Draft Memorandum Moves Preliminary U.S.-Iran Agreement Closer
New draft brings preliminary U.S.-Iran agreement closer, proposing a short ceasefire, Hormuz reopening, investment fund and phased sanctions relief during talks
The latest diplomatic contacts have produced a new draft memorandum that mediators say brings a preliminary U.S.-Iran agreement closer to reality. The proposed framework would pause major hostilities, reopen navigation in the Strait of Hormuz and establish terms for phased financial and political steps while longer negotiations continue. Officials involved in the talks caution the text is still provisional and requires presidential sign-off and further clarification of key provisions.
Draft would create an initial pause in hostilities
The memorandum under discussion is intended as an initial framework to halt active fighting while negotiators work on a comprehensive settlement. Diplomats briefed on the proposal said one version calls for a 60-day cessation of hostilities with the possibility of extension if progress is made. Iranian officials described a more expansive formulation that would treat the period as a declaration of the end of war on multiple fronts for the duration of talks.
Regional components include Lebanon and front-line clauses
Mediators have included regional elements that address conflicts beyond direct U.S.-Iran clashes, notably provisions aimed at reducing violence in Lebanon. Despite a nominal cease-fire there, both sides and affiliated groups have reported violations, and Israeli operations against Hezbollah have intensified tensions. The memorandum’s regional clauses are meant to limit spillover while more complex political arrangements are negotiated.
Strait of Hormuz reopening remains a central sticking point
One of the most contested items is maritime access through the Strait of Hormuz, a conduit for significant global oil and gas flows before hostilities disrupted traffic. Under one U.S. interpretation, the strait would be reopened promptly while aspects of a U.S. naval blockade would be scaled back in stages tied to Iran restoring prewar levels of commercial transit. Iranian negotiators, by contrast, seek a guaranteed reopening with the option for Iran and neighboring Oman to discuss fees or services for future transits.
Provision calls for international investment fund and reconstruction aid
A prominent new element in the draft is a proposed international investment fund to support postwar reconstruction and economic engagement with Iran. Officials and diplomats involved in mediation put a tentative figure on the package in recent discussions, although those numbers remain unconfirmed and subject to negotiation. The proposal envisions facilitating foreign investment, including entry by major energy companies, contingent on a final agreement and phased easing of sanctions.
Nuclear issues deferred to a second negotiation phase
The memorandum appears to postpone detailed resolution of Iran’s nuclear material to a subsequent phase of talks, committing both sides to address enriched uranium and stockpiles later. Negotiators would then tackle how to manage nearly a metric ton of material enriched to various levels, with options including dilution, monitored blending, or transfer to a third state. U.S. officials have signaled some flexibility on disposition options, but disagreements persist over where material should be moved and which international actors could receive it.
Frozen assets and phased sanctions relief form a difficult compromise
Financial arrangements are a central bargaining point, with Iran seeking access to billions in frozen assets as a condition for meaningful progress. The draft outlines a phased release of funds over the negotiation period, while also aiming to avoid direct U.S. cash payments that would raise domestic political concerns for the American administration. Mediators have explored third-party mechanisms and contributions from regional partners to enable access to assets without placing sole responsibility on the United States.
All parties involved warn that the agreement remains provisional and that key details vary across competing drafts circulated by mediators. Short exchanges of fire in recent days have increased the urgency but also the fragility of the effort, underscoring how setbacks could derail momentum. Presidential approval has not been granted, and negotiators say further text harmonization and clarification of enforcement and verification mechanisms are needed before either side will commit.
If implemented, the memorandum would serve as a staging ground for prolonged, technically complex negotiations over nuclear safeguards, sanctions relief and regional security arrangements. Diplomats note that the longer the process extends without a clear, enforceable timeline, the greater the chance of renewed hostilities or unilateral measures that would complicate diplomacy. For now, the draft offers a pathway to reduce immediate violence but leaves the most contentious decisions for later rounds of bargaining.