US-Iran Peace Deal Hopes Rise After Positive Signals From Iran and Pakistan

Hopes for a confirmed peace agreement between the United States and Iran strengthened on Friday after encouraging comments from Tehran and Pakistan helped calm earlier doubts.

The renewed optimism came after Iranian Foreign Minister Seyed Abbas Araghchi said a memorandum of understanding with Washington had “never been closer.”

Iran Says Agreement Is Nearing Finalization

Araghchi said the proposed agreement was still being finalized and urged the media to avoid speculation about its exact terms.

He added that Iran would share the details publicly once the process is complete, describing Tehran’s approach as responsible and transparent.

His comments helped restore confidence that diplomatic progress between Washington and Tehran remains intact, despite earlier uncertainty.

Pakistan Confirms Progress on Peace Deal

Pakistan, which has acted as a key mediator between the United States and Iran, also issued a positive update.

Prime Minister Shehbaz Sharif said peace had “never been this close” and confirmed that a final agreed text for the peace deal had been reached.

According to Sharif, Pakistan is now working closely with both sides to finalize the next steps. His comments added further support to expectations that a formal agreement could soon be signed.

Trump Rejects Reports on Deal Terms

Earlier, President Donald Trump criticized Iran after reports from Mehr News Agency suggested that the proposed memorandum could include the release of frozen Iranian funds.

The report also claimed that final negotiations would focus on nuclear and economic issues, while leaving Iran’s missile program outside the agreement.

Trump strongly rejected those claims, saying the leaked terms did not match the written agreement. He accused Iran of spreading inaccurate information and warned Tehran to move quickly toward finalizing the deal.

Signing Ceremony Could Take Place in Europe

According to Reuters, Washington and Tehran could sign a memorandum of understanding as soon as Sunday.

The report said Vice President JD Vance and Iranian Parliament Speaker Mohammed Baqer Qalibaf may travel to Geneva for a possible signing ceremony.

However, the final language of the document still needs to be completed. Iran is reportedly demanding that any agreement also include an end to fighting between Israel and Hezbollah in Lebanon.

Reuters reported that negotiators are aiming to finalize the wording of the memorandum by Saturday.

UAE Funds and Oil Sanctions Reportedly Part of Talks

Separate reports said the United Arab Emirates had agreed to release between $10 billion and $20 billion for Iran in exchange for a halt to Iranian attacks on the UAE.

Other media reports suggested that the proposed US-Iran peace deal could include two major commitments.

Iran would agree to reopen the Strait of Hormuz, while Washington would lift oil sanctions within 30 days.

The Strait of Hormuz is one of the world’s most important energy routes, carrying a large share of global oil and gas shipments.

Oil Prices Fall as Peace Hopes Grow

Oil prices declined sharply as markets reacted to the possibility of a diplomatic breakthrough.

Brent crude futures for August delivery fell more than 3%, trading near $87 per barrel and staying close to session lows.

The move followed a drop below $90 per barrel in the previous session after Trump suggested that an agreement to end the war with Iran could be close.

Lower oil prices reflected expectations that the Strait of Hormuz could reopen and that energy supply risks may ease if a deal is finalized.

Trump Says War With Iran Could End Soon

On Thursday, Trump said the United States and Iran had reached an agreement that still required final documents to be completed.

He said a signing ceremony could take place in Europe within days.

Trump also claimed that the deal would reopen the Strait of Hormuz, end the American naval blockade of Iran’s ports, and prevent Iran from obtaining a nuclear weapon.

Later, he told supporters during a virtual rally that the war with Iran had effectively ended.

The announcement came after Trump called off planned strikes against Iran, saying discussions and final points of a peace agreement had been approved by all parties involved.

Markets Watch Final Deal Details

Although optimism has improved, investors remain focused on whether the agreement will be officially signed and what the final terms will include.

A confirmed US-Iran peace deal could have major implications for oil prices, inflation expectations, global markets, and geopolitical stability across the Middle East.