The United States and Iran have indicated that a deal to end their recent conflict may be within reach, with a senior US administration official revealing that both sides have agreed on a draft text and that Washington expects an initial agreement to be signed within days.
Iranian Foreign Minister Abbas Araqchi said the proposed agreement could still undergo changes but argued that Iran had emerged stronger from the conflict.
“Iran is the winner of the war with the US,” Araqchi told state television.
Despite the diplomatic progress, tensions remain high. US forces reportedly intercepted several Iranian one-way attack drones heading towards the Strait of Hormuz, which officials said posed a threat to commercial shipping. US Central Command later confirmed the action, adding that the strategic waterway remains open to maritime traffic.
Reports from Iranian media indicated that explosions were heard near Sirik Port and Qeshm Island. Local officials attributed the incidents to warning shots fired by Iranian forces at vessels attempting to cross the Strait without authorisation from the Revolutionary Guards’ navy.
Strait of Hormuz at the Centre of Negotiations
According to sources familiar with the negotiations, the proposed memorandum of understanding includes provisions for reopening the Strait of Hormuz and ending the US naval blockade on Iranian ports. Further negotiations on Iran’s nuclear programme are expected to follow.
The senior US official said the agreement addresses President Donald Trump’s primary objectives and places negotiations in a “very good position”.
While details vary among sources, the broad framework would see Iran reopen the Strait in exchange for significant sanctions relief and access to frozen financial assets.
Araqchi stated that Iran, alongside Oman, would retain oversight of shipping through the Strait of Hormuz, a critical trade route that previously handled around one-fifth of the world’s oil and gas supplies.
Nuclear Programme Remains a Key Issue
Draft proposals reviewed by multiple sources suggest that the United States would gradually release billions of dollars in frozen Iranian assets and ease restrictions on Iranian oil exports.
In return, Iran would reopen the Strait and enter a 60-day negotiation period regarding its nuclear programme.
US officials maintain that the ultimate goal remains the dismantling of Iran’s nuclear capabilities, including the destruction or removal of its highly enriched uranium stockpile under a strict international inspection regime.
However, Araqchi rejected suggestions that Iran would completely abandon its nuclear programme, stating that Tehran favours diluting its enriched uranium rather than surrendering it.
Israel Distances Itself from Talks
Israel has not participated in the negotiations and has made clear it will not be bound by any resulting agreement.
Prime Minister Benjamin Netanyahu has reportedly clashed with the Trump administration over efforts to limit Israeli military operations in the region while diplomatic talks continue.
Araqchi suggested the agreement could contribute to ending hostilities in Lebanon, although Israeli officials have indicated they intend to retain freedom of action against perceived security threats.
Markets React Positively
News of progress towards a deal has been welcomed by financial markets. Global stock markets rose, while oil prices fell sharply amid hopes that tensions in the Gulf could ease.
Brent crude declined by more than 3%, reaching its lowest level in nearly two months as investors anticipated reduced risks to global energy supplies.
The conflict has become an increasingly sensitive political issue for the White House, with rising fuel prices and economic uncertainty affecting public sentiment. Some Republican lawmakers are reportedly concerned that the political fallout from the conflict could influence November’s midterm elections, while others may oppose any agreement perceived as overly favourable to Tehran.