"The Islamabad Agreement": Inside the Draft Understanding Between Iran and the United States

A draft U.S.-Iran understanding, which President Donald Trump said could be signed in the coming days, would reopen the Strait of Hormuz immediately without transit fees, extend the ceasefire for 60 more days, and give Iran sanctions relief if it meets its obligations. According to a diplomat from one of the mediating countries and a senior American official, the arrangement is intended to keep the ceasefire in place, including the one between Israel and Hezbollah in Lebanon, while talks on Iran’s nuclear program continue during those 60 days.

The text also lays out a framework for dealing with Iran’s enriched uranium stockpile, but any practical step on the nuclear issue would depend on a second, more detailed agreement. The diplomat said the sides had agreed on the wording, but final approval was still required. As of Wednesday night, the deal had reportedly been approved at senior levels in Iran, though not yet by Supreme Leader Mojtaba Khamenei, according to two sources familiar with the matter. A Foreign Ministry spokesperson in Tehran said Iran had “not yet reached a final decision.” Trump said he expected a signing ceremony over the weekend.

Behind the scenes, the temporary accord was reached Wednesday night after hours of talks between Qatar’s mediator Ali al-Thawadi and Iranian Foreign Minister Abbas Araghchi. During the Tehran discussions, al-Thawadi also spoke several times by phone with Trump envoys Steve Witkoff and Jared Kushner, according to two sources. The agreement reportedly surprised Prime Minister Benjamin Netanyahu, who in recent days had been left in the dark and tried to obtain information through allies close to the Trump administration.

Under the draft, Iran would commit not to obtain nuclear weapons and to resolve the dispute over its enriched uranium. A senior American official said Trump agreed one option would be to dilute highly enriched uranium inside Iran under U.N. inspectors’ supervision. The mediator said the draft “goes into detail on all nuclear issues” and “meets all American demands,” but the practical steps would only follow a later deal that remains uncertain.

The text also calls for restoring shipping through Hormuz to prewar levels within 30 days, while the U.S. blockade would be lifted. Senior Americans said Iran would first receive a temporary sanctions waiver allowing oil sales for 60 days, with further relief tied to compliance and “good faith” in the next round of talks. A major unresolved issue is the fate of billions of dollars in frozen Iranian funds abroad. Iran wants some of the money released immediately, while Washington wants staged access; separately, the U.S., Iran and Qatar have discussed allowing some frozen funds in Qatar to be used for humanitarian purchases. The accord, brokered jointly by Qatar and Pakistan, is expected to be called the “Islamabad Agreement” if both sides ultimately sign it.