U.S., Iran Move Closer to Peace Deal as Talks Continue Over War and Nuclear Programme

U.S. President Donald Trump and mediator Pakistan have announced that an initial framework aimed at ending the conflict in the Middle East could be finalized soon, although Iran has cautioned that no agreement is expected to be signed immediately.

Pakistani Prime Minister Shehbaz Sharif said the two sides had agreed on the framework of a peace deal and that preparations were underway for an electronic signing, followed by technical-level discussions in the coming days.

Trump also stated that an agreement with Iran was expected soon and said the Strait of Hormuz, a critical route for global oil supplies, would reopen to international shipping once the deal is implemented.

However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei urged caution regarding reports about the timing of the agreement.

“We will have to wait and see about the exact date of the signing of the memorandum of understanding, although it will not be tomorrow,” Baghaei said.

He added that while a deal could be reached in the coming days, uncertainty remains due to what he described as hesitation from the other side.

A U.S. official later described the proposed agreement as a strong deal but declined to provide details on the signing timeline.

The latest developments mark the closest the parties have come to an agreement since the conflict began on February 28 following joint U.S.-Israeli strikes on Iran. Sharif said both sides are now closer to peace than at any previous stage of the negotiations.

The conflict has significantly affected global energy markets and resulted in thousands of deaths, particularly in Iran and Lebanon, where fighting involving Iran-backed Hezbollah has intensified regional tensions.

Key Elements of the Proposed Agreement

Iranian Foreign Minister Abbas Araqchi said negotiations were still ongoing but noted that the draft agreement demonstrates that Iran has emerged from the conflict in a stronger position.

The proposed memorandum reportedly includes the reopening of the Strait of Hormuz and the lifting of the U.S. naval blockade that has restricted Iranian oil exports for months.

According to officials involved in the negotiations, the reopening of the strategic waterway and the lifting of restrictions would occur simultaneously as part of the first phase of the agreement.

The next stage would involve clearing maritime hazards from the strait and beginning discussions on Iran’s nuclear programme.

Frozen Assets and Sanctions Relief

Sources familiar with the negotiations say the agreement would allow the United States to begin releasing billions of dollars in frozen Iranian assets and ease sanctions on Iranian oil exports.

In return, Iran would reopen the Strait of Hormuz to international shipping.

Iranian officials have described the release of frozen assets as a key component of the agreement and indicated that Iran may continue charging service fees for vessels using the waterway.

The proposals also include discussions on possible war reparations and other long-standing issues between the two countries.

Nuclear Programme Remains a Major Issue

The draft agreement calls for a 60-day negotiation period focused on Iran’s nuclear programme.

U.S. officials maintain that the process should eventually result in the dismantling of Iran’s nuclear programme and the removal of its stockpile of highly enriched uranium.

Iran, however, has indicated that it wants to retain uranium in a diluted form and has not agreed to dismantle its nuclear infrastructure.

The issue remains one of the most significant challenges in the ongoing negotiations.

Israel Distances Itself from Agreement

Israeli Prime Minister Benjamin Netanyahu said Israel is not a party to the proposed agreement.

The announcement comes amid reported disagreements between Israel and the United States over military operations in the region and broader efforts to reach a diplomatic settlement with Tehran.

Iranian officials have suggested that the agreement could contribute to ending the conflict in Lebanon, while Israeli leaders insist they will retain the freedom to respond to any security threats.

Meanwhile, Iranian state media reported that funeral arrangements for former Supreme Leader Ayatollah Ali Khamenei, who was killed during the conflict, are scheduled to begin in Tehran on July 4 before his burial in the city of Mashhad on July 9.

Negotiators continue to work toward finalizing the agreement as efforts intensify to end the conflict, stabilize energy markets, and address longstanding disputes between Iran and the United States.