A senior source informed Al Arabiya that the signing of the Memorandum of Understanding between Iran and the United States may occur remotely on Sunday.
On Friday, both the U.S. and Iran indicated their proximity to reaching an agreement to end the war between them. A senior American official stated that the two parties have agreed on a text and that Washington is expected to sign a preliminary deal in the coming days.
Iranian Foreign Minister Abbas Araghchi noted that while modifications to the text are still possible, the preliminary agreement clearly shows that his country has emerged stronger from the conflict.
In an official broadcast, he declared, "Iran is the victor in the war with the United States."
Multiple sources indicated that the so-called Memorandum of Understanding includes reopening the Strait of Hormuz and lifting the U.S. blockade on Iranian ports. Negotiations about Iran's nuclear program, which President Donald Trump had cited as the cause for launching the war, will follow later.
The American official, speaking on condition of anonymity, mentioned that the deal fulfills Trump's main objectives and places the negotiations in "a very good position."
Leaked provisions of the proposed Memorandum of Understanding, shared by Western, Pakistani, and Iranian sources on Friday, appeared to favor Iran significantly. This drew criticism from President Trump, who described the reports as inaccurate.
Despite slight differences in the memorandum versions, they seemed to accept the main terms proposed by Tehran without gaining much for Trump, except for reopening the Strait of Hormuz, which Iran had closed following American and Israeli attacks in February.
Araghchi stated that Iran will, alongside Oman, retain control over navigation through the Strait of Hormuz, which used to facilitate a fifth of the world's oil and gas supplies before the war.
He added, "Our sword will remain poised over the Strait of Hormuz."
Agreement Content
Multiple sources informed Reuters that the draft agreement includes the immediate release of billions of dollars of Iran's frozen assets and lifting sanctions on its oil exports in exchange for Tehran lifting its blockade on the Strait of Hormuz, which has been effectively closed since the war began.
Discussions on the main U.S. demands regarding Iran's nuclear program will also be delayed for 60 days of talks aimed at reaching a final settlement. Sources mentioned that the proposals include discussions about potential compensation for Iran over the war and dropping U.S. demands to limit Iran’s missile program.
The U.S. had previously demanded Iran relinquish its stockpile of highly enriched uranium, yet none of the drafts reviewed by Reuters mentioned this demand. Sources confirmed this condition has been explicitly omitted at this stage.
Nonetheless, another high-ranking U.S. official remarked on the deal, stating, "Uranium stocks will be destroyed and removed," and Iran's nuclear program will be dismantled.
The unnamed official added, "No money will be released until they fulfill their commitments, and the Strait of Hormuz remains open. Iran will not fund terrorist groups... this is what they've agreed to. It's a deal based on their commitment."
Israel Not a Party
A Western source indicated that if wording is agreed upon, Gerald Vanes and Iranian Parliament Speaker Mohammad Baqer Qalibaf could sign the memorandum by next Sunday, with Geneva likely as the signing venue.
Araghchi mentioned that the agreement would be signed remotely before being announced.
The U.S. administration official noted discussions about potentially signing the agreement in Europe, but no decision has been made.
Despite Israel’s involvement in the war alongside the U.S., it has so far been excluded from negotiations. Israeli Prime Minister Benjamin Netanyahu stated Israel would not be a party to the Memorandum of Understanding.
Netanyahu clashed multiple times with Trump in recent weeks due to the U.S. demand for Israel to restrain its military operations in Lebanon to allow Washington to reach an agreement with Tehran.
Araghchi said the agreement would end the war in Lebanon, implying Israel's withdrawal from occupied areas.
The Israeli Defense Minister said Israel would not withdraw from Lebanese territories. An Israeli senior official stated that Israel expects any agreement will allow it to retain freedom of operation against perceived threats in its controlled areas.
Oil Prices Drop
This agreement arrives at the end of a week of heightened tension in the Gulf since the ceasefire, which paused American and Israeli attacks on Iran. For the first time since the ceasefire, Israel and Iran exchanged fire, and Washington conducted two days of airstrikes on Iran, which retaliated by bombing American bases in the region.
Trump's announcement caused global stock prices to rise and oil prices to drop. Brent crude prices fell over three percent to their lowest level in nearly two months.
The conflict has become a political dilemma for the White House after polls showed Trump's popularity declining amidst voter anger over rising gas prices.
Some Republicans fear the declining support for the war could lead to losing control of Congress in the upcoming midterm elections in November. However, many Republicans maintain hardline stances on Iran, potentially struggling to support any agreement perceived as compromising.
Tehran has long emphasized the peaceful nature of its nuclear program and previously accepted strict limits in exchange for lifting sanctions under a 2015 deal with then-President Barack Obama's administration.
Trump withdrew from that deal during his first term in 2018, leading Iran to increase uranium enrichment, producing over 400 kilograms of material near weapons-grade purity.