Here's the latest
• Trump on Iran: President Donald Trump decried Tehran as “dishonorable” for what he said were inaccurate state media descriptions of a potential interim US-Iran agreement.
• Conflicting details: A diplomatic source told CNN the proposal would extend the ceasefire, reopen the Strait of Hormuz and pave the way for talks on Iran’s nuclear program. Meanwhile, a senior Trump official said the agreement includes provisions to dismantle Iran’s nuclear program and end Tehran’s support of proxy groups, contradicting Iranian media.
• Where talks stand: Amid the back-and-forth, Pakistan’s prime minister said the US and Iran had agreed to a final text of the agreement and that negotiators are working to “finalize the next steps.” Iran’s foreign minister said an agreement “has never been closer.”
• Possible signing: Sources say a signing ceremony could be held in Geneva, Switzerland, as early as Sunday. US personnel are also planning for another round of peace talks this weekend, according to sources.
Mediator Pakistan says US, Iran have finalized text of peace agreement
The US and Iran have reached a “final, agreed upon text of the peace deal,” Pakistani Prime Minister Shehbaz Sharif said on Friday.
Pakistan, which has served as a mediator during the talks between the two sides, is now working to “finalize the next steps,” Sharif wrote in a post on X.
Sharif also decried what he called the “incessant misinformation campaign being waged by those who want to sabotage the peace deal.”
“Peace has never been this close as it is now,” he added.
US and Iranian accounts of agreement conflict on major issues
What we know about the emerging memo of understanding between the United States and Iran comes from three sources: a diplomat briefed on the negotiations, a Trump administration senior official and Iranian media outlets. CNN has not seen the text of the memo itself.
And the three accounts are deeply misaligned, leaving many questions unanswered about the potential agreement:
- On the Strait of Hormuz: The US official said the strait would reopen. And the diplomat specified that Iran would not be allowed to charge transit fees, but did not say who would oversee maritime traffic. Iranian media outlets make no mention of fees – suggesting Tehran may have dropped that demand – but insist Hormuz would reopen under Iranian management, a condition Washington has repeatedly rejected.
- On nuclear material: The Trump administration official said “Iran’s nuclear program will be dismantled” and nuclear material will be destroyed and removed. In sharp contrast, Iranian media says Iran won’t immediately undertake any new commitments and will only engage in nuclear talks during the 60-day negotiation period following the signing of the memo, “within the framework of its fundamental principles,” including what it calls its right to uranium enrichment. Meanwhile, the diplomat said the agreement “satisfies all US requirements on the nuclear issue,” including on Iran’s stockpile of highly enriched uranium.
- On frozen funds: Conspicuously absent from the diplomat’s account is Iran’s demand to unfreeze billions of dollars of its own funds currently under US sanctions. That issue was reportedly a major obstacle in negotiations over recent weeks. The senior US official told CNN that “none of Iran’s money (is) to be released until they perform.” But Iranian media outlets say the deal includes the release of $24 billion, with half made available immediately upon signing.
- On war reparations: Iranian media has also highlighted a $300 billion reconstruction fund, portraying it as compensation for damage sustained during the war. The US official and the diplomat’s account makes no mention of such a provision.
- On Israel and Lebanon: Despite neither Israel nor Hezbollah being directly involved in the negotiations, sources say the draft includes commitments affecting both parties, such as a ceasefire that includes Lebanon. The arrangement appears to rely on Washington and Tehran to secure compliance from their respective partners. Israel, however, has repeatedly said it will continue striking Hezbollah.
CNN’s Kristen Holmes, Mostafa Salem, Nadeen Ebrahim and Kevin Liptak contributed to this report.
US-Iran agreement "has never been closer," Iran's foreign minister says
A memorandum of understanding between Tehran and Washington “has never been closer,” Iranian Foreign Minister Abbas Araghchi said Friday, as he cautioned against speculation about the agreement.
Until the agreement is finalized, “the media should refrain from entering speculation about its content,” Araghchi wrote on X.
