Overview

A senior U.S. administration official told Reuters that the United States and Iran have agreed on a draft text for a memorandum of understanding that could end their conflict, and Washington expects an initial agreement to be signed within days.

Negotiation Details

Iranian Foreign Minister Abbas Araqchi said the draft could still be amended but indicated it shows Iran emerged stronger. The proposed MOU would reopen the Strait of Hormuz and terminate the U.S. naval blockade on Iranian ports. Negotiations on Iran’s nuclear programme would be conducted in a separate 60‑day track after the MOU.

A Western source said the agreement could be signed as early as Sunday by U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammad Baqer Qalibaf, possibly in Geneva, with the signing to be performed remotely before public announcement.

The draft calls for the United States to release “billions of dollars” in frozen Iranian assets and to waive sanctions on Iranian oil exports in exchange for the reopening of the strait. The U.S. administration indicated that a final agreement would ultimately lead to dismantling Iran’s nuclear programme and removing highly enriched uranium stockpiles, while Iran prefers to retain the material in diluted form.

Military Situation

Despite the diplomatic progress, military tensions remained high. U.S. forces shot down multiple Iranian one‑way attack drones near the Strait of Hormuz on Friday after assessing a threat to commercial shipping. U.S. Central Command later confirmed the operation and stated that the waterway remained open. Iranian media reported explosions near Sirik port and Qeshm Island, which local officials attributed to warning shots fired by Iranian Revolutionary Guard Navy vessels at ships attempting to cross without authorization.

Regional Positions

Israel is not participating in the talks. Prime Minister Benjamin Netanyahu said Israel would not be a party to the agreement, and Israeli officials reiterated that Israel intends to maintain freedom of action against security threats.

Market Impact

Global equity markets moved higher following the news, and Brent crude oil fell more than 3%, reaching its lowest level in almost two months.