WASHINGTON, June 12 (STL.News) – The United States and Iran Said on Friday that an agreement to end their war is close, with a senior U.S. administration official confirming that both sides have agreed on a text.
Washington expects to sign an initial deal in the coming days, marking a potential shift in the months-long conflict.
Iranian Foreign Minister Abbas Araqchi noted that while changes were still possible, the tentative agreement demonstrated that his country emerged stronger from the conflict. Araqchi voiced a defiant tone regarding the conclusion of hostilities during an appearance on state television.
“Iran is the winner of the war with the U.S.,” Araqchi said.
Terms of the Proposed Agreement
The proposed memorandum of understanding focuses on reopening the Strait of Hormuz and lifting the U.S. naval blockade on Iranian ports. Sources involved in the talks indicated that negotiations regarding Iran’s nuclear program would occur after the initial deal is finalized. The U.S. official, speaking on condition of anonymity, stated that the agreement met the core objectives set by President Donald Trump and put the ongoing negotiations in a favorable position.
Draft proposals described by Western, Pakistani, and Iranian sources suggest the terms could favor Iran, though President Trump dismissed these reports as inaccurate. Proposals indicate that the U.S. would begin releasing billions of dollars in frozen Iranian assets and waive sanctions on oil exports in exchange for the reopening of the vital waterway.
Managing the Nuclear Program
Addressing the nuclear program remains a primary component of the post-agreement framework. The U.S. official stated that the agreement aims for the eventual dismantling of the program, including the removal and destruction of highly enriched uranium stockpiles. A long-term inspection regime is also included to ensure compliance.
However, conflicting accounts persist regarding the future of the uranium stockpile. Araqchi suggested that Tehran prefers to retain the material in a diluted form rather than accepting the total dismantling of its nuclear capabilities. Additionally, the proposals include discussions on possible war reparations for Tehran and the status of Iran’s missile program, although the U.S. official disputed that these specific concessions were part of the agreement.
Implications for the Region
Israel, which launched the war alongside the United States, has not been part of the negotiations. Prime Minister Benjamin Netanyahu confirmed that his country would not be a party to the agreement. Tensions have recently escalated between Washington and Tel Aviv over U.S. demands that Israel curb military operations in Lebanon to facilitate these peace talks.
Araqchi suggested the agreement would end the war in Lebanon, implying an Israeli withdrawal from occupied areas. However, Israel’s defense minister stated that no such withdrawal would occur, and a senior Israeli official affirmed that Israel intends to retain the freedom to act against threats in areas currently under its control.
Economic Impact of the Developments
Progress toward an agreement surfaced at the end of a week characterized by a sharp escalation in hostilities, including exchanges of fire between Israeli and Iranian forces and U.S. strikes on Iranian targets. Global markets responded to the news, as Brent crude prices fell more than 3 percent to their lowest levels in nearly two months.
The conflict has created political pressure for the White House, with rising fuel prices contributing to shifting public sentiment. As the November midterm elections approach, some Republican lawmakers have expressed concern regarding the political impact of the war, though internal debate remains regarding the specific terms of an agreement that some perceive as too favorable to Iran.
