Iran says it is in the final stage of drafting a framework agreement with the United States, marking the most significant diplomatic progress between the two adversaries since regional conflict erupted in February 2026.
The deal, a 14-point memorandum of understanding, reportedly covers a cessation of hostilities, a temporary halt to Iranian uranium enrichment, US sanctions relief, and guarantees for freedom of navigation through the Strait of Hormuz.
Permanent limits on Iran’s nuclear program and verification mechanisms will be deferred to follow-on negotiations, set to begin within 30 days.
The framework could be announced as the “Islamabad Declaration,” highlighting Pakistan’s central mediating role. Army Chief Asim Munir has served as key intermediary.
Steve Witkoff and Jared Kushner have engaged directly with Iranian counterparts under the Trump administration’s directive. Iran’s Foreign Minister Seyed Abbas Araghchi leads Tehran’s side.
Saudi Arabia and the UAE have been drawn into the talks, reflecting the conflict’s regional destabilization.
The Strait of Hormuz handles about a fifth of global oil consumption. An agreement restoring navigation and lifting sanctions on Iranian oil could inject significant new supply into markets.
Sanctions relief may affect compliance frameworks for financial systems, including crypto exchanges and stablecoin issuers. Unresolved nuclear verification questions remain a potential obstacle.