Countries across the Middle East, particularly Gulf states, are adopting a cautious stance as they await the potential finalization of a U.S.-Iran agreement anticipated this week. For several months, expectations of a breakthrough have been met with repeated delays, leaving regional actors uncertain about the outcome.

Recent diplomatic activity underscores the heightened attention to the negotiations. On Saturday, Saudi Foreign Minister Prince Faisal bin Farhan Al-Saud held a phone conversation with his Pakistani counterpart, Muhammad Ishaq Dar, during which they exchanged views on the evolving regional dynamics and ongoing efforts related to the prospective deal. Both Pakistan and Saudi Arabia, close allies with significant regional influence, have played pivotal roles in managing tensions that escalated following U.S. and Israeli strikes on Iranian territory on February 28.

Pakistan, in particular, has been instrumental as a mediator, leveraging its relationships on both sides. Prime Minister Shehbaz Sharif of Pakistan recently expressed optimism, indicating that a peace deal to resolve hostilities between the United States and Iran was likely to be formalized within 24 hours.

However, logistical details surrounding the signing remain fluid. Reports from the United Arab Emirates have indicated that the agreement is expected to be signed electronically rather than in person. The decision aims to expedite the process and avoid last-minute impediments. U.S. officials cited security protocols and scheduling challenges, noting that President Donald Trump and Vice President JD Vance do not travel internationally simultaneously—a factor that complicates coordinating a physical signing event, particularly with Trump’s planned departure for the G7 summit in France.

While the Pakistani Foreign Ministry confirmed via social media that an electronic signing ceremony was slated for Sunday, Iranian Foreign Ministry spokesman Esmail Baghaei advised caution, telling state media that the exact date had yet to be determined and ruled out the possibility of the ceremony occurring immediately.

The agreement, often described as a memorandum of understanding, is expected to lay the groundwork for further negotiations addressing contentious issues such as Iran’s nuclear program and its stockpile of highly enriched uranium.

Beyond the direct U.S.-Iran context, the region is also closely monitoring implications for Lebanon, where there have been discussions about reducing Hezbollah’s influence. This could potentially lead Israel to reconsider its military posture near the Lebanese border and the establishment of a new security buffer. Iran is believed to be seeking to connect any deal with broader efforts involving Hezbollah and Lebanon, adding complexity to the regional security environment.

Similarly, the status of Iranian-backed militias in Iraq remains uncertain, with no clear indication yet on how the potential agreement might influence their activities.

With multiple intertwined issues pending, regional stakeholders continue to adopt a “wait and see” approach, watching closely to determine whether the anticipated U.S.-Iran deal will usher in a period of de-escalation or reinforce existing divisions across the Middle East.