Iran has contradicted Donald Trump’s claims that a peace deal between Washington and Tehran is ready to be signed as soon as this weekend, with the foreign ministry insisting that no final conclusion has been reached and that the text remains under review by the country’s decision-making bodies.
Esmaeil Baghaei, the Iranian foreign ministry spokesperson, said that while large parts of the text under negotiation had been finalised, “a final conclusion” had not been reached. “This is a very important issue that is currently being reviewed by the relevant decision-making bodies,” he said, adding that Tehran would not compromise on its red lines. The caution came hours after Trump told reporters at the White House: “We just made a great settlement of the war with Iran.” The US president said the Strait of Hormuz would officially open “as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe”, and that Vice-President JD Vance could sign for the United States. Since mid-March, Trump has repeatedly claimed a deal with Iran was close, but no agreement has materialised.
Conflicting statements and regional reactions
Trump announced he was cancelling a third day of US airstrikes and bombings that he had earlier said would happen, because “discussions” with Iran “have been brought to the highest level of Iranian leadership and approved”. On social media he wrote that “discussions and final points have been, in both concept and great detail, approved by all parties involved, including the United States, Israel, Saudi Arabia, UAE, Qatar, Turkey, Pakistan, Bahrain, Kuwait, Jordan, Egypt, and others”.
Israel, however, said it was “not a party to” what Prime Minister Benjamin Netanyahu’s office described as an emerging memorandum of understanding between the US and Iran. The office said Netanyahu had spoken with Trump and that the final agreement at the conclusion of negotiations would include the removal of enriched material, the dismantling of enrichment infrastructure, limits on missile production, and the cessation of Iran’s support for its terrorist proxies in the region – measures that have been red lines for Iran in the past.
Iran’s official Islamic Republic News Agency (IRNA) cautioned against media speculation about a potential memorandum of understanding, particularly on claims regarding the Strait of Hormuz. IRNA reported that Iran will not surrender its control of the strategic waterway and the US will have no role in its future management. A translation of the report said: “Contrary to some bizarre claims in the media, Iran in no way makes a commitment in this text to hand over its management or to restore the strait of Hormuz to the state before the military aggression of the US and Israel. The only point mentioned is the normalisation of transit through the strait of Hormuz upon the end of the war, the establishment of maritime security by the coastal states, the end of the illegal blockade, and the removal of threats to commercial shipping by the US and Israel. At Iran’s request, the US will have no role whatsoever in the future management of the strait of Hormuz. It has been made clear that the future administration of the strait will be based on an Iranian initiative and proposal, within the framework of a matter pertaining to the countries of the region. In this framework, discussions about the future of the strait of Hormuz will not take place even in negotiations after the signing of the agreement, and Tehran will directly resolve this issue in talks with Oman.”
Pakistan’s foreign minister, Ishaq Daar, welcomed the “progress” made between the US and Iran, saying in a statement after a phone call with EU foreign policy chief Kaja Kallas that both sides “welcomed the progress achieved through sustained diplomatic engagement and expressed hope that these efforts will soon lead to a durable understanding and peaceful resolution”. Pakistan has positioned itself as a mediator between the US and Iran, with reports suggesting a possible initial agreement could be named the “Islamabad declaration” in recognition of its role. Turkey and Egypt have also been involved in mediation efforts. Trump separately claimed on social media that the US had been conducting a “secret mission” in the Strait of Hormuz, escorting dozens of tankers out of the blockaded channel at night with their transmitters off, and that 200 vessels had transported more than 100m barrels of oil to global buyers. Meanwhile, India’s government voiced a “strong protest” after three Indian seafarers were killed in US military strikes against oil tankers travelling through the strait.
The Israeli military continued to strike southern Lebanon on Friday, according to the Lebanese National News Agency, amid reports the US and Iran are nearing a deal to cease hostilities. A strike wounded ten staff members of a hospital in the Lebanese city of Tyre on Thursday, the facility’s director told the AFP news agency, as Israeli raids continued in the country’s south. All three of the historic city’s hospitals have been hit since the start of the latest war between Iran-backed Hezbollah and Israel in early March. The IDF said it struck 310 Hezbollah targets in southern Lebanon in the past week, claiming to have killed “80 terrorists”, and revealed it conducted a raid in the southern Lebanese village of Dibbine several weeks ago, locating “significant” weapon depots. It is unclear whether a potential US-Iran deal would include Lebanon, where Hezbollah has been demanding the withdrawal of Israeli troops, but American and Iranian media reports appear to suggest it will. A ceasefire agreed in April has largely collapsed.
