Iran Peace Memorandum Set for Sunday Signing in Geneva, Source Confirms
A memorandum aimed at halting the ongoing conflict in the Gulf between the United States and Iran is expected to be signed as early as Sunday, with Geneva emerging as the likely venue, according to a Western source. The finalization of the language in the memorandum is still underway, and Iran is maintaining its position that the agreement must also address the fighting in Lebanon, where Israel has been engaged with the Iran-backed Hezbollah militia.
The objective is to finalize the wording by Saturday, allowing U.S. Vice President JD Vance and Iran’s Parliament Speaker Mohammed Baqer Qalibaf to sign the agreement. While no official venue has been confirmed, Geneva is being considered as the most probable location.
On Thursday, President Trump stated that he was calling off planned strikes on Iran, indicating that the deal was nearing completion. He remarked, “We just made a great settlement of the war with Iran,” during a press briefing at the White House.
Terms of the Agreement
The terms of the proposed deal, as outlined by Iranian officials, appear to meet many of Tehran’s demands. In contrast, Trump seems to gain limited concessions, primarily the reopening of the Strait of Hormuz, which Iran had closed following U.S. attacks in February.
A senior Iranian source disclosed that the draft agreement would include the waiving of sanctions on Iranian oil, the unfreezing of billions of dollars in Iranian assets, and a requirement for a cessation of hostilities across all fronts, including Lebanon. Nuclear issues are expected to be deferred for future discussions, with Washington seeking assurances that Iran will not develop nuclear weapons, a claim Iran has consistently denied.
The Iranian demands include the lifting of sanctions, the unfreezing of assets, and a halt to Israeli military actions in Lebanon. However, the source did not specify what Iran might offer in return, and there has been no immediate response from the U.S. side.
Iran’s Mehr news agency reported that the terms also encompass additional key concessions from the U.S., including a commitment to withdraw U.S. forces from the region and to present a plan for the reconstruction of Iran’s economy, estimated to cost at least $300 billion.
Market Reactions and Political Implications
Trump’s announcement of a potential deal, which came shortly after he threatened further military action against Iran, led to a rally in global stock markets and a decline in oil prices. Brent crude prices fell by more than 2% during European morning trading.
The conflict, which escalated following U.S. and Israeli strikes on Iran that began on February 28, has seen Trump make similar declarations about impending agreements, only for no formal resolution to materialize. Nevertheless, markets reacted positively to the latest developments, interpreting them as a sign of de-escalation following a series of exchanges of fire between Iran and Israel, and U.S. military strikes on Iranian positions.
Trump indicated that the Strait of Hormuz would reopen “as soon as we sign,” suggesting that the signing could occur over the weekend in Europe. He also stated that he understood Iran’s Supreme Leader Ayatollah Mojtaba Khamenei had approved the deal.
Rising Tensions and Military Engagements
Amid these diplomatic efforts, tensions remain high in the Strait of Hormuz. U.S. forces recently shot down two Iranian one-way attack drones after Tehran attempted to target commercial vessels in the strategic waterway. Iranian state media reported that the military had stopped a tanker from transiting the strait, with reports of explosions in the area.
The ongoing conflict presents a significant political challenge for the White House, especially as polls indicate declining approval ratings for Trump, driven by public discontent over rising gasoline prices. Some Republican lawmakers have expressed concerns that the unpopularity of the war could jeopardize their control in the upcoming midterm elections.
The proposed cessation of hostilities in Lebanon may pose challenges for Israel, which initiated the conflict alongside the U.S. in February but has not been part of the peace negotiations. Prime Minister Benjamin Netanyahu’s office has stated that Israel is not a party to any memorandum of understanding with Iran.
Source: www.emirates247.com
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Published on 2026-06-12 14:54:00 • By the Editorial Desk
