U.S. President Donald Trump indicated that a pact with Iran aimed at ending the recent hostilities could be formalised as early as Sunday, while Iranian authorities pushed back on that schedule but did not categorically rule out a signing in the near future.
Trump said that once the agreement is signed the Strait of Hormuz would be "open to all," and he also asserted that the United States would in time secure and destroy Irans nuclear material. Tehran, for its part, has described the proposed document as a memorandum of understanding and has highlighted key terms it expects to see addressed.
Iranian officials said the draft memorandum includes the lifting of the U.S. blockade on Iranian ports and the unfreezing of Iranian assets kept abroad. Foreign Minister Abbas Araghchi is reported to have said the nuclear dimension would be taken up in a subsequent phase of talks rather than in the initial understanding.
One specific technical preference Iran has stated is that its enriched uranium should be diluted within the country. President Trump characterised the arrangement as a guarantee that Tehran will not obtain a nuclear weapon. Despite those broad statements, several important details remain unresolved and questions persist over the exact terms and sequencing of the agreement.
Among those outstanding issues is how to manage transit through the Strait of Hormuz. Iran has indicated it would seek to charge for services provided in the waterway, while the U.S. position has been that the strait should be reopened to traffic without delay.
The potential deal has unfolded against a backdrop of continued violence elsewhere in the region. In Lebanon, Israeli strikes persisted across southern areas even as reports emerged of progress in U.S.-Iran discussions. Israeli attacks killed at least five people in Lebanon on Saturday, according to available reports, and Hezbollah said it launched multiple drone and rocket strikes on Israeli military positions.
Israel has stated it is not a party to the U.S.-Iran talks and has signalled it intends to preserve freedom of action against perceived threats. In Gaza, Israeli strikes also continued, with Palestinian authorities reporting two fatalities in Khan Younis.
The proposed understanding follows months of fighting that disrupted shipping through the Strait of Hormuz and contributed to higher oil prices. Trump has described the plan as a diplomatic breakthrough, while Iranian officials have framed it as a first step toward broader negotiations. Further rounds of talks are expected to confront issues including sanctions relief, the release of frozen assets, and the future of Irans nuclear programme.
Summary
An apparent memorandum of understanding between the U.S. and Iran may be signed soon, according to President Trump, who said the Strait of Hormuz would reopen and that the U.S. would secure and destroy Irans nuclear material. Iran disputes the immediate timing, says the initial pact would lift a U.S. blockade and unfreeze assets, and expects the nuclear question to be addressed in a later phase. Continued violence in Lebanon and Gaza, unresolved details on fees or access through the Strait, and outstanding terms on sanctions and nuclear safeguards leave significant uncertainties.
Key points
- President Trump said an agreement with Iran could be signed as early as Sunday and that the Strait of Hormuz would be open to all afterward - impacts maritime traffic and energy markets.
- Iranian officials described a proposed memorandum of understanding that would lift the U.S. blockade on Iranian ports and free frozen Iranian assets; the nuclear issue is slated for a second phase of talks.
- Violence in Lebanon and Gaza continues despite reported progress in negotiations, underscoring regional security and defence sector risks.
Risks and uncertainties
- Timing and final terms remain unclear - the proposed signing date is disputed by Tehran, creating uncertainty for shipping and oil markets.
- Key provisions are unresolved, including charges Iran seeks for services in the Strait of Hormuz versus the U.S. demand for immediate reopening - this affects maritime operations and energy transit.
- Ongoing hostilities in Lebanon and Gaza could undermine diplomatic progress and sustain defence-related market pressures.