Trump criticizes reports that memorandum text favors Iran

A draft memorandum aimed at stopping the Gulf war appears to hand Tehran many of the gains it has long sought, according to Western, Pakistani and Iranian sources — a prospect that quickly drew fire from US President Donald Trump, who dismissed the reports as wrong.

Reuters reviewed multiple versions and descriptions of the ⁠memorandum from Western officials, Pakistani mediators and senior Iranian sources. Iranian media also carried accounts of the proposal.

All of the sources cautioned that the text remains unfinished. A Western source, an Iranian source and a Gulf source all said one major sticking point is the wording on halting hostilities in Lebanon, where Iran wants Israel to stop its offensive against Hezbollah, the Tehran-backed militia.

Though the accounts differed slightly at the margins, each broadly reflected the core terms Iran first put forward two months ago in direct talks — conditions Washington had until now repeatedly refused.

“Very dishonorable people to deal with,” he said of the Iranians.

Under the proposal described to Reuters, Washington would swiftly release billions of dollars in frozen Iranian assets and ease sanctions on Iran’s oil exports. In exchange, Iran would lift its blockade of the Strait of Hormuz, which has been largely shut since fighting began.

Contentious US demands over Iran’s nuclear programme would be postponed and pushed into a 60-day negotiating window on a final agreement. For now, the only direct mention of nuclear policy would be a renewed reference to Iran’s longstanding pledge not to pursue nuclear weapons, a commitment dating back to its 1970 ratification of the UN Non-Proliferation Treaty.

The draft texts also include what would amount to major concessions from Washington: talks on potentially hundreds of billions of dollars in war reparations for Tehran, and an end to longstanding US demands for limits on Iran’s missile programme.

The United States has previously insisted that Iran surrender its stockpiles of highly enriched uranium. Yet none of the versions reviewed by Reuters mentions that issue, and sources said it had been deliberately left out for the time being.

One Western source said that if negotiators can settle the remaining language, the memorandum could be signed as early as Sunday by US Vice President JD Vance and Iran’s parliament speaker, Mohammad Baqer Qalibaf, with Geneva currently viewed as the most likely location.

Despite entering the war alongside the United States, Israel has so far been left out of the talks, and Prime Minister ‌Benjamin Netanyahu said Israel would not sign on to the memorandum.

Mr Netanyahu and Mr Trump have repeatedly collided in recent weeks over US pressure on Israel to scale back military operations in Lebanon so Washington can secure an accord with Tehran.

Watch: Donald Trump unveils what he called a ‘great settlement’ with Iran

Trump pulls back planned strikes

The proposed agreement surfaced at the close of a week marked by the most serious Gulf escalation since a ceasefire paused US ⁠and Israeli attacks on Iran.

Iran and Israel exchanged fire for the first time since that truce, before Washington carried out two days of strikes on Iran that were followed by retaliatory fire at US bases across the region.

Mr Trump said abruptly yesterday that he was scrapping plans for broader new strikes because the agreement was now within reach.

“We just made a great settlement of the war with Iran,” Mr Trump told reporters at the White House yesterday.

His ⁠announcement of a deal lifted global stock markets and pushed oil prices lower.

Brent crude fell by more than 3%, touching its lowest level in nearly two months.

Throughout the conflict, Mr Trump repeatedly declared that an agreement was imminent — but those predictions had not produced a breakthrough.

When he entered the war alongside Israel, Mr Trump said his chief goals were to dismantle Iran’s nuclear programme, eliminate its capacity to strike neighbouring states and create conditions that could help Iranians overthrow their government.

None of those goals has been met. But reopening the strait would restore Gulf trade flows to something close to pre-war levels, ending what has been the most severe disruption ever to global energy ⁠supplies.

“The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” Mr Trump said, adding that Mr Vance would be present for the signing. He gave no further details.

Asked whether Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the ⁠deal, Mr Trump replied: “I understand the answer is yes”.

Iran has halted shipping through the Strait of Hormuz

US shoots down two Iranian drones

Even so, the Strait of Hormuz remained highly volatile. A US official said yesterday that American forces shot down two Iranian one-way attack drones after Tehran tried to target commercial vessels passing through the strategic waterway.

Iran’s military also prevented a tanker from moving through the strait, according to state media, which reported explosions in the early hours of today.

Read more:Latest developments from the Middle East

The conflict has become an increasingly sharp political problem for the White House, as polls show Mr Trump’s approval ratings slipping amid public frustration over rising gasoline prices.

Some Republicans have openly warned that the war’s political cost could jeopardise the party’s grip on Congress in the November midterm elections.

Still, many Republican leaders have long taken a hard line on Iran and may find it difficult to back an agreement widely seen as making substantial concessions to Tehran.

Tehran has consistently said its nuclear programme is peaceful. Under a 2015 accord with the administration of then-US President Barack Obama, Iran accepted strict limits in exchange for sanctions relief.

Mr Trump withdrew from that agreement during his first term in ‌2018, arguing it did not go far enough. Iran then accelerated uranium enrichment, amassing more than 400kg of material enriched to near weapons-grade levels — stock that remains unaccounted for.