A tentative accord to halt the war between the United States and Iran is edging closer, senior officials said, even as fresh military activity flared near the Strait of Hormuz — the strategic waterway at the centre of the negotiations.
A senior US official said both countries had agreed to a text and that Washington expects to sign an initial deal within days.
Iranian Foreign Minister Abbas Araqchi said the draft still could change, but argued it already reflected Iran’s strengthened position after the conflict.
“Iran is the winner of the war with the US,” he said on state television.
Not long after those comments, a source said US forces shot down multiple Iranian one-way attack drones heading toward the Strait of Hormuz.
The source, speaking on condition of anonymity, said the drones had posed a threat to commercial traffic.
US Central Command later confirmed the intercepts and said the waterway remained open for transit.
Separately, Iranian news agencies reported explosions along the strait near Iran’s Sirik port and on Qeshm island. Residents and local officials attributed the sounds to shots fired by Iranian forces as warnings to 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
Talks on Iran’s nuclear programme — which US President Donald Trump has cited as his reason for initiating the war — would follow.
The US official, who also spoke on condition of anonymity, told reporters the arrangement fulfilled Mr Trump’s core aims and placed subsequent negotiations “in a very, very good place.”
But accounts of the draft from Western, Pakistani and Iranian sources described terms that could tilt toward Tehran, prompting criticism of Mr Trump. He rejected those reports as inaccurate.
Although sources differed on some particulars, the broad outlines as described would give Tehran many of its longstanding demands, while Mr Trump appeared to secure little beyond reopening the strait — which Iran shut after US and Israeli strikes in February.
Mr Araqchi said Iran, working with Oman, would keep control of traffic through the waterway, 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 deal could be signed as soon as tomorrow by US Vice President JD Vance and Iran’s parliament speaker, Mohammad Baqer Qalibaf, with Geneva viewed as the most likely location.
The US administration official said Europe had been discussed as a signing venue but that no decision had been made.
Mr Araqchi said the deal would be signed remotely before it is announced.
What is in the deal?
Multiple sources described draft terms to Reuters indicating the United States would start 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 programme would then be taken up in a 60-day negotiating period.
The US official said the agreement would ultimately result in Iran’s nuclear programme being dismantled, including the destruction and removal of its stockpile of highly enriched uranium.
The draft also includes a long-term inspection regime designed to ensure compliance.
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 programme — 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.
Sources said the proposals also cover potential war reparations for Tehran and the possible removal of long-standing US demands to limit Iran’s missile programme. The US official disputed that description.
“None of their money released until they perform. Strait of Hormuz will be open. No Iran funding of terrorist groups,” said the official, who spoke 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 participated in the negotiations, and Prime Minister Benjamin Netanyahu said Israel would not be party to the agreement.
In recent weeks, Mr Netanyahu has clashed with Mr Trump over US pressure on Israel to scale back military action in Lebanon so Washington can reach a deal with Tehran.
Mr Araqchi said the agreement would end the war in Lebanon, implying Israel would withdraw from occupied areas.
Israel’s defence minister said Israel would not withdraw. A senior Israeli official said Israel expects to retain freedom to act against threats.
Momentum toward an agreement surfaced after a week of sharply escalating conflict in the Gulf, including exchanges of fire between Israel and Iran and US strikes on Iranian targets, followed by retaliation against US bases.
Financial markets reacted quickly: global stocks advanced and oil prices dropped on the news.
Brent crude prices fell more than 3% to their lowest level in nearly two months.
Iran has blocked traffic through the Strait of Hormuz
The war has also become a political problem for the White House as fuel prices climb and Mr Trump’s approval ratings slip.
Some Republicans have warned that the conflict’s unpopularity could threaten their hold on Congress in November’s midterm elections.
Even so, many of Mr Trump’s fellow Republicans could struggle to back a deal seen as overly generous to Iran.
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