultimately lead to the dismantling of Iran’s nuclear program, with its stockpile of highly enriched uranium to be destroyed and removed.
The terms also include an inspection regime to ensure compliance over the long term.
People from Tehran gather in support of Iranian Supreme Leader Mojtaba Khamenei
Mr Araqchi, however, told state television that Iran — which sources said has not accepted dismantling its nuclear program — wants to keep the uranium in diluted form.
“For Tehran, the only preferred solution for its highly enriched uranium stockpile is down-blending the material,” he said.
According to the sources, the proposals also include discussion of possible war reparations for Tehran and dropping longstanding US demands for limits on Iran’s missile program. The US official disputed that account.
“None of their money released until they perform. Strait of Hormuz will be open. No Iran funding of terrorist groups,” said the official, speaking on condition of anonymity. “This is what they have agreed to. This is a performance-based deal.”
Israel not party to memorandum
Israel has not taken part in the negotiations, and Prime Minister Benjamin Netanyahu said his country would not be party to the agreement.
Mr Netanyahu has clashed with Mr Trump in recent weeks over US demands that Israel curb military action in Lebanon so Washington can reach a deal with Tehran.
Mr Araqchi said the agreement would end the war in Lebanon, implying an Israeli withdrawal from occupied areas.
Israel’s defence minister said it would not withdraw. A senior Israeli official said Israel expects to retain its freedom to act against threats.
Oil prices fall
Momentum toward an agreement came after a week of sharply escalating hostilities in the Gulf, including Israeli-Iranian exchanges of fire, US strikes on Iranian targets, and retaliation against US bases.
Markets reacted quickly to the prospect of de-escalation. Global stock markets rose and oil prices fell.
Brent crude prices were down more than 3% at their lowest in nearly two months.
Iran has blocked traffic through the Strait of Hormuz
The conflict has become a political headache for the White House, amid rising fuel prices and slipping approval ratings for Mr Trump.
Some Republicans worry the war’s unpopularity could cost them control of Congress in November’s midterm elections.
However, many of Mr Trump’s fellow Republicans may have difficulty endorsing an agreement viewed as too favorable to Iran.
