The United States and Iran are in the final stages of drafting a memorandum of understanding (MoU) aimed at formally ending the ongoing war, de-escalating tensions, and restoring maritime traffic through the strategically vital Strait of Hormuz, according to diplomatic sources and statements from both sides.

The proposed framework, mediated primarily by Pakistan, is not a comprehensive final peace treaty but a foundational agreement outlining immediate political, military, and maritime steps. It notably excludes Iran’s nuclear program, which would be addressed in a separate negotiating track expected to begin within 30 days of signing.

The proposed memorandum includes several key elements, such as a formal declaration ending the war, the withdrawal of the US naval fleet from areas surrounding Iran along with the lifting of the American naval blockade, the release of approximately half of Iran’s frozen assets — estimated at around $12 billion — and the full reopening of the Strait of Hormuz to international shipping.

Pakistani officials described the progress as “encouraging,” with both sides working through a roughly 14-point draft memorandum.

Trump: Deal “Largely Negotiated”

US President Donald Trump announced on Saturday that a deal with Iran has been “largely negotiated,” with only final details remaining. In a Truth Social post from the Oval Office, Trump said he held discussions with leaders from Saudi Arabia, the UAE, Qatar, Pakistan, Türkiye, Egypt, Jordan, and Bahrain regarding the memorandum focused on “peace” in the region.

Trump added that he spoke separately with Israeli Prime Minister Benjamin Netanyahu, describing the conversation as having “gone very well.” He emphasized that the agreement would lead to the reopening of the Strait of Hormuz after months of disruptions caused by the conflict.

The war erupted in late February 2026 with US and Israeli strikes on Iranian targets. A fragile two-week ceasefire was brokered by Pakistan in early April and has since been extended multiple times amid ongoing indirect talks.

Iranian Position

Iranian officials have described the document as a “framework agreement” for ending the “imposed war” and addressing key national interests, while stressing that the nuclear file remains separate. Foreign Ministry spokesperson Esmail Baghaei noted that Tehran submitted a revised proposal through Pakistani mediators, with expectations of a US response soon.

Some Iranian sources have pushed back on Trump’s characterization of the deal being nearly complete, calling certain public statements inconsistent with private negotiations, though both sides acknowledge significant progress.

The Strait of Hormuz, through which roughly one-fifth of global oil and liquefied natural gas passes, has been severely disrupted by the conflict, contributing to higher energy prices worldwide. Reopening the waterway is seen as a critical confidence-building measure for global markets.

Analysts note that successful implementation of the MoU could pave the way for broader de-escalation, including limits on Iran’s nuclear activities, ballistic missile program, and regional proxy support in subsequent talks. However, significant challenges remain, particularly regarding verification mechanisms and sanctions relief.

Trump indicated that an official announcement could come within days once the remaining details are ironed out. This development marks the most substantial diplomatic breakthrough since the April ceasefire and offers cautious hope for ending a conflict that has reshaped Middle East security dynamics. (ILKHA)