“In line with our responsible and transparent approach, all details will be shared with the public in due course,” he continued.
US President Donald Trump issued a stern rebuke of Tehran earlier Friday after what he said were inaccurate descriptions of the proposal appeared in Iranian state media.
Trump later posted a screenshot of Araghchi’s statement on Truth Social.
Trump admin official: Iran agreed to dismantle nuclear program and end proxy support to terrorist groups
The US-Iran agreement includes provisions to dismantle Iran’s nuclear program and end Tehran’s funding of terrorist groups, according to a senior official in the Trump administration.
The official outlined the following terms, which they said Iran had agreed to:
- Nuclear material will be destroyed and removed
- Iran’s nuclear program will be dismantled
- None of Iran’s money to be released until they perform
- Strait of Hormuz will be open
- No Iran funding of terrorist groups
The official called this “a performance-based deal.” Iranian officials have previously said they would not sign on to an agreement without the release of funds and repeatedly refused to engage on the funding of terrorist groups.
And Vice President JD Vance, calling out what he said is “fake about information a potential deal,” said economic benefits will only flow to Iran if it “meets its obligations.”
“First, the Iranians are not receiving any cash, and no funds are being released for simply signing a deal or attending a meeting,” he wrote on X.
“The deal is structured to ensure that the US and its allies concerns are prioritized, and that if the Islamic Republic of Iran meets its obligations, then economic benefits will flow to them and to the entire region,” he added.
Earlier Friday, President Donald Trump decried Tehran as “dishonorable” for what he said were inaccurate descriptions of the proposal in the media.
CNN previously reported that the interim deal between the US and Iran would extend the ceasefire, reopen the Strait of Hormuz and pave the way for more talks on Iran’s nuclear program, according to a diplomat briefed on the matter.
Iranian state media outlets had reported that Iran would not commit to ceding management of the strait and that the agreement would demand the release of $24 billion of Iran’s frozen funds.
“The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing,” Trump wrote on Truth Social.
Israel will not withdraw from Lebanon, defense minister says, amid potential US-Iran deal
Israel will not withdraw from the territories it occupies in Lebanon, Defense Minister Israel Katz said in a statement Friday, amid a potential US-Iran ceasefire agreement.
Iranian media reported earlier in the day that the agreement under negotiation includes an end to the war on all fronts, including Lebanon. A Trump administration official made no mention of a ceasefire in Lebanon in a conflicting statement on what’s included in the deal.
Katz said the US and Israel have a “shared interest” in preventing Iran from obtaining nuclear weapons. “We expect him to uphold this principle, along with additional principles concerning missiles and proxy terror organizations,” the defense minister said.
US shot down two Iranian attack drones last night, defense official says
The US military shot down two Iranian attack drones that were targeting vessels in the Strait of Hormuz last night, according to a US defense official, which comes as President Doland Trump publicly criticized Iran for continued targeting of ships.
“Iran attempted to strike commercial ships transiting the Strait of Hormuz last night. US forces shot down two Iranian one-way attack drones,” the defense official told CNN. “Traffic flow through the Strait continues.”
For context: US President Donald Trump said he was canceling the strikes against Iran Thursday night that he’d previewed hours earlier because “final points” of a deal with the country had been approved. On Friday morning, Trump decried Tehran as “dishonorable” for what he said were inaccurate descriptions of the proposal.
Trump also said in a social media post that Iran’s continued targeting of ships in the strait was “TOTALLY UNACCEPTABLE.”
Trump lashes out at Iran after terms of deal appear in state media
A day after declaring that an agreement with Iran was all but finalized, President Donald Trump decried Tehran as “dishonorable” for what he said were inaccurate descriptions of the proposal.
“The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing,” Trump wrote on Truth Social.
“What they said, including their weak and pathetic statement on having a deal, bears no relation to the truth,” he went on. “Very dishonorable people to deal with. With them, there is no such thing as dealing in good faith.”
