Iran Peace Deal Accelerates Amid New Military Escalations Near Strait of Hormuz

The United States and Iran have indicated that a significant agreement to end hostilities is imminent. A senior U.S. administration official announced on Friday that both parties have reached consensus on a draft text, with expectations for an initial deal to be signed in the coming days.

Shortly after these statements, U.S. forces intercepted and destroyed several Iranian one-way attack drones that were reportedly targeting the Strait of Hormuz. U.S. Central Command confirmed the action, stating that the waterway remains open for transit.

Iranian news outlets reported explosions near Sirik port and Qeshm Island, attributed to Iranian military forces firing warning shots at vessels attempting to navigate the strait without authorization from the Revolutionary Guards’ navy.

The proposed memorandum of understanding aims to reopen the Strait of Hormuz and lift the U.S. naval blockade on Iranian ports. Sources involved in the negotiations revealed that discussions regarding Iran’s nuclear program, which U.S. President Donald Trump cited as a primary reason for initiating the conflict, will follow this initial agreement.

The U.S. official, who spoke on the condition of anonymity, indicated that the deal aligns with Trump’s core objectives and positions the negotiations in a favorable light.

Details of the Proposed Agreement

Reports from various Western, Pakistani, and Iranian sources suggest that the draft proposal may favor Iran, drawing criticism from Trump, who labeled the reports as inaccurate. Although minor discrepancies exist, the terms appear to offer Tehran many of its demands, while Trump seems to have secured limited concessions beyond the reopening of the strait, which Iran had closed following U.S. and Israeli strikes in February.

A Western source indicated that the deal could be signed as early as Sunday by U.S. Vice President JD Vance and Iran’s parliament speaker, Mohammad Baqer Qalibaf, with Geneva being a likely venue for the signing. The U.S. administration has also considered Europe as a potential location, but no final decision has been made.

Iranian Foreign Minister Abbas Araqchi stated that the agreement would be signed remotely before any public announcement.

What’s in the Deal?

Draft terms shared with Reuters by multiple sources suggest that the U.S. would commence the release of billions of dollars in frozen Iranian assets and lift sanctions on Iranian oil exports in exchange for Iran’s commitment to reopen the strait.

The negotiations will also address Iran’s nuclear program over a 60-day period. The U.S. official noted that the agreement aims to lead to the dismantling of Iran’s nuclear capabilities, including the destruction and removal of its stockpile of highly enriched uranium. Additionally, the terms would establish a long-term inspection regime to ensure compliance.

However, Araqchi mentioned on state television that Iran has not agreed to dismantle its nuclear program and prefers to retain its uranium in a diluted form. He stated, “For Tehran, the only preferred solution for its highly enriched uranium stockpile is down-blending the material.”

The proposals also include discussions about potential war reparations for Iran and the removal of longstanding U.S. demands regarding limitations on Iran’s missile program. The U.S. official disputed these claims, asserting that no funds would be released until Iran fulfills its obligations. “The Strait of Hormuz will be open. No Iran funding of terrorist groups,” the official stated.

Israel’s Position

Israel has not participated in the negotiations, and Prime Minister Benjamin Netanyahu has made it clear that the country will not be a party to the agreement. Netanyahu has recently clashed with Trump over U.S. demands for Israel to limit military actions in Lebanon to facilitate a deal with Tehran.

Araqchi implied that the agreement would conclude the war in Lebanon, suggesting an Israeli withdrawal from occupied territories. However, Israel’s defense minister has stated that the country will not withdraw, and a senior Israeli official emphasized that Israel expects to maintain its freedom to respond to threats.

Market Reactions

The progress towards an agreement comes at the end of a week marked by heightened tensions in the Gulf, including exchanges of fire between Israeli and Iranian forces, U.S. strikes on Iranian targets, and subsequent retaliation against U.S. bases.

In response to the news, global stock markets experienced gains, while oil prices fell significantly. Brent crude prices dropped by more than 3%, reaching their lowest point in nearly two months.

The ongoing conflict has posed a political challenge for the White House, particularly amidst rising fuel prices and declining approval ratings for Trump. Some Republican members are concerned that the unpopularity of the war could jeopardize their control of Congress in the upcoming midterm elections. However, many of Trump’s fellow Republicans may find it difficult to support an agreement perceived as overly favorable to Iran.

As reported by www.emirates247.com.

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Published on 2026-06-13 08:33:00 • By FAME Delivered News Desk