U.S., Iran signal peace deal near as Tehran claims victory
By Steve Holland, Parisa Hafezi and John Irish
WASHINGTON/DUBAI/PARIS, June 12 (Reuters) – The United States and Iran signaled on Friday that a deal to end their war was near, while a senior U.S. administration official said both sides had agreed on a text and Washington expected to sign an initial agreement in the coming days.
Iranian Foreign Minister Abbas Araqchi said changes were still possible, but the interim agreement showed his country emerged stronger from the conflict.
“Iran is the winner of the war with the United States,” he said on state television.
Sources on all sides of the negotiations call for the proposed memorandum of understanding to reopen the Strait of Hormuz and lift the US naval blockade of Iranian ports. Negotiations on Iran’s nuclear program (for which US President Donald Trump cited the reason for starting the war) will take place later.
The US official, speaking on condition of anonymity, told reporters that the deal met Trump’s key goals and put the negotiations in a “very, very good place.”
Statements from Western, Pakistani and Iranian sources regarding the draft offer pointed out conditions that could be in Iran’s favor and led to criticism from Trump, who rejected the reports as erroneous.
Although there were minor differences in details, the proposals generally offered Tehran most of what it wanted; Trump appeared unable to deliver much beyond reopening the strait, which Iran closed after U.S. and Israeli attacks in February.
Araqchi said Iran, together with Oman, will maintain control of traffic in the strait, which met one-fifth of the world’s oil and natural gas supply before the war.
“Our sword will always hang over the Strait of Hormuz,” he said.
Iranian news agencies reported on Saturday that explosions were heard along the Iranian port of Sirik and the strait on the island of Qeshm; Residents and local officials attributed this to Iranian forces opening fire to warn ships trying to cross the waterway without permission from the Revolutionary Guard navy.
WHAT IS IN THE AGREEMENT?
Terms of the draft deal, disclosed to Reuters by multiple sources, show that in exchange for Iran opening the strait, the United States would begin releasing billions of dollars in frozen Iranian assets and waive sanctions on oil exports.
Iran’s nuclear program will be discussed in 60-day talks. The US official said the deal would ultimately lead to the end of Iran’s nuclear program and the destruction and elimination of its highly enriched uranium stockpile. The requirements also include an audit regime to ensure compliance in the long term.
But Iran, which sources say does not accept ending its nuclear program, wants to keep uranium in depleted form, Araqchi told state television. “The only preferred solution for Tehran for its highly enriched uranium stockpile is down-blending the material,” he said.
The sources said the proposals included discussing possible war reparations for Tehran and removing long-standing U.S. demands to limit Iran’s missile program. The US official disputed this account.
The official, who spoke on condition of anonymity, said, “Their money will not be released until they demonstrate. The Strait of Hormuz will be open. Funding will not be provided to terrorist groups from Iran.” “That’s what he agreed to. It’s a performance-based deal.”
ISRAEL IS NOT A PARTY TO THE MEMORANDUM
A Western source said the agreement could be signed on Sunday by US Vice President JD Vance and Iranian Parliament Speaker Mohammad Baqer Qalibaf, with Geneva seen as the most likely venue.
Araqchi said the agreement would be signed remotely before it was announced.
A US administration official said that Europe was discussed as a signing location, but no decision was made.
Israel, which started the war on the side of the USA, did not participate in the negotiations. Prime Minister Benjamin Netanyahu said his country would not be a party to the agreement.
Netanyahu has clashed with Trump in recent weeks over US demands that Israel halt military action in Lebanon to allow Washington to reach a deal with Tehran.
Araqchi said the agreement implied that the war in Lebanon would end and Israel would withdraw from occupied areas.
Israel’s defense minister said he would not withdraw. A senior Israeli official said Israel expects to maintain its freedom to act against threats in areas under its control.
OIL PRICE IS FALLING
The progress towards the deal comes at the end of a week that has led to a sharp escalation in hostilities in the Gulf, including Israeli-Iranian exchanges of fire and US strikes on Iranian targets, followed by retaliation against US bases.
Global stocks rose and oil prices fell on this news. Brent crude oil prices fell more than 3% to their lowest level in nearly two months.
The conflict has become a political headache for the White House due to rising fuel prices and declining approval ratings for Trump.
Some Republicans worry that unpopularity of the war could cause them to lose control of Congress in November’s midterm elections. But many of Trump’s fellow Republicans may have difficulty approving a deal seen as favorable to Iran.
Tehran has always said its nuclear program is peaceful and agreed to impose tight restrictions on it in exchange for the lifting of sanctions under a 2015 deal with then-President Barack Obama’s administration.
Trump abandoned that deal during his first term in 2018, and Iran responded by increasing its uranium enrichment, producing more than 400 kg (about 900 pounds) of the material near the purity needed to make a bomb.
(Reporting by Reuters bureaus; Writing by Andy Sullivan, Peter Graff and Ros Russell; Editing by Gareth Jones, Sanjeev Miglani and Edmund Klamann)
