President Donald Trump posted on social media on Sunday urging Israel to cease all attacks anywhere in Lebanon, describing the recent bombing in southern Beirut – which killed three people and injured fifteen – as unnecessary, especially as the United States moves closer to a peace deal with Iran. The Israeli military said the airstrikes that preceded the statement targeted a Hezbollah command centre and were retaliation for drone attacks, which Trump characterised as “small and meaningless.”
According to Reuters, Iran and the United States have shared the final draft of a memorandum of understanding that covers a broad range of issues. The draft calls for the immediate reopening of the Strait of Hormuz to commercial vessels, the lifting of the U.S. naval blockade on Iranian ports, and the removal of oil‑related sanctions, allowing Tehran to sell oil during a specified period. The United States would also refrain from imposing any new sanctions on Iran until a final agreement is reached and would facilitate the release of $25 billion in frozen Iranian assets through direct cash transfers, regional cooperation and the establishment of financial credit lines.
On the nuclear front, the draft requires Iran not to produce or acquire nuclear weapons, to maintain the current nuclear status quo, and to refrain from uranium enrichment or expanding nuclear facilities. In return, the United States would agree to Iran diluting its stockpile of highly enriched uranium within Iran, with the dilution process to be finalised within sixty days of the agreement.
Strategic adviser Mehdi Mohammadi, speaking for Iran’s negotiating team, said the proposal recognises Iran’s authority over the Strait of Hormuz and that fees collected for safety, navigation and security services will continue to be collected by Iran and Oman alone. He also referenced a proposed $300 billion development and reconstruction fund, noting that the term “reconstruction” implies rebuilding war‑damaged infrastructure, even though the word “compensation” is not used.
Trump indicated that a formal agreement could be signed as early as the following Sunday, stating that the Strait of Hormuz would be “open to all” after the deal and that the United States would eventually secure and destroy Iran’s nuclear material. Iranian Foreign Minister Abbas Araghchi said the nuclear issue would be addressed in a second phase of talks.
Iran has expressed a desire to have its enriched uranium diluted inside the country, while Trump framed the deal as a guarantee that Tehran will never obtain a nuclear weapon. Iran also wants to charge for services provided in the Strait of Hormuz, whereas Washington maintains that the waterway should be reopened immediately.
The potential agreement has raised concerns in Lebanon, where Israeli strikes continued across the south despite reports of progress in U.S.–Iran negotiations. Israeli attacks killed at least five people in Lebanon on Saturday, and Hezbollah reported multiple drone and rocket attacks on Israeli military positions. Israel has stated it is not a party to the U.S.–Iran talks but intends to retain freedom of action against perceived threats.
In Gaza, Israeli strikes continued, with Palestinian authorities reporting two fatalities in Khan Younis. The prospective deal follows months of fighting that disrupted shipping through the Strait of Hormuz and pushed oil prices higher. Trump described the proposed agreement as a diplomatic breakthrough, while Iranian officials presented it as only the first step toward broader negotiations.