Key facts
- President Donald Trump announced a deal to end the war with Iran is scheduled for Sunday.
- Pakistan's Prime Minister Shehbaz Sharif stated a peace deal is closer than ever.
- Iran's foreign ministry cautioned against commenting on the timing, stating the signing would not occur Sunday.
- The proposed deal includes reopening the Strait of Hormuz and lifting the US naval blockade.
- Draft terms suggest the US would release frozen Iranian assets and waive sanctions on oil exports.
- Israeli Prime Minister Benjamin Netanyahu stated his country would not be party to the agreement.
U.S. President Donald Trump and mediator Pakistan indicated on Saturday that an initial deal to end the war in the Middle East would be signed on Sunday, though Iran denied the signing would take place so soon. Pakistani Prime Minister Shehbaz Sharif stated that Islamabad was preparing for an electronic signing on Sunday, followed by technical-level talks next week, and that the sides were closer to a peace deal than ever before.
Trump also posted on social media that the deal was scheduled for Sunday and that the Strait of Hormuz would be immediately "open to all" after signing. However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei cautioned against commenting on the timing, stating the signing would not occur Sunday but that it could happen in the coming days.
A U.S. official described the deal as "great" and "very strong" but declined to confirm the timing. The war, which began on February 28 with U.S.-Israeli strikes on Iran, has caused global energy price spikes and thousands of deaths, primarily in Iran and Lebanon. Iranian Foreign Minister Abbas Araqchi noted the tentative agreement showed Iran had emerged stronger from the conflict.
Hours after Araqchi's remarks, U.S. forces shot down Iranian drones heading toward the Strait of Hormuz, which posed a threat to commercial traffic. The proposed memorandum of understanding includes reopening the strait and lifting the U.S. naval blockade, with negotiations over Iran's nuclear program to follow. Draft terms suggest the U.S. would release frozen Iranian assets and waive sanctions on its oil exports in return for Iran opening the strait. Iran's Fars news agency quoted Baghaei stating the release of frozen assets was integral to the agreement and that Iran would charge for services in the Strait of Hormuz, while also calling for an end to foreign military bases in the region.
Iran's nuclear program would be addressed in subsequent talks, with a U.S. official stating the agreement would lead to the dismantling of Iran's nuclear program. However, sources indicated Iran has not accepted this and wants to retain uranium in diluted form. Proposals also reportedly include war reparations for Tehran and dropping demands for limits on Iran's missile program, though a U.S. official disputed this. Israeli Prime Minister Benjamin Netanyahu stated Israel would not be party to the agreement, and its defense minister indicated Israel expects to retain freedom to act against threats. The war has also revived conflict between Israel and Hezbollah militants in Lebanon, with Araqchi stating the agreement would end the war there, implying an Israeli withdrawal, which Israel's defense minister stated would not occur.
Iran's supreme leader, Ayatollah Ali Khamenei, was killed in an airstrike on the first day of the war and replaced by his son, Mojtaba. Khamenei's funeral was reported to begin July 4 in Tehran and conclude July 9 in Mashhad.