IRIA News

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The United States and Iran have signaled that they are on the verge of reaching a major agreement that could formally end months of conflict and reopen the strategically vital Strait of Hormuz.

According to officials from both countries, some final details of the deal remain under negotiation, but leaders on both sides have expressed optimism that an initial deal could be finalized within days.

Senior U.S. officials said Washington and Tehran have agreed on the text of a memorandum of understanding that would lay the foundation for ending hostilities and beginning broader negotiations on Iran’s nuclear program and regional security issues.

The agreement is expected to focus first on restoring maritime traffic through the Strait of Hormuz before addressing more complex political and security concerns.

Iranian Foreign Minister Abbas Araghchi also indicated that an agreement is close, telling state television that the latest draft demonstrates Iran’s strength following the conflict. He said the country remained hopeful that the deal would soon be signed, although some revisions could still be made before final approval.

Strait of Hormuz at the Center of the Deal

One of the most significant elements of the proposed agreement is the reopening of the Strait of Hormuz, one of the world’s most important energy corridors. Before the conflict, approximately 20% of global oil and liquefied natural gas shipments passed through the narrow waterway.

Iran effectively disrupted shipping through the Strait after the outbreak of war following U.S. and Israeli military strikes in late February. The closure contributed to concerns over global energy supplies and increased tensions across the Gulf region.

According to officials familiar with the negotiations, the memorandum would reopen the strait and lift the U.S. naval blockade affecting Iranian ports. Iranian officials have stated that Tehran, together with Oman, would continue to play a role in managing navigation through the waterway.

Despite progress toward an agreement, military tensions have not completely subsided. U.S. forces reportedly intercepted and destroyed multiple Iranian one-way attack drones approaching the Strait of Hormuz after determining they posed a threat to commercial shipping. U.S. Central Command later confirmed the action and emphasized that the waterway remains open for international transit.

Nuclear Negotiations to Follow

The proposed agreement would not immediately resolve disputes over Iran’s nuclear program but instead launch a 60-day negotiating process focused on the issue.

U.S. officials said their long-term objective remains the dismantling of Iran’s nuclear capabilities, including the destruction and removal of highly enriched uranium stockpiles under an international inspection regime designed to ensure compliance.

Iran, however, has signaled a different preference. Foreign Minister Araghchi stated that Tehran wants to retain its uranium after converting it into less enriched material through a process known as down-blending rather than eliminating it.

For decades, Western governments have accused Iran of seeking to develop nuclear weapons, allegations Tehran has consistently denied while insisting that its nuclear activities are intended for peaceful purposes such as electricity generation and scientific research.

Economic Incentives Linked to Compliance

The draft agreement reportedly includes significant economic incentives for Iran, though U.S. officials stressed these benefits would be provided only after Tehran fulfills its commitments.

Among the measures under discussion are the gradual lifting of sanctions on Iranian oil exports and the phased release of billions of dollars in frozen Iranian assets. American officials emphasized that no funds would be released in advance and described the arrangement as a performance-based agreement rather than one built on trust.

According to the U.S. administration, Iran would receive economic relief only after verified implementation of agreed measures, including reopening the Strait of Hormuz and addressing concerns over regional activities.

Iranian sources have suggested that broader discussions may also include possible war reparations and other economic measures, although U.S. officials disputed reports that Washington had agreed to abandon demands related to Iran’s missile program.

Pakistan and Qatar Play Mediation Roles

Pakistan and Qatar have played important roles in facilitating discussions between Washington and Tehran.

Pakistani Prime Minister Shehbaz Sharif announced that the memorandum of understanding had been agreed upon in principle and was awaiting finalization. Iranian officials also confirmed that the proposed agreement has supporters and opponents within Iran’s leadership but indicated that a final decision could come soon.

According to Iranian officials, the agreement may ultimately be signed remotely before being publicly announced, although Western sources have suggested that an in-person signing ceremony in Europe remains under consideration.

Israel Remains Outside the Negotiations

Israel has not participated in the negotiations and has made clear that it is not a party to the proposed agreement.

Israeli Prime Minister Benjamin Netanyahu has indicated that his government will continue taking military action against threats from Hezbollah and other hostile groups regardless of any U.S.-Iran understanding. Israeli officials have also rejected suggestions that the agreement would require an Israeli withdrawal from contested areas in Lebanon.

Iranian officials have argued that the deal could help reduce regional tensions and potentially contribute to ending fighting involving Hezbollah, though Israeli leaders have not endorsed that position.

Markets React Positively

Financial markets responded positively to reports that a breakthrough may be near. Global stock markets advanced while oil prices declined as investors anticipated reduced risks to energy supplies.

Brent crude prices fell by more than 3%, reaching their lowest levels in nearly two months, reflecting growing confidence that commercial shipping through the Strait of Hormuz may soon normalize.

The potential agreement also carries domestic political implications in the United States. Rising fuel prices and continued instability in the Gulf have placed pressure on the White House, while some Republican lawmakers have expressed concern that an agreement perceived as too favorable to Iran could become politically controversial ahead of upcoming elections.

Despite lingering disagreements over specific provisions, officials from both countries have expressed cautious optimism. If finalized, the agreement would mark the most significant diplomatic breakthrough between Washington and Tehran since the conflict began and could pave the way for broader negotiations on nuclear issues, regional security, and economic relations.