U.S. and Iran move closer to memorandum as Trump rejects leaked deal terms

DUBAI/WASHINGTON/PARIS — U.S. President Donald Trump has rejected reports describing the contents of a leaked memorandum aimed at easing tensions between Washington and Tehran, insisting that the terms circulating in media accounts do not reflect the agreement under discussion between the two countries.

The dispute emerged as U.S. and Iranian negotiators appeared to be nearing a diplomatic breakthrough that could help de-escalate regional tensions, reopen critical shipping routes in the Gulf, and establish a framework for broader talks on Iran’s nuclear program.

According to versions of a proposed memorandum reviewed by Reuters and described by Western, Pakistani, Gulf, and senior Iranian sources, the draft agreement would grant Iran access to billions of dollars in previously frozen assets and ease sanctions on Iranian oil exports. In exchange, Iran would lift its blockade of the Strait of Hormuz, one of the world’s most important maritime chokepoints for global energy supplies.

Trump sharply criticized reports describing the draft, saying the leaked details were inaccurate.

“The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing,” Trump said on social media, accusing Iranian officials of acting dishonorably.

Iranian Foreign Minister Abbas Araqchi acknowledged that negotiations had entered a critical stage but cautioned against drawing conclusions from leaked drafts. He said the memorandum was closer to completion than at any previous point while emphasizing that discussions were continuing.

Sources familiar with the talks said negotiators have made significant progress and are working to finalize remaining issues before any formal signing takes place.

One of the principal unresolved matters involves language related to hostilities in Lebanon.

Iran has sought assurances that Israel would halt military operations against Hezbollah, the Tehran-backed political and militant group based in Lebanon. Israeli officials have resisted such provisions, with statements from Israel’s defense leadership indicating that the country does not intend to withdraw from territory captured during recent fighting.

The draft versions reviewed by Reuters largely reflect long-standing Iranian negotiating positions while omitting several demands previously emphasized by Washington.

Notably absent from the reported drafts are provisions requiring Iran to surrender or eliminate its stockpile of highly enriched uranium, a central U.S. demand in past nuclear negotiations. The documents reportedly postpone substantive discussions regarding Iran’s nuclear program for up to 60 days while broader talks continue.

Instead, the memorandum reiterates Iran’s commitment not to pursue nuclear weapons, a position Tehran has consistently maintained under its obligations as a signatory to the Nuclear Non-Proliferation Treaty.

A senior U.S. official disputed characterizations that Washington had softened its position, saying any final agreement would still require the dismantling of Iran’s nuclear program and the destruction or removal of enriched uranium stockpiles.

“None of their money released until they perform. Strait of Hormuz will be open. No Iran funding of terrorist groups,” the official told Reuters, describing the arrangement as a performance-based agreement.

Officials involved in the negotiations have indicated that the text of the memorandum is nearing completion, although final approval and implementation details remain under discussion.

U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammad Baqer Qalibaf have been identified among officials expected to play key roles should a formal signing proceed. Geneva has been mentioned as a possible venue, though no final announcement has been made.

Israel, despite being directly involved in the broader regional conflict and a close U.S. ally, has reportedly not participated in the negotiations.

Israeli Prime Minister Benjamin Netanyahu has said Israel will not be a party to the memorandum and has publicly disagreed with efforts by the Trump administration to restrain Israeli military operations in Lebanon while pursuing a diplomatic settlement with Iran.

Financial markets responded positively to reports that an agreement may be approaching. Global stock markets advanced while oil prices declined amid expectations that tensions in the Gulf could ease.

Despite growing optimism, security concerns remain elevated around the Strait of Hormuz. Reports of military incidents involving drones and commercial shipping underscore the fragile security environment in the region.

The waterway carries a significant share of the world’s seaborne oil shipments, making any disruption a major concern for global energy markets.

The negotiations have also become a domestic political issue in the United States. Rising fuel prices and concerns about regional instability have increased pressure on the White House, while some Republican lawmakers have expressed concern that a prolonged Gulf conflict could carry political consequences ahead of congressional elections.

The talks have revived longstanding debates surrounding Iran’s nuclear program.

In 2015, Iran reached a landmark nuclear agreement with world powers under then-President Barack Obama. The accord imposed strict limitations on Tehran’s nuclear activities in exchange for sanctions relief.

Trump withdrew the United States from the agreement in 2018 during his first term, arguing that it failed to adequately address Iran’s missile program and regional activities. Following the withdrawal, Iran expanded uranium enrichment activities and significantly increased its stockpile of enriched uranium.

As negotiations continue, diplomats face the challenge of bridging differences over nuclear restrictions, sanctions relief, regional security issues, and the role of U.S. allies in the Middle East. While major obstacles remain, officials on both sides acknowledge that the current talks represent one of the most significant diplomatic openings in recent years.