Iranian state media outlets reported earlier Friday on the contours of the deal, including that Iran would not commit to ceding management of the Strait of Hormuz and that the agreement would demand the release of $24 billion of Iran’s frozen funds.
Trump, in his message, said Iran’s continued targeting of ships in the strait was “TOTALLY UNACCEPTABLE.”
“They better get their act together, and FAST!” he said.
60 days is a small window to address persistent issues between Iran and US
An interim deal between the US and Iran – which is by no means firmly agreed yet – would pave the way for more talks on Iran’s nuclear program and to address sanctions removal during a 60-day ceasefire period after its signed, a diplomat briefed on the matter told CNN. Iranian media has reported that compensation for war damages would also be discussed in that time frame.
The need to address three key, contentious points in only 60 days has left commentators wondering if this will truly be a deal to end the war, or rather to kick intractable issues down the road.
The previous nuclear deal with Iran, which President Donald Trump quit in 2018, took more than two years of intense negotiations to agree.
One Middle East analyst told CNN on Friday that if US negotiators rely on similar goals, then a 60-day timeframe is feasible.
Meanwhile, other logistical issues will need to be addressed during the 60-day ceasefire. If the deal to tentatively reopen the Strait of Hormuz is signed, the US and Iran would presumably need to work out how to de-mine the waterway and how to convince shipping companies it’s safe to transit.
“No deal in reality”: Expert cautions on optimism about potential deal
Despite President Donald Trump’s claims that the US had ended the war with Iran and reached an understanding with Tehran, a regional expert cautioned a conclusive deal is still some way off.
Trump said on Thursday that the two sides had agreed to a “very strong memorandum of understanding” to stop the fighting - a provisional agreement that would give room to negotiate other deals. Iran says it is yet to decide on a deal.
And regional expert H.A Hellyer said the two sides were still far from a full agreement.
“This is an MOU (memorandum of understanding) that’s being discussed… But there’s no deal in reality,” he told CNN’s Salma Abdelaziz.
President Trump’s comments came after he canceled further strikes on Iran and suggested an agreement had been reached without detailing its terms.
CNN’s Ellse Hammond contributed to this report.
Israel pressing to prevent unfreezing of Iranian assets as part of ceasefire agreement, source says
Israel is pressing the US to prevent the unfreezing of Iranian assets as part of a ceasefire agreement, according to an Israeli source familiar with the discussions.
Prime Minister Benjamin Netanyahu has spoken regularly with President Donald Trump, including on Thursday night after Trump claimed that Israel was among several nations in the Middle East that approve of the agreement.
Netanyahu later issued a statement saying Trump committed to removing Iran’s enriched uranium, dismantling its nuclear program, limiting its missiles and ending its support for proxies as part of a final deal. Trump has focused his public comments on the enriched uranium; he hasn’t mentioned missiles or proxies in weeks.
CNN previously reported that Trump’s announcement suggesting an imminent agreement with Iran surprised Netanyahu, who was holding a meeting with top security officials about Iran at the time.
“As long as I am the Prime Minister of Israel, Iran will not have nuclear weapons,” Netanyahu said in a statement on Friday.
Israel has long been skeptical of Iran’s intention in negotiations, believing it wasn’t negotiating in good faith. Israel believes that even if a memorandum of understanding is signed between the US and Iran, it will not lead to a final deal, the Israeli source told CNN.
Trump touts an imminent deal with Iran, but we’ve been here before
We’ve been here before, or so it seems, with US President Trump touting he is close to a deal with Iran as the weekend nears.
There are echoes of “The Grand Old Duke of York” - the English nursery rhyme that mocks the futility of military action. York marched his army up and down a hill; similarly, Trump has on 38 times raised expectations of deal before reversing course, tanking briefly buoyant markets.
His war of choice against Iran is exposing limits to the art of his type of deal-making. Iran, which has a history of driving a hard bargain and testing the patience of US presidents with their intransigence, is also stalling.
