President Donald Trump announced Monday that a draft memorandum of understanding on 'peace' has been 'largely negotiated' with Tehran and several regional powers. According to reports from Axios and other US media outlets, Trump spoke from the Oval Office with leaders from Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkey, Egypt, Jordan and Bahrain regarding the peace agreement. In a lengthy post on Truth Social, Trump stated that 'An Agreement has been largely negotiated, subject to finalization' between the United States, the Islamic Republic of Iran, and various other countries. The president added that 'final aspects and details of the Deal are currently being discussed, and will be announced shortly'. However, US Secretary of State Marco Rubio told reporters in New Delhi on Monday that nothing is ready to be signed as negotiators work through precise language on key issues, with final approval potentially taking several days. The latest developments show three senior Iranian officials told The New York Times that Iran had agreed to a memorandum of understanding that would stop the fighting and reopen the Strait of Hormuz, marking among the strongest signs since a cease-fire took effect early last month that the two sides may be moving closer to a deal.
The emerging framework, still subject to final negotiations, would reopen the strategically vital Strait of Hormuz and ease some US sanctions on Iran. As reported by Axios, the draft agreement is centered on a 60-day renewable memorandum of understanding with specific commitments from both sides. Under the proposed framework, Iran would reopen the Strait of Hormuz and remove naval mines deployed in the waterway, while the US would ease its blockade on Iranian ports and provide limited sanctions waivers allowing Tehran to resume oil exports. The draft proposal would also commit Iran to never pursue nuclear weapons and to negotiate limits on uranium enrichment and the disposition of its stockpile of highly enriched uranium. However, US officials expect a substantial Iranian commitment to forgo enrichment as part of any final deal, though Iran hasn't confirmed these details and has made clear it intends to preserve its uranium stockpile. According to The New York Times, the Iranian officials said Iran would allow ships to pass through the Strait of Hormuz, a waterway crucial to the world's oil and gas trade, without tolls or fees — for now, in turn for the US lifting its naval blockade on Iran.
Israeli Prime Minister Benjamin Netanyahu publicly welcomed the negotiations but reiterated Israel's long-standing position that any deal must completely dismantle Iran's nuclear capabilities. According to reports, Netanyahu spoke with Trump about 'the memorandum of understanding to reopen the Straits of Hormuz and the upcoming negotiations toward a final agreement on Iran's nuclear program.' He told Trump that 'any final agreement must eliminate the nuclear danger' and emphasized that 'that means dismantling Iran's nuclear enrichment sites and removing its enriched nuclear material from its territory.' The draft agreement reportedly includes provisions aimed at ending the war between Israel and Hezbollah in Lebanon, with the arrangement not amounting to a 'one-sided ceasefire' and Israel retaining the right to act if Hezbollah attempted to rearm or launch attacks. However, the parallel war between Israel and Iranian-backed Hezbollah in Lebanon would end under the proposed deal, which Israel may be reluctant to endorse. The latest developments show the agreement would also halt fighting on all fronts, including in Lebanon, where Israel has continued to clash with the Iran-backed militant group Hezbollah.
Crude oil fell to its lowest level in more than two weeks as trading began Monday in Asia, with global crude benchmark Brent trading down about 6% after US officials' comments. The dollar weakened on expectations that a deal may be near, reflecting market confidence in the diplomatic progress. However, several Republicans compared the reported deal unfavorably to the 2015 Iran deal that President Barack Obama made with Iran, with Senate Armed Services Committee Chairman Roger Wicker writing on social media that a new ceasefire 'would be a disaster'. Trump rejected this criticism, stating that 'Our relationship with Iran is becoming a much more professional and productive one' and emphasizing that 'They must understand, however, that they cannot develop or procure a Nuclear Weapon or Bomb.' The president added that 'Our deal is the exact opposite' of the previous agreement and stressed that 'Our blockade of the strait would remain in place until an agreement is completed'. The latest comments from Iranian Deputy Foreign Minister Kazem Gharibabadi said in a social post early Sunday morning that Iran was 'seeking peace with strength, pursuing diplomacy with dignity and firmly defending the territorial integrity, independence and rights of our beloved Iran'.
The diplomatic push comes after months of conflict in West Asia that triggered an energy shock and led Tehran to effectively close the Strait of Hormuz, through which roughly a fifth of the world's oil supply normally passes. According to reports, US military forces deployed to the region in recent months would reportedly remain in place during the interim arrangement and withdraw only if a final accord is reached. Trump suggested the negotiations could also lead to broader regional normalisation efforts, including possible expansion of the Abraham Accords, with the president writing that 'Perhaps the Islamic Republic of Iran would like to join, as well!' The president stressed that US pressure on Iran would remain in place until a final agreement is signed and verified. However, Iranian media and officials have been more circumspect, with the semi-official Tasnim news agency reporting that Washington and Tehran are still at odds over 'one or two provisions' and the Fars agency dismissing Trump's claims as 'far from reality'. The latest developments show Iranian officials pursued a twofold strategy: engaging in a frenzy of diplomatic negotiations while also aggressively planning for all-out combat, with the diplomatic option appearing to win out on Saturday.
