Islamabad Deal Details Emerge in Proposed US-Iran Understanding

A draft US-Iran memorandum of understanding, which President Donald Trump said could be signed in the coming days, would reopen the Strait of Hormuz without transit fees, extend the ceasefire in Lebanon by 60 days, and give Iran sanctions relief if it meets its commitments. According to a diplomat from one of the mediating countries and a senior US official, the agreement would also keep negotiations on Iran’s nuclear program going during those 60 days, including talks tied to the ceasefire between Israel and Hezbollah.

The text reportedly addresses Iran’s stockpile of enriched uranium, but any practical move on the nuclear issue would depend on a second, more detailed agreement. The diplomat said the sides had reached agreement on the wording, though final approval was still needed. By Monday evening, the deal had been approved at high levels in Iran, but apparently not yet by Supreme Leader Mojtaba Khamenei, according to two sources familiar with the matter. Trump said he expected a signing ceremony over the weekend, while an Iranian Foreign Ministry spokesman said Tehran had not reached a final decision.

A source with direct knowledge said the White House had repeatedly believed a deal was close in recent months, only for talks to collapse, but this time the diplomat was optimistic the text would be approved. Four US Air Force C-17 transport planes flew to Europe on Thursday carrying equipment ahead of a possible trip by Vice President J.D. Vance to a signing ceremony in Geneva in the coming days.

The deal was reportedly reached late Wednesday after hours of talks between Qatari mediator Ali al-Thawadi and Iranian Foreign Minister Abbas Araghchi, with al-Thawadi also phoning Trump envoys Steve Witkoff and Jared Kushner. The arrangement reportedly surprised Prime Minister Benjamin Netanyahu, who tried in recent days to get information through allies close to the Trump administration. The draft also sets out nuclear commitments, including a pledge by Iran not to obtain nuclear weapons, and a plan to dilute highly enriched uranium inside Iran under UN inspectors, while broader practical steps would wait for a second accord.

The understanding would allow immediate reopening of Hormuz, a return to prewar shipping volumes within 30 days, and temporary sanctions waivers so Iran could sell oil for 60 days, with further relief contingent on compliance and good faith. A major unresolved issue is the fate of billions of dollars in frozen Iranian funds abroad. Iran wants some money released immediately, while Washington wants phased release tied to compliance. The countries have also discussed allowing Iran access to some frozen funds in Qatar to buy humanitarian goods such as food and medicine. If signed, the deal is expected to be called the “Islamabad Agreement.”