A former US President, George W. Bush, had something to say about being duped a few years ago, albeit slightly mangling his delivery, “Fool me once, shame on … shame on you. Fool me… You can’t get fooled again!” although the world understood he really meant “fool me twice, shame on me.”
It begs the question are we getting “fooled again” when Trump touts the deal as near done.
He has a lot of reasons, not least to restore confidence in him, to reach a deal this weekend.
A deal with Iran now could gild celebrations for his 80th birthday this weekend, the 250th US independence anniversary and the start of the World Cup – and tee him up for his next trip out on the world stage at the G7 in France.
Sources familiar with the talks say the signing is getting close, talks on phase one are over; they also caveat that phase two, to be completed within 60 days with be more technical and tougher.
Trump may be right, and the end of his war is in sight. But don’t be surprised next week if we are back down the hill again, empty handed.
What Iranian media says a US-Iran agreement could look like
Following multiple rounds of revisions, a memorandum of understanding with the United States has “effectively reached its final stage” based on Iran’s 14-point proposal, according to Iran’s state news agency IRNA.
Here’s what Iranian media outlets, including IRNA and the semi-official Mehr news agency, are saying about the draft interim agreement:
- The document addresses an end to the war on all fronts, including Lebanon. The US would “commit to compelling Israel” to end hostilities in Beirut if the agreement is signed.
- On the nuclear file, Iran won’t immediately undertake any new commitments, and will only engage in nuclear talks during the 60-day negotiation period following the signing of the memorandum, “within the framework of its fundamental principles,” including its right to uranium enrichment.
- On the Strait of Hormuz, Iranian outlets stressed that Tehran wouldn’t commit to ceding management of the strait or “restore conditions” to their prewar status. The memorandum only discusses “the normalization of maritime traffic” in the waterway and an end to the US blockade of Iranian ports. The US would have no role in the strait’s management, which would only be coordinated regionally with coastal nations.
- On Iran’s frozen assets, the agreement would demand the release of $24 billion of Iran’s frozen funds – half of which must be made available immediately upon signing. IRNA said the draft document claims Iran has “obtained specific guarantees from third parties” regarding the eventual payment.
- Iran’s demand for the removal of all sanctions against it would be addressed within 60 days. During that period, the US would also commit not to add more military forces in the region or impose new sanctions on Tehran.
- On war reparations, Mehr said the document includes a reconstruction plan for Iran totaling at least $300 billion. IRNA said the specific implementation mechanism would be negotiated during the 60 days.
- On Iran’s ballistic missile program and proxies, Mehr said there has been a “definitive removal” of those topics.
Meanwhile, Tasnim news agency, which is close to the Revolutionary Guards, said the text “still requires review and finalization by the relevant institutions in Iran.”
After numerous false starts, pivotal Iran war peace talks may finally be in sight
Over the past several weeks, hundreds of US security personnel have been quietly preparing for a possible fresh round of peace talks aimed at finally bringing to a close the kinetic hostilities with Iran, only to have the plans continually disrupted by unforeseen events.
According to sources involved in the planning for peace, a seemingly endless series of disruptive occurrences have mimicked the movie “Groundhog Day”: peace talks are planned, military and security advance teams are launched overseas from the US for the potential arrival of Vice President JD Vance and Special Envoy Steve Witkoff to meet with Iranian counterparts, and then plans totally fall apart.
In April, Vance and other senior US officials took part in negotiations with Iranian officials in Pakistan, but no agreement was reached. Sources told CNN a massive footprint of US security personnel, including US Special Forces, returned to Pakistan after the failed talks on hopes another round would occur, but they never materialized.
In recent weeks, the venue for hoped peace talks shifted from Pakistan to Switzerland, sources said, followed by on-again, off-again, launches of numerous security personnel to Geneva to coordinate a planned signing of the end of hostilities.
On Thursday, President Donald Trump signaled a fresh wave of attacks on Iran had been called off and a tentative agreement with Iran had been reached.
