The United States and Iran are moving closer to finalizing an agreement to reopen the Strait of Hormuz, coinciding with next week's Group of Seven summit, according to senior officials familiar with the matter.
Potential Signing in Geneva
This year's G7 summit is scheduled to take place in Evian, located in the French Alps, from June 15 to June 17. Nearby Geneva, Switzerland, is being considered as a possible location for the signing ceremony as early as Sunday, sources indicated.
A senior Iranian official suggested overnight that a deal is likely, a G7 official reported, requesting anonymity due to the sensitive nature of the discussions. Another G7 official noted that the agreement would probably take the form of a memorandum of understanding rather than a final treaty.
However, the official cautioned that Iran has not yet confirmed its readiness for a signing ceremony, and communications between Tehran and Washington have been slow since the war began in February.
Previous Diplomatic Setbacks
A second G7 official confirmed signs that both nations are close to signing but warned that similar diplomatic progress has previously failed to materialize. An Iranian foreign ministry spokesman stated, "We have not yet reached a conclusion on this matter," while acknowledging progress toward ending a conflict that has disrupted the Middle East and driven energy prices higher.
Another diplomat briefed on the talks said Iranian negotiators have agreed to the deal. It remains unclear whether Supreme Leader Mojtaba Khamenei, who holds final authority over foreign policy and military decisions, has approved it. Khamenei has been in hiding since the war erupted with US and Israeli strikes on Iran in late February.
Market Reactions
Oil prices fell and equities rose late Thursday after President Trump announced he had canceled imminent airstrikes on Iran and claimed an agreement was nearly complete. The proposed deal would extend the US-Iran truce by 60 days, require Tehran to reopen the Strait of Hormuz, and involve Washington ending its blockade of Iranian ports. Energy prices continued to drop on Friday.
The developments come amid a broader context of regional instability and economic volatility, with the potential agreement seen as a key step toward de-escalation.
