DUBAI – A memorandum between the United States and Iran to halt their war could be signed as soon as June 14, a source told Reuters on June 12, with Geneva emerging as the likeliest venue.
The source said language in the memorandum was still being finalised, and Iran was sticking to its position that the deal must also end fighting in Lebanon, where Israel has been battling against the Iran-backed Hezbollah militia.
The aim was to finalise the wording by June 13, so the agreement could be signed by US Vice-President J.D. Vance and Iran’s Parliament Speaker Mohammed Baqer Qalibaf.
No venue had been established, but Geneva was emerging as the likeliest.
US President Donald Trump said on June 11 he was calling off new strikes on Iran because the deal was now ready.
“We just made a great settlement of the war with Iran,” he told reporters.
But the terms of the deal, as described on June 12 by Iranian officials, appear to offer Tehran much of what it has demanded so far.
Trump appears to win little of what he has sought, beyond the reopening of the Strait of Hormuz, which Iran shut after he ordered attacks in February.
Iran’s state media said on June 12 that Tehran would not give up control over the strait.
“Iran makes no commitment in this text to cede the management of the strait or the restoration of conditions that existed prior to the American and Israeli military aggression,” according to the official IRNA news agency, which referred to “the broad outlines of the current text” being finalised.
A senior Iranian source told Reuters on June 12 that the draft would waive sanctions on Iran’s oil, unfreeze billions of dollars of its funds, and require a cessation of hostilities on all fronts, including in Lebanon.
Nuclear issues would be set aside for later talks. Washington wants a deal to ensure that Iran never develops a nuclear weapon. Iran says it is not seeking one.
The waiving of sanctions, unfreezing of Iranian assets and halt to Israeli attacks on Lebanon are essential Iranian demands. The source made no mention of what Iran might offer in return. There was no immediate response from the United States.
An emerging “memorandum” between Tehran and Washington calls for an end to Israeli incursions into Lebanon.
PHOTO: REUTERS
Iran’s Mehr news agency said the terms also included other key US concessions, including a commitment to withdraw American forces from around Iran and present a plan for rebuilding the shattered Iranian economy.
“The United States and its allies must submit plans for Iran’s reconstruction worth at least US$300 billion (S$385 billion),” the Mehr report said.
Trump’s announcement of a deal – hours after he threatened again to hit Iran “very hard” late on June 11 – prompted global shares to rally and oil prices to slide on June 12. Brent crude prices were down more than 2 per cent in European morning trade.
Throughout the war, which began on Feb 28 with US and Israeli strikes on Iran, Trump has made similar declarations that a deal was at hand, only for no deal to emerge.
But markets took comfort that his latest words signalled the end of a particularly tense few days of escalation that began with Iran and Israel trading fire for the first time since an April ceasefire.
Clashes continued through two days of US strikes on Iran and Iranian return fire at US regional bases.
“The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” Trump said, adding that Vance would attend the deal signing.
Asked if Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal, Trump replied: “I understand the answer is yes.”
Iranian media reported Foreign Ministry spokesman Esmaeil Baghaei as saying on June 11 that large parts of the agreement had been finalised, but Iran would not compromise on its red lines.
Tension remained high around the Strait of Hormuz, with US forces shooting down two Iranian drones after Tehran attempted to strike commercial ships transiting the vital waterway, a US official said on June 11.
Iran’s military stopped a tanker from transiting the strait, state media said, reporting the sound of explosions early on June 12.
The conflict has become a political headache for the White House, with polls showing Trump’s approval ratings sinking amid voter anger over high petrol prices.
Some Republicans have openly worried that the war’s unpopularity could cost them control of Congress in November’s midterm elections.
Curbs on fighting in Lebanon could be difficult to accept for Israel, which started the war alongside the US in February but has not been included in peace negotiations.
Prime Minister Benjamin Netanyahu’s office said in a statement that Israel was not a party to any memorandum of understanding with Iran. REUTERS