Pakistan has declared that a US-Iran peace deal is “expected in the next 24 hours”, as uncertainty continues over the prospect of an immediate end to the conflict.
Donald Trump said that a memorandum of understanding could be signed as soon as Sunday in Europe, while Iranian foreign minister Abbas Araghchi said the deal “has never been closer”.
However, US and Iranian officials have given conflicting accounts of the agreed terms as Shehbaz Sharif, the prime minister of Pakistan, warned against a “misinformation campaign” designed to “sabotage” reconciliation.
Trump has since expressed frustration over slow progress, describing the Iranians as “very dishonourable people to deal with” and calling on them to “get their act together, and FAST!”
Here are the major points of tension that still need to be straightened out before a deal can be reached.
The Strait of Hormuz question
A key sticking point in ongoing negotiations is the status of the Strait of Hormuz, which has been effectively closed by Iran since shortly after the conflict began in February.
A senior official in the White House Administration said on Friday that under the terms of the memorandum, the crucial waterway would be reopened and the US would lift its blockade on Iranian ports.
Vessels anchored in the Strait of Hormuz as seen from Musandam, Oman (Photo: Stringer/Reuters)Araghchi insisted that sovereignty over the Strait belongs to Iran and Oman and that Iran would continue to ensure safe passage for ships, adding “our sword will always hang over the Strait of Hormuz”.
He said: “Iran has made a firm decision that the administration of the Strait of Hormuz will no longer be the same as before.”
Responsible for a fifth of world oil flows, the Strait has become a key chokehold for Iran, with several ships attacked as they attempt to cross through.
While Iran has lost its own revenue due to disrupted oil supplies, the closure of the Strait has led to rising energy prices across the world, which are set to worsen in the winter.
Nuclear negotiations
In a draft of the memorandum briefed to Reuters, no final decision has been made on Iran’s nuclear policy, which remains a central point of tension.
The draft pushed back discussions to a 60-day period of talks with no mention of Tehran agreeing to give up its stockpiles of highly enriched uranium.
A senior Trump administration official has insisted that Tehran is committing to dismantling its nuclear weapons programme and decommissioning nuclear sites, including destroying and removing the enriched material.
They added that it was not yet clear how this would be done.
Despite a barrage of attacks, it also remains unclear as to the extent of the damage done to Iran’s nuclear programme and missile stockpiles.
US financial concessions
In return for Tehran’s compliance, the deal may also include hundreds of billions of US dollars paid in potential war reparations to Tehran and the unfreezing of Iranian assets held abroad.
A senior US official has insisted that this is dependent on Iran’s compliance. They said: “None of their money released until they perform. Strait of Hormuz will be open. No Iran funding of terrorist groups”.
They emphasised that it is an entirely “performance-based deal”.
Scott Lucas, political analyst and professor of international politics at University College Dublin, told The i Paper this means there is a risk of a “standoff”.
He said: “The Iranians are expecting up to $24bn (£18bn) of assets to be unfrozen. Now, there are signs that there are preparations for that, but what is the timing here?
“The Iranians are saying that as soon as we make the commitment to open the Strait of Hormuz under this new system, then the sanctions are eased, and we get these billions of dollars. The Americans are saying no, no, no, we have to have guarantees that the Strait of Hormuz is fully open and then you’ll start to receive it. So there’s a timing question.”
Israel and Hezbollah strikes continue
Araghchi maintained on Friday that any deal would end the conflict in Lebanon between Israel and Hezbollah.
Israel would withdraw from occupied areas, he said, in direct contradiction to statements from Israel’s defence minister.
The ongoing conflict in Lebanon may pose a crucial obstacle to the deal, as strikes continue between the two forces.
In recent weeks, Trump clashed with Israeli Prime Minister Benjamin Netanyahu over US demands that Israel halt its military action in Lebanon to assist Washington’s negotiations.
Is their trust between both sides?
Despite having agreed a ceasefire in April, the US and Iran have continued to exchange tit-for-tat strikes and this is now the 39th time that Trump has declared talks to be on the verge of success.
Even if the memorandum is signed in the coming days, the exact terms of a final agreement must still be ironed out in a period of talks.
The agreement will also need confirmation from the Israeli side, with Iran demanding an end to the attacks in Lebanon before any agreement is reached.
It also remains to be seen if the deal can be truly enforced. Both sides have shown an ability to launch surprise attacks so any future deal could become incredibly tentative going forward.
“With them, there is no such thing as dealing in good faith,” Trump said in a post on Truth Social.
Trump has also publicly rejected some of Iran’s demands despite a report in The Daily Telegraph claiming he wants a deal ahead of the G7 summit on Monday.
“We’re still in limbo,” Lucas said. “Trump was close to signing it three weeks ago, and he backed out at that point because he was being criticised for giving up too much to Iran. Here we are, almost three weeks later, and this is based on an Iranian proposal.”
Lucas emphasised that despite Trump’s “face-saving wording,” it is the Iranians who have come out on top.
“The Trump folks wanted regime surrender,” he said. “Not only has the regime not surrendered, but they actually are in a better position now. They’ve been hit hard economically, but politically, they’re in a better position now than they were before the war started.”
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