Newsletters
Four U.S. Air Force C-17 transport aircraft departed for Europe on Thursday, carrying equipment for a possible signing ceremony in Geneva.
U.S. President Donald Trump claimed earlier that the United States had reached a "great settlement" with Iran to end the war, while Tehran said it had "not yet reached a final decision," as Iran's hardline faction warned that Trump may be bluffing.
If signed, the "Islamabad Agreement" would immediately reopen the Strait of Hormuz without transit fees, extend the ceasefire for 60 days, including in Lebanon, and open nuclear negotiations, representing the most significant diplomatic breakthrough in the war.
Axios, citing a diplomat from one of the mediating countries and U.S. officials, reported that the Memorandum of Understanding (MoU) calls for the Strait of Hormuz to reopen immediately without transit fees and for shipping volumes to return to pre-war levels within 30 days.
The U.S. naval blockade would be lifted simultaneously.
The MoU would extend the ceasefire for 60 days, including in Lebanon, during which time nuclear negotiations would be held. Iran would commit not to pursue a nuclear weapon and would address its stockpile of enriched uranium, though any concrete steps on the nuclear file would depend on a separate, more detailed second agreement.
A senior U.S. official said Trump had agreed that one option for resolving the enriched uranium standoff could be down-blending Iran's highly enriched uranium inside the country under U.N. inspectors' supervision.
Iran would receive phased sanctions relief tied to compliance, including temporary waivers allowing oil exports during the initial 60-day period.
"There is no set date for sanctions relief and it will be tied to the implementation of the deal," the diplomat said.
The question of billions in frozen Iranian assets abroad remained unresolved, with Iran insisting on some immediate payment and Washington favoring tranches based on compliance.
"The U.S., Iran and Qatar discussed a mechanism allowing Iran access to some frozen funds held in Qatar for humanitarian goods purchases," according to a U.S. official.
The tentative agreement was reached on Wednesday night following hours of negotiations between Qatari mediator Ali Al-Thawadi and Iranian Foreign Minister Abbas Araghchi in Tehran, Axios reported.
During the talks, Thawadi spoke multiple times by phone with Trump's envoys Steve Witkoff and Jared Kushner.
Trump's announcement that a deal had been finalized came as a surprise to Israeli Prime Minister Benjamin Netanyahu, who had found himself in the dark and was calling allies close to the Trump administration to gather information, according to a U.S. source with direct knowledge.
1 min read
"We just made a great settlement of the war with Iran," Trump told reporters at the White House.
"The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe," he said, adding that Vice President JD Vance would attend the signing.
Asked whether Khamenei had approved the deal, Trump said: "I understand the answer is yes."
Iran's Foreign Ministry spokesman, Esmaeil Baghaei, said that large parts of the agreement had been finalized but that Iran had not reached a conclusion.
"We have not reached a final conclusion on this matter. This is a very important issue that is currently being reviewed by the relevant decision-making bodies," he said.
As of Thursday evening, the deal had been approved at high levels on the Iranian side but likely not yet by Supreme Leader Khamenei, two sources with knowledge of the matter told Axios.
Trump also praised Türkiye's role in the negotiations, saying he had spoken with President Recep Tayyip Erdogan and calling him "great" for his help toward a deal.
Senior lawmaker Ebrahim Rezaei, spokesperson for Iran's parliamentary National Security and Foreign Policy Committee, warned on X that Trump was likely acting deceptively. "The probability of deception by Trump is high," he wrote, adding that Trump "wants to keep the situation calm for now."
Rezaei urged Iran to "strike harder, destroy and annihilate the enemy's infrastructure, economic centers, and artificial intelligence in the region so they feel more pain."
He separately warned against any U.S. move on Kharg Island, saying, "If you come, you will not return alive."
The hardline Endurance Front faction (Jebhe-ye Paydari in Persian) has worked throughout the negotiations to block a deal with Washington, viewing any agreement as capitulation.
Set as preferred source
Set as preferred source
1 min read
