Key facts
- The US and Iran are nearing an agreement to potentially sign a deal to reopen the Strait of Hormuz.
- The potential agreement could be signed on the sidelines of the G7 summit in France or in Geneva as early as Sunday.
- The interim deal involves extending a ceasefire, releasing frozen Iranian funds, and lifting US blockades on Iranian ports.
- Iran insists on its right to enrich uranium and maintain control over the Strait of Hormuz.
- The conflict began with US-Israeli strikes on February 28, leading to a ceasefire in April, but sporadic violence has continued.
The United States and Iran are reportedly close to signing an interim agreement aimed at halting hostilities and reopening the Strait of Hormuz, a critical global shipping lane. President Donald Trump has indicated an imminent deal, suggesting it could be signed as early as this weekend or on the sidelines of the upcoming G7 summit in France.
According to senior officials and diplomats, the proposed agreement would extend the current ceasefire by approximately two months, facilitate the release of $24 billion in frozen Iranian assets, and lift the U.S. naval blockade on Iranian ports. In return, Iran would reopen the Strait of Hormuz, and further negotiations would commence regarding its nuclear program, with a 60-day period allocated for these talks.
However, Iran's official stance, as reported by IRNA news agency, is that no final decision has been made, and the country insists on its right to enrich uranium and maintain control over the Strait of Hormuz, terms that reportedly contradict Israeli reports. Israel, which is not a party to the memorandum of understanding, has reiterated that Iran will not possess nuclear weapons.
The conflict, which began with U.S.-Israeli strikes on February 28 and led to a ceasefire in April, has seen continued sporadic incidents, including the recent downing of two Iranian drones by U.S. forces near the Strait of Hormuz. The negotiation process itself is described as complex and slow-moving, relying on human couriers and delayed messages, contributing to the uncertainty surrounding the deal's finalization. Regional partners, including Saudi Arabia, Qatar, and the UAE, have reportedly approved the concept of the deal.