US, Iran near historic memo to end gulf war

A memorandum between the United States and Iran aimed at ending the war in the Gulf could be signed at the likely venue in Geneva on Sunday, according to Reuters.

The war, which began on February 28 with coordinated US and Israeli strikes on Iran, has left significant casualties and widespread damage across the region.

Iranian and US officials have been negotiating terms to halt hostilities, with Iran insisting that the agreement also address the ongoing conflict in Lebanon, where Israel has been fighting the Iran-backed Hezbollah militia.

The source said the wording of the memorandum is still being finalised, with plans to complete it by Saturday.

The agreement is expected to be signed by US Vice President JD Vance and Iran’s Parliament Speaker Mohammed Baqer Qalibaf. President Trump announced on Thursday that he was halting new strikes on Iran, signaling that a deal was imminent.

“We just made a great settlement of the war with Iran,” he told reporters at the White House.

According to Iranian officials, the draft deal would meet many of Tehran’s demands, including a waiver on oil sanctions, the unfreezing of billions of dollars in Iranian funds, and a cessation of hostilities across all fronts, including Lebanon. Nuclear issues would be deferred to later negotiations.

“The United States and its allies must submit plans for Iran’s reconstruction worth at least $300 billion,” Iran’s Mehr news agency reported, citing the memorandum’s terms.

While Trump’s announcement triggered a rally in global markets and a drop in oil prices – Brent crude fell more than 2 per cent in early European trade – analysts cautioned that the US may have gained little beyond the reopening of the strategically vital Strait of Hormuz, which Iran had closed following February’s US-ordered attacks.

However, tensions remain high in the region as US forces shot down two Iranian attack drones on Thursday after Tehran attempted to strike commercial vessels in the strait.

Trump said, “The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe.”

Iranian state media also reported explosions as its military stopped a tanker from transiting the waterway.

The conflict has weighed heavily on the White House, with approval ratings falling amid public anger over rising gasoline prices.

Republicans have expressed concern that the war’s unpopularity could affect their control of Congress in the upcoming midterm elections.

Israel, a key participant in the initial stages of the war, has not been included in the peace negotiations.

Prime Minister Benjamin Netanyahu’s office emphasised that Israel is not a party to any memorandum of understanding with Iran.

Despite these complications, both Washington and Tehran appear eager to finalize the historic agreement, which could mark a rare ceasefire and step toward stabilizing the Gulf region after months of intense conflict.