The United States and Iran have reportedly agreed the text of a memorandum of understanding that would extend their ceasefire, reopen the Strait of Hormuz and open the way to further talks on Tehran’s nuclear programme, though the document has yet to receive final signoff and Iran has publicly downplayed reports of a deal, CNN reported, citing a diplomat briefed on the matter.

The diplomat said the two sides had settled on the wording of the memorandum but that it still awaited sign-off. Iran’s state news agency IRNA said the document had “effectively reached its final stage” on the basis of a 14-point Iranian proposal. Tasnim, a news agency close to the Islamic Revolutionary Guard Corps, struck a more cautious note, saying the text “still requires review and finalisation by the relevant institutions in Iran.”

US President Donald Trump said on June 11 that Washington had “ended the war with Iran,” touting what he called a “very strong memorandum of understanding” and a “great settlement” that would be finalised within days. He suggested Iran’s supreme leader was on board and that Vice-President JD Vance could attend a signing ceremony in Europe. Tehran was markedly cooler: the Iranian foreign ministry spokesman said reports of a deal were “merely speculation” and that no final decision had been reached on any agreement.

Geneva signing floated for as early as Sunday

A signing ceremony would most likely be held in Geneva and could take place as soon as June 14, three sources told CNN, with the Swiss city lying not far from the G7 summit Trump and a US delegation are due to attend in France next week. One Iranian source suggested Vienna was also under consideration. US military and security personnel were said to be planning another round of talks over the weekend.

Several sources said the memorandum was being referred to as the “Islamabad declaration” or “Islamabad Agreement,” in recognition of a mediating role played by Pakistan. One source described a signing as the start of a “phase two” of diplomacy, during which officials would work through implementation.

Ceasefire, Hormuz and the nuclear file

According to the diplomat, a 60-day ceasefire “on all fronts,” including Lebanon, would begin on signing. Iranian outlets said the US would “commit to compelling Israel” to halt hostilities in Beirut.

The two sides’ accounts of the Strait of Hormuz, however, diverge. The diplomat said the strait would reopen immediately, with no Iranian fees levied on passage, ensuring the free flow of energy and commercial goods, and that traffic would return to prewar levels 30 days after signing. Iranian media framed it differently, stressing that Tehran would not cede management of the waterway or “restore conditions” to their prewar status.

By that account the text covers only the “normalisation of maritime traffic” and an end to the US blockade of Iranian ports, with no US role in managing the strait, which would be coordinated regionally among coastal states. Both accounts agree the blockade of Iranian ports would be lifted.

The nuclear file is similarly contested. The diplomat said the agreement “satisfies all US requirements on the nuclear issue,” including an Iranian pledge not to obtain a nuclear weapon and a resolution of its stockpile of highly enriched uranium.

Iranian outlets said Tehran would take on no immediate new commitments and would enter nuclear talks only during the 60-day negotiating window after signing, “within the framework of its fundamental principles” explicitly including what they described as Iran’s right to uranium enrichment.

Sanctions, frozen funds and reconstruction

Iran’s demand for the removal of all sanctions would be addressed within the 60-day period. The diplomat said sanctions relief would be tied to “the progression of the deal and continued engagement in good faith,” with no fixed date set. During those 60 days, the US would also commit not to add military forces in the region or impose new sanctions on Tehran.

Iranian media said the agreement would require the release of $24bn in frozen Iranian funds, half to be made available immediately on signing, with IRNA reporting that the draft claimed Iran had “obtained specific guarantees from third parties” over eventual payment. The diplomat’s account did not address frozen assets, a demand that had reportedly held up the deal.

On reparations, the Mehr news agency said the document included a reconstruction plan for Iran totalling at least $300bn, with the implementation mechanism to be negotiated during the 60 days.

Amid the ongoing talks Iranian Friday Prayer Leader Ahmad Khatami said warned, “This enemy understands neither the language of negotiation nor the language of a ceasefire, but only the language of force,” Khatami told worshippers, adding that Iran’s armed forces had “made them understand this well, and will make them understand it again.”

He characterised the US and Israel as coordinated adversaries with shared aims, saying world public opinion was well aware of the links between Washington and the “Zionist regime.”