Iran's Foreign Ministry stated a memorandum of understanding with the U.S. will not be signed on Sunday, despite Pakistan's Prime Minister expecting a deal within 24 hours. The proposed agreement aims to end the ongoing war.
The potential deal between Iran and the U.S. could de-escalate regional tensions, reopen critical shipping lanes, and impact global energy prices. However, disagreements on key terms and Israel's non-participation highlight the complexities and potential fragility of any agreement.
Iran indicated on Saturday that a framework for a peace deal with the United States could be signed in the coming days, though it dismissed Pakistan's suggestion of a signing within 24 hours. Iranian Foreign Ministry spokesperson Esmaeil Baghaei stated that while the exact date for signing the memorandum of understanding is uncertain and not scheduled for Sunday, the possibility of it happening soon cannot be ruled out, citing hesitation from the other side.
This comes after both the U.S. and Iran signaled on Friday that an agreement to end the three-month war was close. A U.S. administration official confirmed that both sides had agreed on a text and that Washington anticipated signing an initial deal in the coming days. Pakistani Prime Minister Shehbaz Sharif had stated that the two nations had agreed on a framework and that Islamabad was preparing for an electronic signing, to be followed by technical talks next week.
The proposed memorandum of understanding reportedly includes reopening the Strait of Hormuz and lifting the U.S. naval blockade on Iranian ports. Draft terms suggest the U.S. would release billions of dollars in frozen Iranian assets and waive sanctions on its oil exports in return for Iran opening the strait. Negotiations concerning Iran's nuclear program are scheduled to take place afterward, though Iranian Foreign Minister Abbas Araqchi indicated that Iran wished to retain its uranium in diluted form, disputing U.S. accounts of dismantling the program.
Israeli Prime Minister Benjamin Netanyahu stated that Israel would not be a party to the agreement, despite clashes with President Trump over U.S. demands for Israel to curb military action in Lebanon. Araqchi suggested the agreement would end the war in Lebanon, implying an Israeli withdrawal, a move Israel's defense minister indicated would not occur.