US and Iran Signal Peace Deal Within Reach to End Three-Month War

The United States and Iran are on the verge of signing a landmark ceasefire agreement to halt a devastating three-and-a-half-month war that has choked global energy supplies and engulfed the Middle East.[1][3]

Following weeks of intense back-channel negotiations mediated by Pakistan and Oman, officials from both Washington and Tehran confirmed Friday that a final text for a Memorandum of Understanding is nearly complete.[3][5]

President Donald Trump announced from the Oval Office that the US had reached a "great settlement," suggesting a formal signing could take place in Europe as early as this weekend, potentially with Vice President J.D. Vance representing the United States.[6][7]

Iranian Foreign Minister Abbas Araghchi echoed the optimism, stating the two nations have "never been closer" to an agreement. Pakistani Prime Minister Shehbaz Sharif, a key mediator, went further, declaring on social media that an "agreed upon text of the peace deal has been reached."[2][5]

If finalized, the memorandum would establish a 60-day ceasefire and mandate the immediate reopening of the Strait of Hormuz. The strategic waterway, which handles roughly 20% of the world's oil and liquefied natural gas, has been effectively closed by Iranian forces since the conflict escalated in late February.[4][8]

The prospect of unblocking the strait sent immediate ripples through global markets. Oil prices, which had spiked dramatically during the conflict, fell to around $89 a barrel on Friday as traders priced in the de-escalation, while US equities rallied.[6]

Despite the mutual optimism, Washington and Tehran are already clashing over what the draft agreement actually stipulates. The conflicting narratives highlight the fragility of the truce before the ink is even dry.[2][5]

Senior US administration officials describe a strict, "performance-based" framework. Under this version, Iran must dismantle its nuclear infrastructure and destroy its stockpile of highly enriched uranium before receiving any sanctions relief or access to frozen funds.[1][5]

Conversely, Iranian state media leaked a draft suggesting Tehran had secured massive concessions, including the immediate unfreezing of up to $24 billion in assets, the lifting of the US naval blockade on Iranian ports, and continued Iranian oversight of the Strait of Hormuz.[2][4]

The Iranian leaks infuriated Trump, who took to social media to denounce the reports as "fake news" and called Iranian negotiators "very dishonorable people to deal with." He insisted the leaked terms bore no resemblance to the written agreement.[2][5]

The core of the long-term dispute remains Iran's nuclear ambitions. The initial memorandum is designed to pause hostilities to create a 60-day window for comprehensive negotiations on the nuclear program—the stated rationale for the initial US and Israeli strikes in February.[4][8]

The ceasefire would theoretically halt hostilities across all fronts, including the ongoing conflict between Israel and Hezbollah in Lebanon. However, Israeli Prime Minister Benjamin Netanyahu's office explicitly stated that Israel is not a party to the US-Iran memorandum, raising questions about the durability of a regional truce.[4][6]

Negotiators are now racing to finalize the logistics of the signing ceremony. While a senior US official estimated an "80 to 85%" chance the deal holds together, the deep mistrust and competing domestic political pressures in both capitals mean the agreement could still unravel at the eleventh hour.[2][3]