The U.S. and Iran may sign a peace deal as early as Sunday, according to Iranian state media. The draft agreement reportedly includes a U.S. commitment to lift oil sanctions and an Iranian commitment to reopen the Strait of Hormuz within 30 days. The 14-point document stipulates that final negotiations will commence only after the release of half of Iran's frozen funds, the suspension of oil sanctions, and the lifting of the naval blockade, as reported by the Mehr News Agency.
The agreement would require the withdrawal of all American forces from Iran and the presentation of reconstruction plans worth at least $300 billion by the U.S. and its allies. Bloomberg reported that the potential signing could take place in Switzerland, coinciding with the G7 summit from June 15 to June 17 in Evian, France.
Iran's official news agency IRNA stated that the timing and location of the meeting are speculative, and an official announcement will follow once a conclusion is reached. CNBC has sought comment from the White House.
President Donald Trump mentioned on Thursday that the U.S. had reached a significant settlement with Iran, pending the finalization of documents. He indicated that the Strait of Hormuz would be reopened once the deal is signed.
Israeli Prime Minister Benjamin Netanyahu confirmed a conversation with Trump regarding the memorandum of understanding with Iran. Although Israel is not part of the negotiations, Netanyahu expressed appreciation for Trump's commitment to include restrictions on Iran's nuclear capabilities in the final agreement.
The Strait of Hormuz is a critical route for global oil trade, with approximately 25% of the world's seaborne oil and 20% of global LNG passing through it. Following the news of a potential peace deal, global stocks rose, with European shares increasing by 1.8% and major bourses adding around 2%. Oil prices also fell, with U.S. crude oil futures for July delivery dropping by 1.61% and Brent futures losing 1.75%.