The United States and Iran appear to be moving towards a preliminary agreement aimed at halting the current conflict and containing further escalation. According to a draft understanding reviewed by diplomatic and American sources, the proposed deal centres on the immediate reopening of the Strait of Hormuz without transit fees, in exchange for a gradual and conditional easing of sanctions imposed on Tehran.
According to a diplomat from a mediating country and a US official, the understanding includes extending the ceasefire for 60 days, including the Lebanese front, to allow time for more extensive negotiations on Iran’s nuclear programme. Any major implementation measures would be postponed until a second and more detailed agreement is reached.
What Happened in the Final Hours?
Sources indicate that the breakthrough came after intensive discussions on Wednesday night, led by Qatari mediator Ali Al Dhawadi with Iranian Foreign Minister Abbas Araghchi, alongside direct communications with Steve Witkoff and Jared Kushner, envoys of US President Donald Trump.
Intensive diplomatic efforts led by Qatar, Pakistan and the United Arab Emirates reportedly helped prevent an imminent military escalation between the United States and Iran. The development followed Trump’s decision to step back from threats of a severe strike against Tehran after receiving assurances that a preliminary agreement was close.
According to US officials and a diplomat familiar with the discussions, the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani, UAE President Sheikh Mohamed bin Zayed Al Nahyan, and Pakistan Army Chief General Asim Munir held direct and extensive talks with Trump to persuade him to abandon the military option, arguing that an initial understanding was within reach.
One US administration official stated that Trump acknowledged the intervening countries possessed influential communication channels with Tehran and Supreme Leader Mojtaba Khamenei. Their messages regarding the likelihood of an imminent agreement were reportedly a decisive factor in his decision to step back from military action.
Preparatory Steps
US sources familiar with the matter said that four American C-17 cargo aircraft departed for Europe carrying logistical equipment, in what is being viewed as a preparatory step for a possible signing ceremony in Geneva that could be attended by the Vice President.
Key Elements of the Proposed Understanding
Available information suggests that the first phase of the agreement focuses on reopening the Strait of Hormuz and ending US restrictions affecting navigation through the waterway. This would serve as a confidence-building measure ahead of more complex negotiations concerning Iran’s nuclear programme.
US Secretary of State Marco Rubio reportedly informed Congress that resolving the nuclear file would take significantly longer, describing the Strait of Hormuz issue as the practical entry point for broader de-escalation efforts.
The Nuclear File
The proposed agreement includes Iranian commitments not to pursue a nuclear weapon. One option under discussion would involve reducing domestic uranium enrichment levels while remaining under international supervision. However, no practical measures would be implemented until a follow-up agreement is reached.
According to Axios, a senior US official said Trump had agreed that lowering Iranian uranium enrichment levels within Iran and under the supervision of United Nations inspectors could form part of a potential solution to the crisis.
Hormuz and Sanctions Relief
The understanding would restore maritime traffic through the Strait of Hormuz to pre-war levels within 30 days. In return, the United States would gradually ease restrictions, including temporary exemptions allowing Iranian oil sales for 60 days, providing Tehran with important economic relief.
Sources indicated that sanctions relief could expand further if Iran complies with the preliminary agreement and demonstrates what US officials described as “good faith” during subsequent negotiations.
The same sources stressed that there is no predetermined timeline for lifting sanctions, with any future relief tied directly to the level of Iranian compliance.
Frozen Assets
The issue of frozen Iranian assets remains unresolved. Tehran is reportedly seeking an immediate financial release, while Washington continues to favour a gradual process linked to compliance benchmarks.
Sources said that recent discussions involving the United States, Iran and Qatar explored a mechanism that would allow Tehran access to some of its frozen funds held in Qatar, solely for the purchase of humanitarian goods.
Iranian Reservations
While Trump expressed strong optimism, stating that the agreement could be signed as early as the weekend and suggesting that a major settlement was nearly complete pending final drafting, officials in Tehran struck a more cautious tone.
Iranian Foreign Ministry spokesperson Esmail Baghaei stressed that no final formula had yet been reached despite significant progress. He reiterated that Iran remained committed to its red lines and would not make fundamental concessions.
Baghaei said:
“As of this moment, we have not reached a final formulation on this matter. It is an extremely important issue and is currently under review and evaluation by the relevant decision-making bodies. Once a final outcome is reached, it will certainly be announced.”
Israeli Concerns
Trump’s announcement that the agreement was effectively settled reportedly caught Israeli Prime Minister Benjamin Netanyahu by surprise. A US source familiar with the matter said Netanyahu found himself largely isolated from the negotiations during the final days, prompting him to seek updates through channels close to the Trump administration.
Initial assessments suggest that any agreement with Iran is likely to face Israeli opposition. Netanyahu had previously called for military action against Tehran in February after Iran rejected demands related to its nuclear programme.
Against this backdrop, Trump and Netanyahu held a phone call on Thursday to discuss the emerging agreement. According to a statement from the Israeli Prime Minister’s Office, Netanyahu stressed that any final agreement should include the removal of enriched nuclear material, the dismantling of enrichment infrastructure, strict restrictions on Iran’s missile programme, and an end to Iranian support for its regional allies.