Terms of the proposed deal
Iran’s semi-official Mehr news agency has published a list of 14 points that it says are in the draft memorandum of understanding with the US, citing a source close to the Iranian negotiating team. The details have not been confirmed publicly by either Tehran or Washington, and the report says the text is yet to be finalised by the Iranian leadership.
The reported terms include: a permanent and immediate cessation of war on all fronts, including Lebanon; a US commitment to non-interference in Iran’s internal affairs and respect for its sovereignty; the lifting of the US naval blockade within 30 days; the withdrawal of US forces from around Iran; reopening of the Strait of Hormuz within 30 days “with Iranian arrangements”; suspension of US sanctions on Iranian oil; US and allies drawing up reconstruction plans for Iran worth at least $300bn; 60 days of negotiations to reach a final agreement based on nuclear issues and the complete lifting of sanctions; reiteration of Iran’s commitment not to produce nuclear weapons; a pledge by the US not to increase its forces in the region or impose new sanctions during negotiations; release of $24bn in blocked Iranian funds; establishment of a monitoring mechanism to implement the agreement; final agreement to be approved by a UN Security Council resolution; and a condition that final negotiations will not begin before the release of half of Iran’s frozen funds, the suspension of oil sanctions and the lifting of the naval blockade. The report states that “discussions about Iran’s missile programme and support for resistance groups have been definitively removed from the agenda”.
American news outlet Axios reported that four US air force planes departed for Europe to prepare for a possible signing ceremony in Geneva, Switzerland, where Vice-President JD Vance is expected to sign on Washington’s behalf. Reports suggest the signing ceremony may happen ahead of or during the G7 summit that begins in Evian-les-Bains, France, on Monday. Trump had earlier posted on social media that the US would seize Iran’s Kharg Island “in the not too distant future”, but later said the seizure would be off the table “if we sign this agreement”.
The broader context of the negotiations involves Iran’s nuclear programme. Iran has been enriching uranium to levels significantly beyond the limits of the 2015 Joint Comprehensive Plan of Action (JCPOA), including to 60% purity, which is close to weapons-grade. While Tehran says its programme is peaceful, intelligence assessments indicate Iran is better positioned to produce nuclear weapons if it chooses. The JCPOA expired in October 2025, and Iran officially ended its commitments. The Strait of Hormuz, through which approximately 20% of global oil supply passes, has been a focal point of disruption, with the International Energy Agency describing the combined impacts of the conflict as “the greatest threat to global energy security in history”.
Market reaction
Global oil prices fell sharply on Friday to lows not seen since the first week of the Iran crisis after Trump’s claim that a deal was close. The price of Brent crude began to tumble from about $93 a barrel in overnight trade after the US president called off further military strikes against Iran. It traded briefly below $85 a barrel on Friday morning in fresh hope that a deal between the US and Iran could mean a reopening of the Strait of Hormuz over the weekend, and later traded at about $87.50, a 3% fall on the day. US West Texas Intermediate crude futures fell 1.9% to $86.08 a barrel, on top of a 2.6% drop overnight. “Headlines are driving the market once again, as confidence grows that an eventual deal will be struck and the strait reopens,” said Tamas Varga, an analyst at PVM Oil Associates. Asian stocks joined a global rally, with South Korea’s Kospi surging 7.4% and Japan’s Nikkei up 2.7%. The price of oil had risen earlier in the week after Trump threatened a “very hard” attack on Iran, before plunging hours later after he said he was cancelling the strikes. Iranian media said the country’s forces had stopped a “violating tanker” from entering the Strait of Hormuz, a report from the Fars news agency closely linked to Iran’s Revolutionary Guards that came shortly after the sound of explosions were reportedly heard near the port city of Bandar Abbas.
