Iran Peace Memorandum Set for Sunday Signing in Geneva, Source Confirms
A memorandum aimed at halting the ongoing conflict in the Gulf between the United States and Iran could be signed as early as Sunday, according to a Western source. Geneva is being considered as the likely venue for this significant agreement.
Finalization of Terms
The language of the memorandum is still under discussion, with Iran maintaining its stance that the deal must also address the ongoing hostilities in Lebanon, where Israel is engaged in combat with the Iran-backed Hezbollah militia. The goal is to finalize the wording by Saturday, allowing U.S. Vice President JD Vance and Iran’s Parliament Speaker Mohammed Baqer Qalibaf to sign the agreement.
On Thursday, President Trump announced that he was canceling plans for new strikes on Iran, indicating that the deal was nearing completion. He stated, “We just made a great settlement of the war with Iran,” during a press briefing at the White House.
Terms of the Agreement
The terms of the agreement, as outlined by Iranian officials, appear to meet many of Tehran’s demands. In contrast, Trump seems to gain little beyond the reopening of the Strait of Hormuz, which Iran had closed following U.S. attacks in February. A senior Iranian source indicated that the draft would include provisions to waive sanctions on Iranian oil, unfreeze billions of dollars in Iranian assets, and require a cessation of hostilities across all fronts, including Lebanon.
Nuclear issues are expected to be deferred for future discussions. Washington aims for a deal that guarantees Iran will not develop nuclear weapons, while Iran insists it has no intention of pursuing such capabilities.
The demands for the lifting of sanctions, the unfreezing of Iranian assets, and the cessation of Israeli military actions in Lebanon are critical for Iran. However, the source did not specify what Iran might offer in return, and there has been no immediate response from the U.S. regarding these terms.
Iran’s Mehr news agency reported that the agreement would also include additional U.S. concessions, such as a commitment to withdraw American forces from around Iran and to present a plan for the reconstruction of the Iranian economy, estimated to cost at least $300 billion.
Market Reactions
Trump’s announcement of a potential deal, which came shortly after he threatened further military action against Iran, led to a rally in global stock markets and a decline in oil prices. Brent crude prices fell by more than 2% during European morning trading.
The conflict, which escalated following U.S. and Israeli strikes on Iran that began on February 28, has seen Trump make similar claims of imminent agreements in the past, often without any resolution materializing. However, market participants seemed reassured that his latest statements indicated a de-escalation of tensions, which had intensified following exchanges of fire between Iran and Israel.
Trump remarked, “The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” confirming that Vance would attend the signing ceremony. He also expressed confidence that Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal, stating, “I understand the answer is yes.”
Ongoing Tensions
Despite the potential for a peace agreement, tensions remain high in the region. U.S. forces recently shot down two Iranian drones that were reportedly attempting to target commercial vessels in the Strait of Hormuz. Iranian state media reported that Iran’s military had intercepted a tanker in the strait, with explosions heard early Friday.
The ongoing conflict has become a significant political challenge for the White House, with polls indicating a decline in Trump’s approval ratings amid public frustration over rising gasoline prices. Some Republican lawmakers have expressed concern that the unpopularity of the war could jeopardize their chances in the upcoming midterm elections.
The proposal to limit fighting in Lebanon may face resistance from Israel, which initiated the conflict alongside the U.S. in February but has not been included in the peace negotiations. Prime Minister Benjamin Netanyahu’s office has stated that Israel is not a party to any memorandum of understanding with Iran.
As reported by www.emirates247.com.
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Published on 2026-06-12 14:54:00 • By FAME Delivered News Desk