U.S.-Iran Peace Memorandum Could Be Signed On Sunday In Geneva: Reuters

DUBAI/WASHINGTON/PARIS, June 12 (Reuters) – A memorandum between the United States and Iran to stop the war in the Gulf could be signed on Sunday, a Western source told Reuters on Friday, with Geneva emerging as the most likely venue.

The source said the text of the memorandum was still being finalized and Iran remained true to its position that the agreement should also end the conflict in Lebanon, where Israel is fighting against Iran-backed Hezbollah militias.

The aim was to complete the text by Saturday so that the agreement could be signed by US Vice President JD Vance and Iranian Parliament Speaker Mohammad Baqir Qalibaf. A venue had not yet been determined, but Geneva was emerging as the most likely location.

Trump said Thursday he was canceling new strikes on Iran because the deal is now ready.

“We have reached a great resolution in the war with Iran,” Trump told reporters at the White House on Thursday.

But the terms of the deal announced by Iranian officials on Friday appear to offer Tehran most of what it has demanded so far; Trump appears to have won little of what he wanted, beyond reopening the Strait of Hormuz, which Iran closed after ordering the attack in February.

A senior Iranian source told Reuters on Friday that the draft would waive sanctions on Iranian oil, release billions of dollars of its funds and require a cessation of hostilities on all fronts, including Lebanon.

Nuclear issues will be left to later discussions. Washington wants a deal that ensures Iran never develops nuclear weapons; Iran, on the other hand, says it is not seeking such a thing.

Lifting sanctions, unfreezing Iranian assets, and stopping Israeli attacks on Lebanon are Iran’s main demands. The source did not mention what Iran might offer in return. There was no immediate response from the United States.

Iran’s Mehr news agency said the terms also included other key concessions, including a US commitment to withdraw its forces from Iran’s perimeter and present a plan to rebuild the shattered Iranian economy.

The Mehr report said, “The United States and its allies should present plans worth at least $300 billion for the reconstruction of Iran.”

Trump’s announcement of the deal just hours after he threatened to hit Iran “very hard” on Thursday night sent global stocks higher and oil prices lower on Friday. Brent crude oil prices fell more than 2% in European morning trade.

Throughout the war, which began with US and Israeli attacks on Iran on February 28, Trump made similar statements that a deal was close, but no deal emerged.

But markets were relieved that Trump’s latest remarks marked the end of a particularly tense few days of tensions that began when Iran and Israel exchanged fire for the first time since a ceasefire in April and continued for two days as the US attacked Iran and Iran opened fire in return on US regional bases.

“As soon as we sign, the strait will be officially opened, this will be very soon, very soon, maybe by the weekend in Europe,” Trump said, adding that Vance would attend the signing ceremony of the agreement. He did not explain in detail.

Asked whether Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the agreement, Trump said, “I understand the answer is yes.”

Iranian media reported that Foreign Ministry spokesman Esmaeil Baghaei said on Thursday that most of the agreement had been completed, but that Iran would not compromise on its red lines.

Tensions remain high around the Strait of Hormuz as U.S. forces shot down two Iranian unidirectional attack aircraft after Tehran tried to strike commercial ships passing through the vital waterway, a U.S. official said Thursday.

State media reported explosions early Friday and said the Iranian military had blocked a tanker from passing through the strait.

The conflict became a political headache for the White House; Polls show Trump’s approval ratings falling amid voter anger over high gas prices.

Some Republicans openly worry that unpopularity of the war could lead to them losing control of Congress in November’s midterm elections.

It may be difficult for Israel, which started the war on the side of the United States in February but was not included in the peace talks, to accept the limitation of conflicts in Lebanon.

In the statement made by Prime Minister Benjamin Netanyahu’s office, it was stated that Israel is not a party to any memorandum of understanding with Iran.

(Reporting by Reuters bureaus; Writing by Lincoln Feast and Gareth Jones; Editing by Clarence Fernandez and Peter Graff)