Morning update

Good morning Middle East Eye readers, 

The United States and Iran say a peace agreement to end more than three months of war is closer than ever, but both sides stress that no final deal has been signed.

Diplomatic momentum is building ahead of a possible signing ceremony in Geneva, while fighting and military activity continue in Lebanon despite expectations of a broader regional de-escalation.

Here are the key updates from the past few hours: 

Iranian foreign minister Abbas Araghchi said a memorandum of understanding with the United States has “never been closer” but cautioned against speculation before final approval.

Pakistani Prime Minister Shehbaz Sharif said the final agreed text of the peace deal has been reached, though procedural and implementation steps remain outstanding.

Trump reposted Araghchi’s statement and signalled confidence in the negotiations after previously criticising reports about leaked details of the agreement.

Iranian officials said the memorandum currently contains 14 articles and would launch a 60-day first phase of negotiations covering unresolved issues, including the nuclear file.

Tehran warned that future negotiations would not proceed if commitments under the memorandum are not implemented within the agreed timeframe.

US media reported preparations for a possible signing ceremony in Geneva, with Vice President JD Vance reportedly expected to attend.

A senior US official said no frozen Iranian funds would be released until Tehran fulfils its obligations under the agreement.

Iran's parliament speaker warned Washington against abandoning commitments, while Tehran described the memorandum as a means of formalising gains achieved during the conflict.

The US military said it shot down multiple Iranian drones over the Strait of Hormuz as maritime tensions remained elevated.

Iranian officials said approximately $24 billion in frozen assets could be unfrozen under the broader framework, though the UAE denied reports that funds had already been released or transferred.

Israeli attacks continued in Lebanon, including strikes that reportedly hit an emergency response facility and wounded paramedics.

The United Nations reported heavy Israeli troop and air movements near the Lebanon border, raising concerns about further escalation despite diplomatic progress elsewhere.

Oil flows through the Strait of Hormuz have recovered to roughly half of pre-war levels, according to US officials, signalling gradual improvement in regional shipping conditions.