By Parisa Hafezi, Phil Stewart and Steve Holland
DUBAI/WASHINGTON, June 12 — The United States and Iran revealed significant progress toward a comprehensive agreement to de-escalate hostilities, with officials confirming both sides have finalized a draft text following weeks of intense negotiations. A senior U.S. administration official indicated the deal could be formalized by Sunday, with potential signing by U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammad Baqer Qalibaf in Geneva. The agreement aims to end over seven decades of dormant conflict and stabilize critical maritime routes.
Iranian Foreign Minister Abbas Araqchi acknowledged the accord’s complexity, stating, “While adjustments remain possible, the preliminary agreement underscores Iran’s strategic resilience and pivotal role in regional diplomacy.” The deal prohibits neither side from directly addressing domestic political debates, focusing instead on mutual de-escalation frameworks.
Diplomatic activity erupted just hours after U.S. military actions intercepted multiple Iranian drones targeting the Strait of Hormuz—a region overseeing 20% of global oil shipments. Authorities confirmed explosions near Iran’s Sirik port and Qeshm Island, attributed to defensive measures against unauthorized drone incursions. Both nations emphasized that these incidents highlighted the urgency of formalized truces.
The proposed memorandum outlines immediate measures, including the U.S. lifting sanctions on Iranian oil exports and releasing billions in frozen assets while Iran secures open maritime passage through the strait. Separate, extended talks on Iran’s nuclear program—cited by former President Trump as the war’s impetus—will address uranium stockpile management, with potential voluntary dilution or destruction. Iran insists any dismantling must reflect its national interests, per Araqchi’s public remarks.
A Western source disclosed that despite superficial differences, the agreement largely accommodates Iran’s positions, granting Tehran extensive concessions. This has sparked internal criticism, notably from Trump, who criticized “unbalanced” reporting on concessions. The pact excludes punitive measures for past actions, focusing instead on performance-based terms, such as barring Iran’s support for militant groups.
Israeli Prime Minister Benjamin Netanyahu separately stated his government would not join the agreement, reaffirming the nation’s independent military operations. U.S. officials emphasized that Berlin remains a practical signing location, though discussions continue on hosting countries. Remote signature processes are anticipated to accelerate diplomatic timelines.
Market reactions underscored global relief as oil prices plummeted 3% on Brent Crude, reflecting reduced short-term geopolitical instability. Political analysts warn, however, that the accord’s success hinges on addressing lingering U.S. demands, including missile program restrictions, which remain unresolved. The deal’s human rights and decoupling policy measures remain integral components, though enforcement mechanisms are yet undefined.
The conflict’s economic toll remains significant, with analysts projecting prolonged recovery efforts for affected Middle Eastern trade corridors. U.S. officials highlighted the necessity of linking Iran’s compliance to tangible economic incentives, while Baghdad-based negotiators signaled readiness to formalize naval blockade lifts by late summer.