The US and Iran have signalled an agreement to end the war is close and the US expects to sign an initial deal in the coming days.
Iran has said it could sign the framework for a peace deal with the United States in the coming days, but dismissed a suggestion by mediator Pakistan that it would be signed within the next 24 hours. The US and Iran signalled yesterday that an agreement to end three months of war was close, with a US administration official saying both sides had agreed on a text and that Washington expected to sign an initial deal in the coming days. Pakistani Prime Minister Shehbaz Sharif said the two sides had agreed on a framework for a peace deal and Islamabad was preparing for an electronic signing to be followed by technical-level talks next week. Mr Sharif suggested the initial deal could be signed tomorrow, but Iranian Foreign Ministry spokesperson Esmaeil Baghaei was later quoted by state media as saying caution was needed when commenting on the timing. "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," Mr Baghaei was quoted as saying. He added: "The possibility of this happening in the coming days cannot be ruled out. "However, due to the hesitation of the other side, we must be cautious in making any comments about this process." The two sides have repeatedly appeared close to an initial agreement on ending the war without signing a deal, but Mr Sharif said on X: "We are closer to a peace deal than ever before." US President Donald Trump did not immediately comment but reposted Mr Sharif's post. The war began with US-Israeli strikes on Iran on 28 February. Iran then fired on US military targets in the Gulf and Hezbollah militants in Lebanon fired at Israel, triggering a renewal of conflict between Israel and the Iran-aligned group. The war has killed thousands of people, mostly in Iran and Lebanon, and sent global energy prices sharply higher. Iran has effectively blockaded the Strait of Hormuz - a major artery for global oil supplies - and the US blocking Iranian ports. Iran's supreme leader Ayatollah Ali Khamenei was killed in an airstrike on the first day of the war and later replaced as supreme leader by his son Mojtaba. Khamenei's funeral will begin in Tehran on 4 July and conclude with his burial in his hometown, the northeastern holy city of Mashhad, on 9 July, state media reported. Iranian Foreign Minister Abbas Araqchi said yesterday that while changes in the deal were still possible, the tentative agreement showed his country had emerged stronger from the conflict. "Iran is the winner of the war with the US," he said on state television. Hours after those remarks, US forces shot down multiple Iranian one-way attack drones heading toward the Strait of Hormuz, a source familiar with the matter told Reuters. The source, who spoke on condition of anonymity, said the drones had posed a threat to commercial traffic. US Central Command later confirmed the action and said the waterway was open. The proposed memorandum of understanding calls for reopening the strait and lifting the US naval blockade on Iranian ports, sources on all sides of the talks said. Negotiations over Iran's nuclear programme – Mr Trump's stated rationale for starting the war- would take place afterwards. A US official, speaking on condition of anonymity, told reporters yesterday that the deal met Mr Trump's core objectives and put negotiations "in a very, very good place". 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 its oil exports, in return for Iran opening the strait. Iran's nuclear programme would be addressed during a 60-day period of talks. The US official said the agreement would ultimately lead to the dismantling of Iran's nuclear programme, with its stockpile of highly enriched uranium to be destroyed and removed. But Mr Araqchi said that Iran, which sources said has not accepted the dismantling of its nuclear programme, wanted to retain the uranium in diluted form. The proposals also include discussion of possible war reparations for Tehran and dropping longstanding US demands for limits on Iran's missile programme, the sources said. The US official disputed that account. Israel has not been part of 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 to allow Washington to 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. Progress towards an agreement emerged at the end of a week that brought a sharp escalation in hostilities in the Gulf, including Israeli-Iranian exchanges of fire and US strikes on Iranian targets, followed by retaliation against US bases. Global stock markets rose and oil prices fell on the news. Brent crude prices were down more than 3% at their lowest in nearly two months. 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 that 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 favourable to Iran.
