US, Iran closer to deal to end Middle East war: officials

The United States and Israel, in their 105th day of war with Iran, are closer than ever to reaching an agreement to end the Middle East conflict, with mediating nation Pakistan also optimistic that a previously elusive deal is within reach, US and Iranian officials said today.

Here is a compilation of the latest developments in the Middle East war.

US and Israel Moves

The United States and Iran said they are close to signing a memorandum of understanding to end the war. A senior US official said the two sides have reached consensus on the text, and Washington expects to sign this preliminary agreement in the coming days.

Sources close to the negotiations said the proposed memorandum of understanding requires the reopening of the Strait of Hormuz and the lifting of the US maritime blockade on Iranian ports. Negotiations on Iran's nuclear program will be conducted at a later date, the reason US President Donald Trump initiated the war under the pretext of curbing Iran's nuclear program.

Israel, which jointly launched the war with the United States, did not participate in the negotiations. Israeli Prime Minister Benjamin Netanyahu said Israel would not be a signatory to this memorandum.

Senior US government officials stated that the US has an "80% to 85% certainty" of signing a peace agreement with Iran in the coming days.

"If you asked me this morning how confident I was about signing the agreement, I might have said 75%, but now it has increased to about 80% to 85%. However, it has not yet reached 100%," the official added.

Less than hours after both the US and Iran announced that an agreement to end the war was closer than ever, the US military announced it had shot down multiple Iranian drones targeting commercial vessels in the Strait of Hormuz.

The US Central Command, responsible for military operations in the region, posted on social media platform X that Iran "launched multiple one-way attack drones in an attempt to strike commercial vessels transiting the Strait of Hormuz. US forces have shot down all of these drones in the past several hours, and traffic in the strait remains unimpeded."

Iranian Moves

Iranian Foreign Minister Abbas Araghchi said that the draft agreement reached with the United States, once finalized, will be signed "remotely," which could happen "in the coming days."

He said earlier that the framework for the "Islamic Islamabad Memorandum of Understanding," aimed at ending the US-Iran war, "has never been closer to being reached."

Iran's semi-official Mehr News Agency revealed the draft agreement between Tehran and Washington today, which, if accepted by all parties, would lead to the unfreezing of Iran's frozen assets totaling $24 billion within 60 days.

According to the official Islamic Republic News Agency (IRNA), based on the draft agreement with the United States, Tehran will not relinquish control over the strategic Strait of Hormuz.

Oil, Stock, and Currency Dynamics

International crude oil prices fell sharply today as the United States and Iran are expected to reach a peace agreement, and signs indicate a recovery in transport volume through the Strait of Hormuz.

July futures for West Texas Intermediate crude oil on the New York market fell 3.7% to close at $84.43 per barrel. August futures for North Sea Brent crude oil on the London market fell 3.6% to close at $87.13 per barrel.

Other Countries and Organizations

Pakistani Prime Minister Shehbaz Sharif said the final text of the US-Iran peace agreement has been agreed upon by all parties.

Sharif posted on social media platform X: "We can confirm that a final peace agreement text, agreed upon by the US and Iran, has been reached, and Pakistan is currently working closely with both sides to finalize the next steps."

The Swiss Foreign Ministry told AFP that Switzerland has offered to host the signing ceremony for a potential peace agreement between the US and Iran, stating that "Switzerland is fully committed to the relevant work and maintains close contact with the United States and Iran."

Four sources indicated that the United Arab Emirates has agreed to release billions of dollars to Iran. This wealthy Persian Gulf Arab nation, which was attacked by Iran for weeks during the US-Israel war against Iran, has now made a strategic shift.

Two regional sources told Reuters that the UAE has agreed to release a total of $10 billion, of which more than $3 billion has already been paid.