The United States and Iran on Friday indicated they were edging closer to an agreement that could bring an end to months of conflict, with officials on both sides expressing optimism that a deal may be signed within days.
A senior U.S. administration official said Washington and Tehran had agreed on the text of a memorandum of understanding and were now working toward final approval.
Iran’s decision-making bodies were also reviewing the proposed agreement, according to the country’s foreign ministry.
The emerging deal would reopen the Strait of Hormuz and lead to the lifting of the U.S. blockade on Iranian ports, addressing one of the most disruptive consequences of the war.
The U.S. official described negotiations as being in a “very, very good place” and said the agreement aligned with President Donald Trump’s key objectives.
Reports outlining draft terms of the deal circulated earlier on Friday, suggesting Iran had secured many of its long-standing demands.
The reports drew criticism from Trump, who dismissed claims that Washington was making major concessions and described some of the leaked details as “fake news.”
While accounts from Western, Iranian and Pakistani sources differed slightly, they broadly indicated that Tehran would receive significant economic relief in exchange for restoring shipping through the Strait of Hormuz.
U.S. officials, however, insisted that the agreement would also address one of Washington’s core concerns: Iran’s nuclear programme.
According to a senior administration official, Iran’s stockpile of highly enriched uranium would be destroyed and removed under the framework of the deal, while the country’s nuclear programme would eventually be dismantled.
“None of their money is released until they perform. The Strait of Hormuz will be open. No funding of terrorist groups.
This is a performance-based agreement,” the official said.
Vice President JD Vance echoed that position, stressing that Iran would not receive immediate financial benefits simply for signing the deal.
Pakistan, which has played a key role in back-channel diplomacy, said the text of the agreement had already been finalized.
Prime Minister Shehbaz Sharif said Islamabad was now working closely with both countries to coordinate the next phase of the process.
Under draft terms described by multiple sources, Washington would begin releasing frozen Iranian assets and ease sanctions on Iranian oil exports after Tehran fulfills agreed conditions.
Negotiations over Iran’s nuclear programme would then continue during a 60-day period aimed at securing a broader settlement.
The proposals reportedly also include discussions on possible war reparations and the removal of longstanding U.S. demands for restrictions on Iran’s missile programme.
A Western diplomatic source said the memorandum could be signed as early as Sunday, with Geneva emerging as the most likely venue.
The agreement could reportedly be signed by Vice President Vance and Iran’s parliamentary speaker, Mohammad Baqer Qalibaf, although officials said no final decision had been made on the location.
Notably absent from the talks is Israel, which joined the United States in launching military operations against Iran earlier this year.
Prime Minister Benjamin Netanyahu has made clear that Israel is not a party to the proposed agreement.
His government has increasingly diverged from Washington in recent weeks, particularly over military operations in Lebanon and the broader approach toward Tehran.
Signs of progress in the negotiations boosted investor confidence, sending global stock markets higher while oil prices fell sharply.
Brent crude dropped more than three percent, reaching its lowest level in nearly two months as traders anticipated a possible easing of tensions in the Gulf.
The potential breakthrough comes after months of fighting that disrupted global energy markets, pushed fuel prices higher and created political challenges for Trump at home.
Rising gasoline prices and public unease over the conflict have weighed on the president’s approval ratings ahead of November’s midterm elections.
Although major hurdles remain, Friday’s developments marked the strongest indication yet that Washington and Tehran may be on the verge of their first formal agreement since the conflict began.
