A senior U.S. administration official said Friday that Washington and Tehran have agreed on the text of an initial accord to end their war, with signing expected within days. Iranian Foreign Minister Abbas Araqchi confirmed the tentative agreement on state television, calling Iran the winner of the conflict and saying minor changes were still possible.
The memorandum of understanding would reopen the Strait of Hormuz, which Iran shut after the U.S. and Israel launched attacks in February, and lift the U.S. blockade on Iranian ports. In return, Washington would release billions of dollars in frozen Iranian assets and waive sanctions on Iranian oil exports. Talks on the nuclear program would follow during a 60 day window, with the U.S. saying Iran's stockpile of highly enriched uranium will be destroyed and removed.
A Western source told Reuters the deal could be signed as soon as Sunday by U.S. Vice President JD Vance and Iran's parliament speaker Mohammad Baqer Qalibaf, with Geneva seen as the likeliest venue. Israel, which fought alongside the United States, has not been part of the talks. Prime Minister Benjamin Netanyahu said his country will not be party to the agreement, and Israel's defense minister said forces will not withdraw from Lebanon despite Araqchi's claim that the deal would end the Lebanon war.
Markets moved on the news. Brent crude fell more than 3% to its lowest level in nearly two months, and global stocks rose. The strait handled roughly one fifth of the world's oil and gas supply before the war, and a reopening would relieve tanker owners who have absorbed months of rerouting, war risk premiums and elevated insurance costs. Araqchi said Iran would retain control of strait traffic alongside Oman, warning that the country's sword will always hang over the waterway.