US and Iran Edge Closer to Historic Peace Deal

The United States and Iran are nearing a peace agreement mediated by Pakistan to end the Iran-War, according to reports from dpa and afp. The deal focuses on reopening the Strait of Hormuz and lifting U.S. naval blockades, though a resolution regarding Iran’s 400kg of highly enriched uranium remains the primary obstacle.

When will the U.S.-Iran peace deal be signed?

Timeline estimates for the agreement vary between the involved parties. U.S. President Donald Trump stated on Truth Social that the signing is planned for Sunday, followed immediately by the reopening of the Strait of Hormus.

However, Iranian Foreign Ministry spokesperson Esmail Bakaei told the state news agency Irna that a deal will not happen on Sunday, but rather “in the coming days.” This contradicts an earlier statement from Pakistani Prime Minister Shehbaz Sharif on X, who predicted a finalization within 24 hours and prepared for an “electronic signing” of the treaty.

What happens to the Strait of Hormuz under the deal?

The framework agreement requires the reopening of the Strait of Hormuz within 30 days, according to President Trump. In exchange, the U.S. will lift its naval blockade of Iranian ports.

The urgency of this move follows reports from U.S. Central Command (Centcom) that U.S. forces recently shot down several Iranian drones targeting commercial ships in the strait. Iran has largely blocked this passage—vital for global oil, gas, and fertilizer trade—since the conflict began in February.

Foreign Minister Abbas Araghtschi told Iranian state television that the management of the strait “will not be as it was before,” signaling a fundamental change in how the waterway is governed.

How will the nuclear dispute be resolved?

The most contentious point is Iran’s stockpile of approximately 400kg of highly enriched uranium. A solution must be reached within 60 days of the framework agreement’s signing, a tight window compared to the 2015 Vienna Agreement, which took nearly two years to negotiate.

The two sides are split on the method of disposal:

• The U.S. Position: A high-ranking U.S. official stated that enriched uranium must be neutralized on-site and then removed from the country.
• The Iranian Position: Abbas Araghtschi argued that the only viable path is to dilute the material within Iran.

CNN reported that the U.S. considered a more aggressive approach in May. Two sources told the network that a high-ranking U.S. General made a secret visit to Florida to review plans for deploying ground troops to forcibly seize the uranium.

What are the financial terms of the agreement?

The deal involves the release of frozen Iranian assets abroad, though Washington officials say this will not happen immediately upon signing. Sanctions relief and fund releases are contingent on Tehran providing specific “counter-performance.”

There is a significant gap in the valuation of these assets. According to Sascha Lohmann of the Stiftung Wissenschaft und Politik (SWP) in Berlin, the frozen funds are estimated between $90 billion and $140 billion. Conversely, the Iranian government has recently requested the release of $24 billion.

How is Israel reacting to the potential deal?

Israeli Prime Minister Benjamin Netanyahu faces internal pressure as he approaches elections in four months. His office stated that Netanyahu remains committed to ensuring Iran never possesses nuclear weapons, a goal he claims is shared by President Trump.

Reports indicate that Netanyahu originally hoped the war, which began February 28, would trigger a regime change in Tehran. While the conflict resulted in the death of Supreme Leader Ali Khamenei—whose funeral is scheduled for July 4 through July 9—the Iranian power structure appears stable enough to maintain its current course.

Domestic rivals now accuse Netanyahu of turning Israel into a “vassal state” by accepting Trump’s peace terms. Meanwhile, Trump faces pressure from U.S. voters struggling with the cost of living to justify the expense of the war if nuclear materials remain in Iran.

Frequently Asked Questions

Who is mediating the U.S.-Iran peace talks?
The government of Pakistan, specifically Prime Minister Shehbaz Sharif, is acting as the primary mediator between Washington and Tehran.

What is the main sticking point in the negotiations?
The disposal of roughly 400kg of highly enriched uranium and whether it should be diluted inside Iran or removed from the country entirely.

When is the funeral of Ali Khamenei?
According to Iranian state radio, ceremonies will take place in Tehran on July 4-6 and in Ghom on July 7, with burial in Maschhad on July 9.

Will the U.S. lift sanctions immediately?
No. Washington officials have indicated that sanction easing and the release of frozen assets will only occur after Iran meets specific requirements.

What happens to the shipping lanes in the Gulf?
The deal proposes reopening the Strait of Hormuz within 30 days in exchange for the removal of the U.S. naval blockade on Iranian ports.

What do you think about the 60-day window for the nuclear deal? Is it realistic or a political deadline? Let us know in the comments below or subscribe to our geopolitical newsletter for real-time updates.