Sources tell CNN that US military and security personnel are once again planning for yet another round of peace talks involving senior US officials, possibly as early as this weekend, with security planning personnel on the way to Europe to help facilitate dialogue in pursuit of a final agreement.
But as the recent incident involving the downing of a US military helicopter by Iran proved, weeks of tenuous peace talks still remain at the mercy of unforeseen day-to-day events.
Signing ceremony for potential Iran agreement would likely be held in Geneva, sources say
A signing ceremony for a memo of understanding with Iran would most likely be held in Geneva, Switzerland, three sources told CNN on Friday.
That signing could take place as early as Sunday, according to a person familiar with plans.
That comes after US President Donald Trump on Thursday touted a “great settlement” that could resolve the war with Iran, suggesting it would be finalized in the coming days. Trump said he anticipated a signing ceremony for the document soon, potentially in Europe, to be attended by Vice President JD Vance. However, Iranian officials have yet to confirm an agreement has been reached.
Two sources with knowledge of the diplomatic talks said the signing ceremony would be held in Geneva – not far from where Trump and a US delegation will attend a G7 summit next week in France. One of those sources said a signing ceremony would mark the start of “phase two” of diplomatic talks, as officials work through the implementation of the memo of understanding.
Multiple sources said the memo is being called the “Islamabad declaration,” in recognition of the key mediating role Pakistan played. But nothing has been confirmed, and an Iranian source suggested the Austrian capital Vienna was also being considered.
CNN’s Kevin Liptak contributed to this report.
This post has been updated with additional information.
Key mediator Pakistan touts "progress achieved" on US-Iran understanding
Pakistan’s Ministry of Foreign Affairs said Friday it welcomed the “progress” made between the United States and Iran, providing yet another hint that an interim deal is taking shape.
Pakistani Foreign Minister Muhammad Ishaq Dar discussed the latest developments between the two countries in a call with the European Union’s chief diplomat on Friday, a statement from the ministry said.
“Both sides welcomed the progress achieved through sustained diplomatic engagement and expressed hope that these efforts will soon lead to a durable understanding and peaceful resolution,” according to Pakistan’s readout of their call.
For context: Multiple sources have told CNN that a memo of understanding between the US and Iran is being called the “Islamabad declaration,” in recognition of the key mediating role Pakistan played. US President Donald Trump suggested Iran’s supreme leader was on board with the memo, but the Iranian Foreign Ministry spokesperson said his country had not yet reached a final decision on any agreement.
Here are some of the key points in the US-Iran deal, diplomat says
The interim deal between the US and Iran would extend the ceasefire, reopen the Strait of Hormuz and pave the way for more talks on Iran’s nuclear program, a diplomat briefed on the matter told CNN.
The diplomat said the two sides had agreed on the text of the memorandum of understanding, as it is known, but that it is yet to receive final signoff.
Here are some key points in the agreement, according to the diplomat:
- A 60-day ceasefire “on all fronts,” including Lebanon, will begin upon signing.
- The Strait of Hormuz will be reopened immediately, without Iran levying any fees for passage. It ensures the free flow of energy and commercial goods. Traffic through the waterway would return to prewar levels after 30 days of signing.
- The US blockade of Iranian ports will be lifted and there would be some sanctions relief “based on the progression of the deal and continued engagement in good faith” – though it does not include a set date for sanctions relief.
- The agreement “satisfies all US requirements on the nuclear issue,” including Iran pledging not to obtain a nuclear weapon, as well as the issue of Iran’s stockpile of highly enriched uranium.
- The deal will be called the “Islamabad Agreement.”
The diplomat didn’t say whether the deal includes the release of billions of dollars in frozen Iranian funds, a key Iranian demand that had reportedly been holding up the agreement. The diplomat said the status of the Strait of Hormuz and Iran’s nuclear program were among the topics that were discussed in the final days of negotiations.
