Iran says peace deal with US ‘never been closer’ amid conflicting reports

A deal aimed at ending recent fighting between Iran and the United States is “never been closer,” according to Iran’s Foreign Minister Seyed Abbas Araghchi. Pakistani Prime Minister Shehbaz Sharif, who has been mediating the discussions, echoed this sentiment, stating that a final, agreed-upon text of a peace deal has been reached and Pakistan is working with both sides to finalize next steps.

U.S. President Donald Trump reposted Araghchi’s statement but cautioned against speculation regarding the deal’s content. Iranian media outlets had published details of the alleged agreement, which Trump stated were inaccurate and bore no relation to the agreed terms. Trump accused Tehran of leaking these details, calling them “very dishonorable people to deal with.” He also mentioned that “scheduled attacks” against Iran had been canceled due to the progress made in reaching a settlement.

Hostilities began with U.S. and Israeli strikes across Iran on February 28, according to the source. Iran responded with attacks on Israel and U.S.-allied states in the Gulf, and effectively closed the Strait of Hormuz, a significant shipping route for oil and liquefied natural gas. Despite agreeing to a ceasefire in April, both nations have exchanged intermittent fire, including two rounds of tit-for-tat strikes this week.

Israel is not directly involved in the talks, which have been primarily mediated by Pakistan. The goal of these negotiations is to extend the ceasefire and initiate discussions on key issues, including Iran’s nuclear program. Western countries have long accused Iran of attempting to build a nuclear weapon, an accusation Iran denies, stating its program is for peaceful purposes like electricity generation and research.

On Friday, Iran’s Mehr news agency published what it described as the terms of an agreement, listing demands from Tehran that the U.S. had reportedly been rejecting, and vice-versa. Reported details included the lifting of a U.S. naval blockade and compensation of “at least $300bn” for damages from U.S. and Israeli strikes. The alleged contents also stated Iran wanted the agreement endorsed by a UN Security Council resolution, and that final negotiations would not begin until half of Iran’s frozen assets were released, Iranian oil sanctions suspended, and the naval blockade lifted.

From the U.S. perspective, a senior administrative official told the BBC that the deal included expectations for the destruction and removal of nuclear material and the dismantling of the nuclear program. This official stated that no Iranian funds would be released until U.S. demands were met, the Strait of Hormuz opened, and Iran ceased funding groups like Hezbollah. U.S. Vice-President JD Vance posted on X that reporting about Iranians receiving cash or funds for simply signing a deal was inaccurate, emphasizing that the deal is structured to prioritize U.S. and allied concerns, with economic benefits flowing to Iran and the region only if obligations are met.

The Pakistani prime minister acknowledged an “incessant misinformation campaign” by those seeking to sabotage the deal. In a briefing call on Friday, a senior administration official estimated the odds of a deal being signed at 80% to 85%, attributing delays to complexities and “internal fractures” within Iran’s government. Officials reiterated that Iran would receive no immediate financial benefit after signing a Memorandum of Understanding, with the potential deal being “performance-based.” Rewards would be given for complying with obligations, such as turning over nuclear material or dismantling nuclear programs.

The official downplayed Iranian reporting as aimed at a domestic audience and containing inaccuracies. Regarding the possibility of Israeli military operations in Lebanon affecting the deal, the official expressed confidence that Israel and Gulf Cooperation Council countries would support the agreement while retaining their right to self-defense.