Iran has agreed not to pursue a nuclear weapon and to reopen the Strait of Hormuz in exchange for the release of roughly $25 billion in frozen assets, according to details published by Tehran on Sunday as part of a peace arrangement brokered by President Donald Trump.
The announcement points to a possible breakthrough after three and a half months of conflict that has rattled global markets and heightened concern over energy supplies. Iranian officials signaled cautious optimism, saying a broader agreement to end the crisis may now be within reach.
According to Axios, Washington and Tehran are expected to electronically sign a memorandum of understanding on Sunday following a virtual meeting. The document would serve as a framework for future negotiations on a more comprehensive long-term agreement focused on Iran’s nuclear program.
The Strait of Hormuz has remained central to the talks. On Saturday, Trump and Pakistani Prime Minister Shehbaz Sharif said a deal would be signed Sunday and would lead to the immediate reopening of the strategic waterway, a vital passage for about one-fifth of the world’s oil supply.
“We are closer to a peace deal than ever before. With finalization likely expected in the next 24 hours, Pakistan is preparing for the electronic signing of the peace deal immediately after, followed by technical-level talks next week,” Sharif wrote on social media.
An Iranian Foreign Ministry spokesperson also suggested that an agreement could be finalized within days, reinforcing expectations that the current memorandum could open the door to a wider settlement.
The deal, which would see $25 billion in Iranian assets unfrozen by the US, does not solve all issues between Tehran and Washington, but offers a 60-day framework for technical discussions on the issues, according to officials from Pakistan.
The US would also end its blockade of Iranian-linked ships coming out of the strait.
Shipping traffic through the narrow sea passage â through which 20% of the world’s oil flowed before the war â has slowed to a trickle.
Qatari negotiators flew into Tehran Sunday morning in coordination with the US to help facilitate the finalizing of the agreement, an official told the New York Times.
A signing ceremony was reportedly expected for the coming days in Geneva, Switzerland, where US and Iranian negotiators met for talks in February before the start of the war.
Vice President JD Vance would potentially be the head of the US delegation, while Iran is sending its top negotiator, parliamentary speaker Mohammad Bagher Ghalibaf.
However, on Sunday, there were conflicting reports over whether Iranian officials were being scrambled to travel abroad soon.
Iran’s Foreign Ministry insisted Saturday there were no plans for his negotiating team to travel to Geneva or elsewhere in the next day or two.
President Trump is expected to remain in Washington to attend Sunday’s UFC fight at the White House, which coincides with his 80th birthday.
The apparent break in the logjam comes as Israel’s military announced Sunday it had launched strikes on neighboring Lebanon, targeting Hezbollah infrastructure in the capital, Beirut.
Israel’s Prime Minister Benjamin Netanyahu said the strikes were in response to Hezbollah attacks on the north of the country.
Tehran, which is Hezbollah’s main backer, last responded to Israeli strikes on Beirut with its own strikes on Israel last weekend.
Iran has also insisted previously that any US-Iran ceasefire must include an end to Israeli strikes on Lebanon.
