FROM PAGE 12

due to the hesitation of the other side, we must be cautious in making any comments about this process.”

A US official who spoke to reporters later declined to be drawn on the timing but said: “It’s a great deal and a very strong deal.”

It is not the first time the two sides have appeared close to an initial agreement on ending the war that began on February 28 with joint US-Israeli strikes on Iran.

The war has sent global energy prices sharply higher and killed thousands of people, mostly in Iran and Lebanon, where the war has revived a conflict between Israel and Iran-aligned Hezbollah militants.

WHAT IS IN THE DEAL?

Iranian Foreign Minister Abbas Araqchi said on Friday that while changes in the deal were still possible, the tentative agreement showed his country had emerged stronger from the conflict.

“Iran is the winner of the war with the US,” he said on state television.

Hours after those remarks, US forces shot down multiple Iranian one-way attack drones heading toward the Strait of Hormuz, a source familiar with the matter told Reuters. The source, who spoke on condition of anonymity, said the drones had posed a threat to commercial traffic.

Iran has for months effectively blockaded the strait, and the US navy has blocked Iranian ports to reduce its oil exports.

The proposed memorandum of understanding calls for reopening the strait and lifting the US naval blockade, sources on all sides of the talks said. Negotiations over Iran’s nuclear programme -- Trump’s stated rationale for starting the war -- would take place afterwards.

“Iran is going to open up the Strait of Hormuz, that’s a requirement. It could be open with no tolls. As they do that, we will lift our blockade,” said the US official who spoke yesterday.

“It’s going to happen in conjunction, and part of the next step, the phase after that, is going to be the demining of the straits,” the official said, indicating countries in the Group of Seven major powers could have a role in this.

FROZEN ASSETS

Draft terms described to Reuters by multiple sources indicate the US would begin releasing billions of dollars in frozen Iranian assets and waive sanctions on its oil exports, in return for Iran opening the strait.

Iran’s Fars news agency quoted Baghaei as saying the release of Iran’s frozen assets was an integral part of the agreement and also that Iran would have to charge for services in the Strait of Hormuz.

Fars also quoted him as saying foreign military bases in the region must end without providing details.

Iran’s nuclear programme would be addressed during a 60-day period of talks. A US official said the agreement would ultimately lead to the dismantling of Iran’s nuclear programme, with its stockpile of highly enriched uranium to be destroyed and removed.

But Araghchi said that Iran, which sources said has not accepted the dismantling of its nuclear programme, wanted to retain the uranium in diluted form.

The proposals also include dropping longstanding US demands for limits on Iran’s missile programme, the sources said. The US official disputed that account.

Meanwhile, Israeli Prime Minister Benjamin Netanyahu said his country would not be a party to the agreement. Araghchi said the agreement would end the war in Lebanon, implying an Israeli withdrawal from occupied areas.

Israel’s defence minister said it would not withdraw.