Bloomberg reported on Friday that the US and Iran are edging closer to signing an agreement to reopen the Strait of Hormuz as the Group of Seven world leaders are set to meet next week, according to senior officials.
A senior Iranian official indicated overnight that a deal is likely, said a G7 official, who asked not to be named discussing sensitive matters.
Another G7 official said it will likely take the form of a memorandum of understanding, rather than a final deal, according to Bloomberg.
The 52nd G7 Summit is a scheduled annual summit to be held on 15–17 June 2026 in Évian-les-Bains, Haute-Savoie, France.
President Trump claimed on Thursday that Washington and Tehran were on the verge of signing a peace agreement, and announced that he was cancelling fresh missile strikes, after two days of escalating attacks on Iran that threatened to collapse the fragile ceasefire.
His comments followed a new bout of public diplomacy by social media, but were dismissed by Iran’s foreign ministry, which said a final decision on an agreement had not been reached.
“Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening,” Trump wrote on Truth Social, the social network he owns.
In tandem, a Western source told Reuters on Friday that a memorandum between the United States and Iran to halt the war in the Gulf could be signed as soon as Sunday, with Geneva emerging as the likeliest venue.
The source said language in the memorandum was still being finalised and Iran was sticking to its position that the deal must also end fighting in Lebanon, where Israel has been battling against the Iran-backed Hezbollah militia.
The aim was to finalize the wording by Saturday so the agreement could be signed by U.S. Vice President JD Vance and Iran's Parliament Speaker Mohammed Baqer Qalibaf. No venue had been established, but Geneva was emerging as the likeliest.
A diplomatic source told CNN that an interim deal between the US and Iran would extend the ceasefire, reopen the Strait of Hormuz, and pave the way for talks on Iran’s nuclear program. The source said the two sides agreed on the text of the memorandum of understanding, but it has yet to receive final signoff.
A signing ceremony would most likely be held in Geneva, Switzerland, sources say — and it could take place as early as Sunday. Sources told CNN US military and security personnel are also planning for another round of peace talks this weekend amid the push for a deal.
Iranian state media outlets reported earlier Friday on the contours of the deal, including that Iran would not commit to ceding management of the Strait of Hormuz and that the agreement would demand the release of $24 billion of Iran’s frozen funds.
"Iran makes no commitment in this text to cede the management of the strait or the restoration of conditions that existed before the American and Israeli military aggression," according to the official IRNA news agency, which referred to "the broad outlines of the current text" being finalized.
However, on Friday, President Trump decried Tehran as “dishonourable” for what he said were inaccurate descriptions of the proposal.
“The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing,” Trump wrote on Truth Social.
“What they said, including their weak and pathetic statement on having a deal, bears no relation to the truth,” he went on. “Very dishonorable people to deal with. With them, there is no such thing as dealing in good faith.”
Trump, in his message, said Iran’s continued targeting of ships in the strait was “TOTALLY UNACCEPTABLE.”
“They better get their act together, and FAST!” he said.
Meanwhile, a leading Hezbollah politician said on Friday his Lebanese group is confident that Iran will insist on Lebanon being included in a deal with the United States.
Iranian officials have repeatedly insisted on an end to the Israeli strikes in Lebanon as part of any wider agreement.
“If the agreement happens, we have complete confidence in the Islamic Republic ... we have confidence that it will insist on any agreement including the file of Lebanon,” Hassan Fadlallah, a Hezbollah politician, said in an excerpt of a speech broadcast by the group’s al-Manar TV.
The United States and Iran have "never been closer" to a deal on ending the war in the Middle East, Iranian Foreign Minister Abbas Araghchi said on Friday.
"The Islamabad Memorandum of Understanding has never been closer," Araghchi wrote on X, referring to the Pakistani capital which hosted previous US-Iran talks.
"Pending its finalization, the media should refrain from entering speculation about its content," he added.
"In line with our responsible and transparent approach, all details will be shared with the public in due course," Araghchi added.
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