US and Iran signal a deal is near as Hormuz tensions rise
"Iran is the winner of the war with the US," he said on state television.
A possible end to the US-Iran war appeared within reach, as both governments signaled they were nearing an agreement, with a senior US administration official saying the two sides had settled on a text and Washington expects an initial deal to be signed within days.
Iranian Foreign Minister Abbas Araqchi said revisions to the draft were still possible, but argued the tentative accord already showed Iran had come out of the conflict in a stronger position.
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“Iran is the winner of the war with the US,” he said on state television.
Just hours later, US forces shot down several Iranian one-way attack drones that were heading toward the Strait of Hormuz, according to a source familiar with the matter.
US Central Command later confirmed the interception and said the waterway remained open to shipping.
Iranian news agencies reported explosions near the strait in Iran’s Sirik port and on Qeshm island, where residents and local officials said Iranian forces had fired warning shots at vessels attempting to pass without permission from the Revolutionary Guards’ navy.
The proposed memorandum of understanding would reopen the strait and end the US naval blockade on Iranian ports, sources involved in the talks on all sides said.
Abbas Araghchi said Iran would retain control of traffic through the Strait of Hormuz
Talks over Iran’s nuclear program – the justification US President Donald Trump has given for launching the war – would follow afterward.
The US official, who spoke on condition of anonymity, said the draft fulfilled Mr Trump’s central objectives and left the negotiations “in a very, very good place.”
Descriptions of the proposal from Western, Pakistani and Iranian sources suggested terms that could tilt in Tehran’s favor, prompting criticism from Mr Trump, who rejected those accounts as inaccurate.
Though the details varied slightly, the proposals largely appeared to give Iran much of what it had been seeking, while Mr Trump seemed set to secure little beyond the reopening of the strait, which Iran shut after US and Israeli strikes in February.
Mr Araqchi said Iran, together with Oman, would keep control over traffic through the strait, a route that before the war carried one-fifth of the world’s oil and gas supply.
“Our sword will always hang over the Strait of Hormuz,” he said.
A Western source said the agreement could be signed as early as Sunday by US Vice President JD Vance and Iran’s parliament speaker, Mohammad Baqer Qalibaf, with Geneva viewed as the most likely location.
The US administration official said Europe had been discussed as a possible venue, but no final decision had been taken.
Mr Araqchi said the agreement would be signed remotely before being announced.
What is in the deal?
Draft terms described to Reuters by multiple sources indicate that the US would start releasing billions of dollars in frozen Iranian assets and waive sanctions on Iranian oil exports in exchange for Tehran reopening the strait.
Iran’s nuclear program would then be addressed during a 60-day negotiating period.
The US official said the agreement would eventually result in the dismantling of Iran’s nuclear program, with its stockpile of highly enriched uranium destroyed and removed.
The terms also provide for an inspection regime aimed at ensuring long-term compliance.
People from Tehran gather in support of Iranian Supreme Leader Mojtaba Khamenei
Mr Araqchi, however, told state television that Iran – which sources said has not agreed to dismantle its nuclear program – wants to keep the uranium in diluted form.
“For Tehran, the only preferred solution for its highly enriched uranium stockpile is down-blending the material,” he said.
The proposals also include discussions over possible war reparations for Tehran and the removal of longstanding US demands to limit Iran’s missile program, the sources said. The US official disputed that version of the terms.
“None of their money released until they perform. Strait of Hormuz will be open. No Iran funding of terrorist groups,” said the official, who spoke on condition of anonymity. “This is what they have agreed to. This is a performance-based deal.”
Israel not party to memorandum
Israel has not taken part in the negotiations, and Prime Minister Benjamin Netanyahu said his government would not be bound by the agreement.
Mr Netanyahu has sparred with Mr Trump in recent weeks over US demands that Israel scale back military operations in Lebanon so Washington could pursue a deal with Tehran.
Mr Araqchi said the agreement would bring the war in Lebanon to an end, suggesting Israel would withdraw from occupied areas.
Israel’s defence minister said there would be no withdrawal. A senior Israeli official said Israel expects to preserve its freedom to act against threats.
Oil prices fall
Signs of progress toward a deal came at the close of a week marked by a steep escalation in Gulf tensions, including exchanges of fire between Israel and Iran, US strikes on Iranian targets and retaliatory attacks on US bases.
Global stock markets moved higher and oil prices dropped after the developments.
Brent crude fell more than 3% at its lowest point in nearly two months.
Iran has blocked traffic through the Strait of Hormuz
The war has turned into a political problem for the White House as fuel prices rise and Mr Trump’s approval ratings weaken.
Some Republicans fear the conflict’s unpopularity could help cost the party control of Congress in November’s midterm elections.
At the same time, many of Mr Trump’s Republican allies may struggle to support an agreement seen as overly favorable to Iran.
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