Iran says it has agreed not to pursue a nuclear weapon and to reopen the Strait of Hormuz in exchange for the release of about $25 billion in frozen assets under a peace agreement reportedly brokered by US President Donald Trump.
Details of the proposed deal were released by Tehran on Sunday, with Iranian officials expressing cautious optimism that an end to more than three months of conflict could be within reach, according to the New York Postthe New York Post.
The war has rattled global markets and severely disrupted shipping through the Strait of Hormuz, a strategic waterway that previously carried around 20 per cent of the world’s oil supply.
On Saturday, President Trump and Pakistani Prime Minister Shehbaz Sharif said an agreement would be signed later today, June 14, and would lead to the immediate reopening of the strait.
An Iranian Foreign Ministry spokesperson indicated that a breakthrough could come within days.
According to Pakistani officials, the proposed arrangement would provide a 60-day framework for technical negotiations between Washington and Tehran. While it would not resolve every dispute between the two countries, it is seen as a significant step towards de-escalation.
As part of the deal, the United States would unfreeze $25 billion in Iranian assets and lift its blockade on Iranian-linked vessels passing through the Strait of Hormuz.
Shipping traffic through the narrow passage has slowed dramatically since the conflict began, raising concerns across global energy markets.
Qatari mediators arrived in Tehran on Sunday morning in coordination with Washington to help finalise the agreement.
A signing ceremony is reportedly being planned in Geneva, Switzerland, where American and Iranian negotiators held discussions earlier this year before hostilities erupted.
US Vice President JD Vance is expected to lead the American delegation, while Iran is set to be represented by parliamentary speaker Mohammad Bagher Ghalibaf, the country’s chief negotiator.
However, uncertainty remains over the timing of any diplomatic meeting. Iran’s Foreign Ministry said on Saturday that there were no immediate plans for its negotiating team to travel to Geneva or any other location in the coming days.
President Trump is expected to stay in Washington on Sunday to attend a UFC event at the White House, which coincides with his 80th birthday.
The diplomatic developments come amid fresh tensions in the region. Israel’s military announced on Sunday that it had launched strikes on Hezbollah targets in Beirut, saying the operation was a response to attacks on northern Israel.
Israeli Prime Minister Benjamin Netanyahu said the strikes were aimed at Hezbollah infrastructure in the Lebanese capital.
Iran, the group’s principal backer, previously responded to Israeli attacks on Beirut with missile strikes on Israel last weekend.
Tehran has also maintained that any ceasefire agreement with the United States must include an end to Israeli military operations in Lebanon.
