US President Donald Trump has claimed that a draft memorandum of understanding (MOU) between the US and Iran for reopening the Strait of Hormuz without tolls, as well as ease sanctions on Tehran in stages, and further extend the current ceasefire for 60 days, will be signed soon.
According to officials familiar with the discussions, the proposed agreement would create a framework for facilitating broader talks related to Iran’s nuclear programme while also seeking to stabilise regional flashpoints, including Lebanon.
According to a diplomat from one of the mediating countries and a US official, the text, while agreed in principle by both sides still requires final approval, reports Axios.
The diplomat said that Washington and Tehran had “agreed on the text of a deal”, though key political sign-offs remain outstanding.
Sources familiar with the process said the agreement had received approval from senior Iranian officials but is yet to be formally endorsed by Supreme Leader Mojtaba Khamenei, with a spokesperson for Iran’s foreign ministry confirming that Tehran had “not yet reached a final decision”.
One of the MOU’s central provisions would first and foremost require Iran to agree on never acquiring a nuclear weapon, and resolve the standoff around its enriched uranium.
A senior US official said one option under discussion involves down-blending Iran’s enriched uranium inside the country under international supervision, rather than transferring it abroad.
Any steps on Iran’s nuclear program would only take place if a second deal is reached — an uncertain prospect given how difficult the far less technical negotiations over the MOU have been.
The diplomat claimed the MOU “goes into details on all the nuclear issues” and “satisfies all U.S. requirements.”
The draft further calls for the immediate reopening of the Strait of Hormuz and return all shipping in the vital waterway to pre-war levels within 30 days. Iran would also agree to suspend its system of charges on commercial vessels, while Washington would agree to in turn lift its maritime blockade.
US officials previously indicated Iran could receive temporary sanctions waivers allowing oil exports for an initial 60-day period. Further sanctions relief would depend on implementation of the deal and progress in follow-up negotiations.
“There is no set date for sanctions relief and it will be tied to the implementation of the deal,” the diplomat said.
Another key issue which is yet to be resolved is the fate of billions of dollars in Iranian assets frozen overseas.
While Iran has sought immediate access to some of its funds, the US argued that any release should occur in tranches and be linked to compliance.
According to US officials, Iran and Qatar have reportedly discussed a mechanism that would allow Tehran access to a portion of its frozen funds in Qatar for humanitarian purchases.
The latest breakthrough comes following hours of talks in Tehran on Wednesday night involving Qatari mediator Ali Al-Thawadi and Iranian Foreign Minister Abbas Araghchi.
During the negotiations, Al-Thawadi held multiple conversations with US envoys Steve Witkoff and Jared Kushner, according to officials familiar with the discussions.
Preparations for a possible signing ceremony appear to be underway. Four US Air Force C-17 transport aircraft departed for Europe on Thursday carrying equipment that could support travel arrangements for senior US officials, including Vice President JD Vance, if an agreement is finalised.
The deal, jointly mediated by Qatar and Pakistan, is expected to be known as the Islamabad Agreement if both sides ultimately approve and sign the text.
“We are working with the parties to put the final touches on the deal and set a date for the signing ceremony,” the diplomat said.
