FILE- Iranian delegation led by the speaker of Iran’s parliament, Mohammad Bagher Ghalibaf, second from right; and Foreign Minister Abbas Araghchi, second from left, arrives in Islamabad. Pakistan's Foreign Ministry of Affairs.
While a US administration official confirmed Europe had been discussed as a possible location for the signing, they noted that no final decision had been made.
The developments follow signals from both the United States and Iran on Friday that an agreement to end their war was close. US and regional officials stated that a text has been agreed upon and that Washington expects to sign an initial deal in the coming days.
The proposed memorandum of understanding reportedly includes the reopening of the Strait of Hormuz and the lifting of the US naval blockade on Iranian ports. Negotiations over Iran’s nuclear programme, which US President Donald Trump has cited as the main reason for the conflict, would take place in a later phase.
According to Reuters, accounts of the draft proposal from Western, Pakistani, and Iranian sources suggest terms that could favour Iran. This has already prompted sharp criticism from Trump, who dismissed the reports as inaccurate.
While details vary, the proposals broadly appear to grant Tehran many of its core demands. In contrast, Washington appears to have secured limited gains beyond the reopening of the strait, which Iran closed following the launch of the US-Israeli war on the Islamic Republic on 28 February.
Draft terms described to Reuters by multiple sources indicate the United States would begin releasing billions of dollars in frozen Iranian assets and ease sanctions on Iranian oil exports in exchange for the reopening of the waterway.
Tehran claims victory
Iran’s Foreign Minister Abbas Araghchi said an understanding with the United States could be announced in the coming days, though he stressed that no final agreement has been reached.
However, Araghchi struck a triumphant tone regarding the conflict, stating that the Islamic Republic had emerged as the “sole party to come out victorious” in the unprovoked US-Israeli aggression, calling the outcome a “major strategic achievement.”
“Iran is the winner of this war,” Araghchi told state television.
He added that the talks were in their final stages and based on a 14-point MoU discussed in the media, though he stressed the document remained subject to change. He noted that multiple drafts had been reviewed within Iran’s decision-making institutions, including the Supreme National Security Council.
Two-phase structure
According to Araghchi, the diplomatic process is divided into two stages, namely realization of an initial MoU between Iran and the United States, and a second phase that is expected to feature negotiations leading to a potential final agreement.
The official stated that Iran’s frozen assets would be released upon signing the memorandum and noted that the signing could take place digitally within days.
Iran’s nuclear program would be addressed in a subsequent 60-day negotiation phase. A US official stated that the agreement would ultimately require the dismantling of Iran’s nuclear programme, including the removal and destruction of its highly enriched uranium stockpile, alongside an international inspection regime to ensure compliance.
However, Araghchi offered a different emphasis, stating that Iran’s position on the highly enriched uranium is that it should be diluted exclusively inside the Islamic Republic as the only viable option.
The proposals reportedly include discussion of possible war reparations for Tehran and the removal of longstanding US restrictions on Iran’s missile programme, though a US official disputed that account.
"None of their money is released until they perform. Strait of Hormuz will be open. No Iran funding of terrorist groups," the US official, speaking on condition of anonymity, said. "This is what they have agreed to. This is a performance-based deal."
Lebanon and the Strait of Hormuz
The proposed framework aims for a sweeping cessation of regional violence. Under the agreement, hostilities would end across all fronts, including Lebanon, with both sides agreeing not to initiate war or use force, Araghchi said.
The Iranian Foreign Minister added that any final settlement would require Israel’s withdrawal from areas it occupies in Lebanon.
Israel is notably not part of the negotiations. Israeli Prime Minister Benjamin Netanyahu has explicitly stated that his country will not be bound by any agreement. Netanyahu has recently clashed with Trump over US pressure on Israel to limit military operations in Lebanon to support diplomatic efforts with Tehran.
Regarding the strategic waterway, Araghchi said that Iran and Oman are currently finalizing a joint legal and operational framework to manage transit through the Strait of Hormuz, with an announcement expected within 60 days. Iran’s armed forces would remain responsible for security in the waterway.
The lifting of broader US sanctions would also be addressed in the second phase of negotiations, according to Araghchi. He stated that this phase is expected to last 60 days but could be extended if progress is made. He warned, however, that a failure to reach an agreement would return the situation to its previous state.
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