The United States and Iran have signaled that an initial framework for a peace deal to end the conflict between the two countries is nearing completion, with discussions underway about a potential signing in the coming days. Pakistani Prime Minister Shehbaz Sharif, whose country has been mediating the negotiations, indicated on Saturday that the deal could be finalized within 24 hours, with plans for an electronic signing followed by technical-level talks. However, Iranian Foreign Ministry spokesperson Esmaeil Baghaei urged caution regarding the timeline, stating that the agreement would not be signed the next day but might still happen soon.

The conflict, which began on February 28 with a series of strikes by U.S. and Israeli forces against Iran, escalated rapidly, drawing in Iranian attacks on U.S. military targets and retaliatory actions involving Hezbollah militants and Israeli forces in Lebanon. The war has resulted in thousands of casualties, primarily in Iran and Lebanon, and severely disrupted global energy markets, with Iran imposing a blockade on the Strait of Hormuz—a vital shipping route for global oil supplies—and the U.S. enforcing a naval blockade on Iranian ports.

According to sources involved in the negotiations, the proposed memorandum of understanding would focus on reopening the Strait of Hormuz and lifting the U.S. naval blockade on Iranian ports. In return, Iran would resume allowing commercial traffic through the strait. Negotiations on Iran’s nuclear program, which was a key factor in the outbreak of the conflict, are expected to take place during a subsequent 60-day period. A senior U.S. official described the emerging deal as aligning with President Donald Trump’s key objectives, including the eventual dismantling of Iran’s nuclear program and the removal of its highly enriched uranium stockpile, though Iran’s Foreign Minister Abbas Araqchi indicated that Tehran prefers to retain diluted uranium within the country.

Tensions remain high, as evidenced by recent military flare-ups in the Strait of Hormuz. U.S. forces downed multiple Iranian attack drones heading toward the waterway, which were described as posing threats to commercial shipping. Iranian authorities, meanwhile, have continued to enforce control over the strait, requiring vessels to obtain permission before passage and reportedly firing warning shots to deter unauthorized crossings.

The exact terms of the deal remain contested. Iranian officials claim significant gains, with Araqchi stating on state television that Iran has emerged as the “winner of the war.” Some sources suggest that Tehran’s missile program and uranium enrichment rights would be preserved, which conflicts with U.S. and Israeli demands. U.S. officials have denied claims that the agreement would allow Iran to maintain its nuclear capabilities in their current form. Israeli Prime Minister Benjamin Netanyahu has stated that Israel will not be party to the agreement and has pledged to maintain Israel’s freedom to act against perceived threats, including in Lebanon, where Iran-aligned groups are active.

Reactions within Iran reflect a mixture of skepticism and cautious optimism. Some citizens expressed doubt about the durability of any forthcoming agreement, fearing it might not benefit the Iranian populace regardless of the outcome. Iranian media also reflected divergent perspectives, with reformist outlets viewing progress as a way to alleviate longstanding geopolitical and economic challenges, while conservative voices emphasized that Iran’s strategic control of the Strait of Hormuz remains a crucial bargaining asset that should not be compromised.

As the situation evolves, officials on all sides appear focused on finalizing a deal that could halt the conflict and reopen vital trade routes, though significant differences persist over the deal’s details and implications for regional security.