US-Iran peace deal soon? Iranian FM Abbas Araghchi shares update, says MoU has 'never been closer'

Hours after US President Donald Trump on Friday (local time) called Iran's leaked terms for a peace deal "untrue", Iranian Foreign Minister Abbas Araghchi said the memorandum of understanding (MoU) has "never been closer".

In a post on X+, Araghchi wrote, “The Islamabad Memorandum of Understanding has never been closer. Pending its finalisation, the media should refrain from entering speculation about its content. In line with our responsible and transparent approach, all details will be shared with the public in due course.”

News agency AP, citing three regional officials, said Washington and Tehran are close to signing an agreement aimed at ending the war. A senior US official also stated that the tentative deal includes terms for removing and destroying nuclear material from the Islamic Republic.

Araghchi's remarks come at a time when expectations have grown over the past few days that the two sides are on the verge of an accord, despite tensions and sticking points remaining.

The apparent breakthrough in negotiations comes after Iran exchanged fire with the US and Israel over three days this week, threatening to return the Middle East to full-scale war.

Trump slams Iran for leaked terms

Earlier today, the US President, in a Truth Social post, slammed Iran for the leaked terms. He wrote, "The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing. What they said, including their weak and pathetic statement on having a deal, bears no relation to the truth. Very dishonorable people to deal with. With them, there is no such thing as dealing in good faith."

What did the draft text include?

On Friday, Iran's state media reported that under a draft agreement with the US, Tehran would not give up control over the strategic Strait of Hormuz. "Iran makes no commitment in this text to cede the management of the strait or the restoration of conditions that existed prior to the American and Israeli military aggression," according to the official IRNA news agency, which referred to "the broad outlines of the current text" being finalised.

Iran's Mehr news agency quoted a source close to the negotiating team and published what it said was the text of a draft deal being finalised. The draft, according to the report, envisages an end to the conflict across all fronts, including Lebanon, the release of $24 billion in Iranian assets that remain frozen abroad, and the establishment of a 60-day window for talks on Tehran's nuclear programme.

It further provides for the "suspension of sanctions on the sale" of Iranian oil and petrochemical products, as well as "the complete lifting of the US naval blockade" on Iranian ports that has been in effect since 13 April.

Mehr reported that the draft also highlights the need for the United States and its allies to compensate Iran for war-related damage and "to present reconstruction plans for Iran amounting to at least $300 billion".

It added that "final negotiations will not begin before the release of half of Iran's blocked funds, suspension of Iran's oil sanctions, and lifting of the naval blockade".

Iran's nuclear programme has remained a major point of contention for Washington, which has consistently maintained that Tehran should end its uranium enrichment activities and move its stockpile of highly enriched uranium out of the country.

Traffic through Hormuz, a vital global shipping route, has come under Iranian control since the outbreak of the war. Iran, which has only allowed a trickle of ships to pass through the strait, has insisted that vessels obtain permission from its armed forces before transiting.

As Iranian officials indicate that a peace deal is close, the US President has slammed the Islamic Republic. The contradictory statements from both countries continue to keep the global economy on edge. While Islamic Republic officials claim that Tehran would not cede control over Hormuz and will continue to exercise its right to enrich uranium, the US President has consistently maintained that Iran would have to give up uranium enrichment. However, it remains to be seen what the final agreement will include.