As a key third-party mediator, Pakistani Prime Minister Shehbaz Sharif confirmed on social media on June 12 that Iran and the United States have reached an agreement on the final text of a peace deal. Pakistan is now working closely with both sides to finalize the next steps.
According to reports, Iranian Foreign Minister Abbas Araghchi disclosed part of the draft Iran-U.S. memorandum of understanding during a program on the Islamic Republic of Iran Broadcasting network, covering details on ceasefire arrangements, shipping in the Strait of Hormuz, and economic issues.
The current negotiation framework is divided into two phases. Phase one focuses on ending the conflict and restoring regional stability. It will be signed via remote electronic means, possibly within the next few days. Phase two involves formal negotiations on nuclear issues and related matters.
According to the U.S. side, if an agreement is finalized, Iran and the U.S. might sign it during the G7 summit in Évian-les-Bains, France next week, or as early as this Sunday. Geneva, Switzerland, is being discussed as a potential signing location.
Araghchi emphasized that Iran is highly vigilant about the U.S.’s ability and willingness to fulfill its commitments. They plan to use “phased arrangements and strict implementation mechanisms” to prevent any side from defaulting.
Saudi Al Arabiya TV earlier revealed that the new agreement includes details such as extending the ceasefire by 60 days. During this period, the U.S. and Iran will hold talks on Iran’s uranium enrichment issues.
According to Araghchi, the memorandum covers ending military conflicts on all fronts, including Lebanon. Iran has clearly informed the U.S. that reaching a deal requires Israel to withdraw from southern Lebanon. Based on current discussions, the U.S. would commit to not initiating war or threatening with force; both sides would respect each other’s sovereignty and avoid interfering in internal affairs.
On the Strait of Hormuz shipping issue, the U.S. lifting its maritime blockade of Iran is one of the first and most emphasized points in the memorandum. Araghchi said the Strait’s sovereignty belongs to Iran and Oman, both of which have long ensured navigation safety and provided related services. Future management mechanisms will be adjusted, won’t simply revert to pre-war models, and shipping services will involve a fee.
On the economic front, Iran’s frozen overseas assets will gradually be unfrozen. Regarding war reparations, both sides are discussing a reconstruction and economic development plan.
On nuclear issues, Iran hasn’t made any substantive decisions yet, leaving these topics for later negotiations. Iran insists that if existing high-enriched uranium stocks need to be addressed, the only acceptable method is “dilution treatment” within Iran, not transfer abroad.
He concluded that the memorandum hasn’t been finalized yet, and its contents may still be adjusted. Iran will release specific details after finalization. If its terms aren’t implemented, final agreement negotiations can’t proceed. Iran is currently in the final stages of compiling the memorandum’s text.
Araghchi also posted on social media on June 12, saying Iran and the U.S. have “never been so close” to reaching a memorandum of understanding. He urged the media to avoid speculating on its contents before finalization.
A senior U.S. government official also confirmed that Washington is “80% to 85%” confident about signing a memorandum with Iran in the coming days, and is “confident” that Israel will support this deal.
Driven by positive news, international oil prices fell sharply on June 12. At the close, light crude oil futures for July delivery on the New York Mercantile Exchange dropped $2.83 to $84.88 per barrel, a 3.23% decline. Brent crude oil futures for August delivery on the London ICE Futures Exchange fell $3.05 to $87.33 per barrel, a 3.37% decline.
