US and Iran Signal Peace Deal

 

US and Iran Signal Peace Deal Is Near as Tehran Claims Victory

The United States and Iran signaled on Friday that they are close to reaching an agreement to end their conflict, with a senior U.S. administration official saying both sides have agreed on a draft text and that Washington expects an initial deal to be signed within days.

Iranian Foreign Minister Abbas Araqchi said some details remain under discussion but argued that the tentative agreement demonstrates Iran’s strength following the war.

“Iran is the winner of the war with the U.S.,” Araqchi said in an interview on state television.

According to sources involved in the negotiations, the proposed memorandum of understanding would reopen the Strait of Hormuz and end the U.S. naval blockade of Iranian ports. Talks on Iran’s nuclear program—the issue cited by U.S. President Donald Trump as the reason for launching military action—would continue after the agreement takes effect.

A senior U.S. official, speaking on condition of anonymity, said the draft deal fulfills Trump’s main objectives and places negotiations “in a very, very good place.”

However, reports from Western, Pakistani, and Iranian sources suggest that several provisions may favor Tehran, prompting criticism from some quarters. Trump rejected those accounts, describing them as inaccurate.

Although details vary among different reports, the broad framework appears to grant Iran many of its key demands while securing the reopening of the Strait of Hormuz, which Tehran closed following U.S. and Israeli strikes earlier this year.

Araqchi said Iran, together with Oman, would continue to oversee traffic through the strategically important waterway, which previously carried about one-fifth of the world’s oil and natural gas supplies.

“Our sword will always hang over the Strait of Hormuz,” he said.

Iranian media reported that explosions and warning shots were heard near Sirik Port and Qeshm Island on Saturday. Local officials said Iranian forces fired warning shots at vessels attempting to pass through the strait without authorization from the Revolutionary Guards Navy.

Key Elements of the Proposed Deal

Sources familiar with the draft agreement said the United States would begin releasing billions of dollars in frozen Iranian assets and ease sanctions on Iran’s oil exports in exchange for the reopening of the Strait of Hormuz.

The two sides would then enter a 60-day period of negotiations on Iran’s nuclear program. According to the U.S. administration official, the ultimate goal remains the dismantling of Iran’s nuclear program, including the removal and destruction of its stockpile of highly enriched uranium under a strict international inspection regime.

Iran, however, appears to favor a different approach.

Araqchi said Tehran wants to retain its uranium stockpile in diluted form rather than surrender it completely.

“For Tehran, the preferred solution is down-blending the highly enriched uranium,” he said.

The draft proposals also reportedly include discussions on potential war reparations for Iran and the removal of longstanding U.S. demands regarding restrictions on Iran’s missile program. The U.S. official disputed those claims.

“No money will be released until Iran fulfills its obligations. The Strait of Hormuz will be open, and there will be no Iranian funding of terrorist groups,” the official said. “This is a performance-based agreement.”

Israel Not Involved in Negotiations

A Western diplomatic source said the agreement could be signed as early as Sunday by U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammad Baqer Qalibaf, with Geneva considered the most likely location.

Araqchi, however, said the agreement would be signed remotely before being formally announced.

The U.S. official confirmed that Europe had been discussed as a possible venue, though no final decision had been made.

Israel, which participated alongside the United States in military operations against Iran, has not taken part in the negotiations. Israeli Prime Minister Benjamin Netanyahu said his government would not be a party to the agreement.

Tensions have reportedly grown between Netanyahu and Trump in recent weeks over U.S. efforts to reduce regional hostilities, particularly in Lebanon, to facilitate a broader diplomatic settlement with Tehran.

Araqchi suggested the agreement could also help bring an end to the conflict in Lebanon, potentially paving the way for an Israeli withdrawal from disputed areas.

Israel’s defense minister rejected that possibility, while a senior Israeli official said Israel expects to maintain freedom of action against perceived security threats.

Markets React Positively

News of progress toward a deal came after a week of escalating military exchanges between Iran, Israel, and the United States, including strikes on Iranian targets and retaliatory attacks against U.S. bases in the region.

Financial markets responded positively. Global stock markets advanced, while oil prices fell sharply. Brent crude dropped more than 3 percent, reaching its lowest level in nearly two months.

The conflict has created political challenges for the White House, with rising fuel prices and declining approval ratings adding pressure on President Trump.

Some Republicans fear that public dissatisfaction with the war could hurt the party’s prospects in November’s congressional midterm elections. At the same time, others may find it difficult to support an agreement they perceive as overly favorable to Iran.

Iran has long maintained that its nuclear program is intended for peaceful purposes. Under the 2015 nuclear agreement negotiated during the administration of former President Barack Obama, Tehran accepted strict limits on its nuclear activities in exchange for sanctions relief.

Trump withdrew the United States from that deal in 2018. Since then, Iran has significantly expanded its uranium enrichment activities, accumulating more than 400 kilograms of uranium enriched to levels close to weapons-grade purity.