US President Donald Trump said on Thursday that the US had “ended the war with Iran” and that Vice President JD Vance could attend a signing ceremony in Europe within days. A second diplomat told CNN that the venue for such a signing could be Geneva, Switzerland – not from where Trump and a US delegation will attend a G7 summit in France next week.
The Iranian Foreign Ministry spokesperson said earlier that reports of a deal were “merely speculation” and that his country has not yet reached a final decision on any agreement, according to state media.
Oil prices tumble, equities rally on optimism a US-Iran deal is near
Oil prices have slid more than 4% and stocks are rallying on renewed hope of a diplomatic breakthrough in the Middle East after President Donald Trump called off planned strikes against Iran, saying a peace deal was imminent.
Although Trump has dangled this prospect many times before – and Iran has yet to confirm it will agree to the pact – investors seized on the US president’s comments that a signing ceremony could be held in Europe as soon as this weekend, attended by Vice President JD Vance.
Brent crude, the global oil benchmark, has fallen 4.4% to $86.53 a barrel, its lowest since mid-April. West Texas Intermediate, the US benchmark, is trading 4.5% lower.
Weaker oil prices have helped lift equity markets. European stock indices have all gained more than 1.5% following strong gains in Asia, where South Korea’s KOSPI led the charge with an 8% jump.
Wall Street futures are pointing to a slightly firmer start, with all eyes on Elon Musk’s SpaceX which will begin trading after a record-breaking initial public offering.
Deaths of Indian seafarers in US strike test countries’ diplomatic relations
The deaths of three Indian seafarers in a US strike on a commercial oil tanker has prompted public fury in India, and added new friction to an already strained phase between New Delhi and Washington.
On Wednesday morning, the M/T Settebello was transiting the Sea of Oman, laden with Iranian oil, when a US aircraft fired precision munitions into its engine room.
The three men found dead following the attack on the Palau-flagged vessel are the first seafarers confirmed to have been killed in a US strike as part of Washington’s operation to blockade Iranian ports, raising concerns in India that its nationals are becoming collateral damage in a war that isn’t their own.
New Delhi, which has become increasingly worried about the safety of its seafarers during the US-Israeli war with Iran, has now urged Washington to halt strikes on shipping vessels.
Over the past year, the once-robust ties between India and the US have deteriorated as political and economic strains have begun to overshadow their strategic partnership. Tensions were further compounded by steep US tariffs on many Indian exports.
Washington has recently tried to repair ties with Delhi by appointing an ambassador to India and with a visit by Secretary of State Marco Rubio last month.
But New Delhi may now be looking for another gesture from the US, as it tries to contain the pressure at home over the deaths of the seafarers.
Professor who war-gamed Iran conflict doesn't buy Trump's deal claim
US President Donald Trump has said a breakthrough deal with Iran, but political science professor Robert Pape does not believe the pronouncement. He told CNN’s Laura Coates the US is “not at an endgame, we’re in the middle game.”
For subscribers: Trump has proclaimed an agreement with Iran was imminent nearly 40 times. He’s also repeatedly claimed Iran has caved to his demands even as Tehran’s defiance has demonstrated the opposite. Read CNN’s analysis of his latest assertion.
World Bank projects war will slow global economic growth to weakest pace since pandemic
The Iran war is projected to slow global economic growth to its weakest pace since the Covid-19 pandemic and renewed hostilities could cause it to slump further, according to a report released by the World Bank on Thursday.
Global economic growth is forecast at 2.5% this year, down from 2.9% in 2025, it said.
“If energy supply disruptions prove more severe than assumed and are accompanied by substantial financial stress, global growth could fall to just 1.3% in 2026,” the World Bank added.
Oil, gas and fertilizer prices have spiked as shipping through the Strait of Hormuz remains effectively blocked.
Because of the Iran war, growth for all developing economies is forecast to be weaker than in 2025. Per capita income across developing countries except China and India is not expected to return to the pre-pandemic level until after 2028, it said.
