Iran and US Close on Initial Deal, Tehran Says No Signing on Sunday

Iran said on Saturday 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 U.S. and Iran signalled on Friday that an agreement to end three months of war was close, with a U.S. 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 on Saturday 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.

Sharif suggested the initial deal could be signed on Sunday, 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,” Baghaei was quoted as saying.

“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 Sharif said on X: “We are closer to a peace deal than ever before.”

U.S. President Donald Trump did not immediately comment but reposted Sharif’s post.

The war began with U.S.-Israeli strikes on Iran on February 28. Iran then fired on U.S. 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, with Iran effectively blockading the Strait of Hormuz – a major artery for global oil supplies – and the U.S. 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 July 4 and conclude with his burial in his hometown, the northeastern holy city of Mashhad, on July 9, state media reported on Saturday.

What Is in the Deal?

Iranian Foreign Minister Abbas Araqchi said on Friday 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 U.S.,” he said on state television on Friday.

Hours after those remarks, U.S. 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. U.S. 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 U.S. naval blockade on Iranian ports, sources on all sides of the talks said. Negotiations over Iran’s nuclear program – Trump’s stated rationale for starting the war – would take place afterwards.

A U.S. official, speaking on condition of anonymity, told reporters on Friday that the deal met Trump’s core objectives and put negotiations “in a very, very good place”.

Draft terms described to Reuters by multiple sources indicate the U.S. 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 program would be addressed during a 60-day period of talks. The U.S. 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.

But Araqchi said that Iran, which sources said has not accepted the dismantling of its nuclear program, wanted to retain the uranium in diluted form.

The proposals also include discussion of possible war reparations for Tehran and dropping longstanding U.S. demands for limits on Iran’s missile program, the sources said. The U.S. official disputed that account.

Israel Not Party to Memorandum

Israeli Prime Minister Benjamin Netanyahu said his country would not be party to the agreement. He has clashed with Trump over U.S. demands that Israel curb military action in Lebanon to allow Washington to reach a deal with Tehran.

Araqchi said the agreement would end the war in Lebanon, implying an Israeli withdrawal from occupied areas.

Israel’s defense minister said it would not withdraw. A senior Israeli official said Israel expects to retain its freedom to act against threats.

(Reporting by Reuters bureaus; Writing by David Morgan, Andy Sullivan and Timothy Heritage; Editing by Sergio Non, Kim Coghill and Gareth Jones)

The post Iran and US Close on Initial Deal, Tehran Says No Signing on Sunday appeared first on GV Wire.