Senior officials suggest that the United States and Iran could reach a deal to restore access to the Strait of Hormuz during the upcoming G7 leaders' meeting next week.
An experienced Iranian representative suggested late at night that an agreement seems probable, according to a G7 source and another envoy from a non-member country, both of whom requested anonymity while talking about confidential issues.
The G7 summit this year will be held in Evian, located in the French Alps, between June 15 and June 17. Geneva, situated in Switzerland, is close by and has been suggested as a possible venue for the signing ceremony starting as early as Sunday, according to those aware of the arrangements.
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The Group of Seven includes Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. The European Union is also present within the G7 framework.
U.S. President Donald Trump stated that his vice president, J.D. Vance, along with Steve Witkoff, a special representative, would act on his behalf during any ceremony.
An temporary agreement between the U.S. and Iran would involve prolonging their current truce for approximately two more months, followed by additional discussions regarding the country's atomic energy initiatives. In addition, Iran would resume operations through the waterway, and the U.S. would remove its restrictions on Iranian maritime access.
This progress could significantly help put an end to a conflict that has created widespread disorder throughout the Middle East since late February, resulting in numerous deaths and driving up energy costs. The ongoing violence has also contributed to rising global inflation, which poses challenges for Trump as he prepares for the U.S. midterm elections in November.
However, on Friday, Trump stated that Tehran's account of the suggested agreement "has nothing to do with reality," describing the Iranians as "very dishonest individuals to negotiate with."
The conditions outlined in the so-called Memorandum of Understanding still require approval from Iran's Supreme Leader Mojtaba Khamenei, as stated by a European source who is aware of the situation. He has remained concealed since the confrontation began following U.S.-Israeli attacks on Iran, and the primary intermediaries—Qatar and Pakistan—have discovered that reaching out to him may take several days.
A spokesperson from Iran's Ministry of Foreign Affairs stated on Friday, "We have not yet come to a decision" regarding any agreement with the United States. However, they indicated that some advancement has occurred in recent days.
According to the IRNA state-owned news outlet, a representative from the foreign ministry stated that a document is "almost completed and waiting for the ultimate approval of Iran's governing authorities," as mentioned independently.
In Tehran, certain everyday Iranians were concerned that an agreement with the United States might strengthen the government's control.
"I'm uncertain about my feelings," said a 29-year-old employee at a café in the Iranian capital, requesting anonymity due to concerns over potential consequences.
I'm unsure whether this will turn out positively or negatively for us. The primary objective of this conflict was for the U.S. to dismantle the regime, and that hasn't occurred. Therefore, what exactly does an agreement achieve?
Crude oil prices dropped and stock markets surged towards the end of Thursday after Trump announced he had called off planned airstrikes against Iran and stated that a deal was nearly finalized.
Oil prices fell again on Friday, as Brent crude declined by 3.2 percent to under $88 per barrel. Although the global standard remains nearly 45 percent higher this year, it has decreased from a peak of $125 in mid-April, partly due to expectations of an agreement rather than a return to full-scale conflict.
Trump stated that merchant ships would be allowed unrestricted movement through the strait, which typically transports one-fifth of global oil and liquefied natural gas shipments. IRNA reported that Iran will demand control over vessel movements within the strait.
A diplomatic source involved in the discussions mentioned that the United States and its partners intend to restore normal shipment volumes via the waterway approximately one month after an agreement is finalized. This could face challenges due to the strong probability of Iran laying mines in the strait, a task that the UK and France are getting ready to assist with clearing.
Approximately 140 vessels navigated the tight passage daily prior to the outbreak of hostilities. Iran subsequently nearly shut it down by attacking ships using drones and missiles. Although the count of vessels has slightly increased in recent weeks, it remains significantly lower than previous levels.
The Memorandum of Understanding's content remains undisclosed for now. According to Mehr, an Iranian media outlet, it is expected to involve releasing $24 billion in Iranian assets stored in overseas banks. Trump had earlier opposed the notion of thawing out Teheran's financial holdings.
Mehr further stated that the agreement specifies the United States will remove troops from regions close to Iran, ease oil-related penalties, and "submit rebuilding proposals" for the Islamic Republic amounting to approximately $300 billion.
The Iranian administration claimed it experienced approximately this amount of destruction throughout the conflict due to heavy U.S. and Israeli bombing, which also resulted in the deaths of numerous officials.
A possible area of contention is Israel, which is excluded from discussions regarding the temporary agreement. This predominantly Jewish nation has opposed any memorandum of understanding containing a truce in Lebanon, where it engages with Iranian-supported Hezbollah fighters.
Israel remains cautious about any agreement with Iran, and Prime Minister Benjamin Netanyahu has indicated his preference for additional attacks aimed at weakening the nation's armed forces.
Last week, Trump used harsh language towards Netanyahu during a phone conversation where he asked the Israeli leader to reduce military actions in Lebanon.
On Sunday and Monday, Iran and Israel exchanged missile attacks, prompting Trump to urge both sides to cease their military actions.
The growing tensions between the United States and Iran this week have brought their truce agreed upon on April 8 to the verge of breaking down.
The United States accused Iran of shooting down an Apache attack helicopter and took action by attacking Iranian military locations during the evening on Tuesday. In response, Iran targeted American troops and facilities in Jordan, Kuwait, and Bahrain. Additional clashes occurred on Wednesday.
Trump later stated he intended to strike Iran "VERY HARD" on Thursday evening, but subsequently altered his plan and declared that an agreement was nearing completion.
This occurred following Iran's private warning to terminate talks and increase its assaults in reaction to additional U.S. airstrikes, according to one diplomat.
Further reportage from Agence France-Presse
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