The proposed 'Islamabad Agreement' between the United States and Iran remains in limbo despite Pakistan's Prime Minister Shehbaz Sharif announcing that both nations have agreed on the final wording of a peace deal. While Washington expresses optimism, Iranian officials insist no final decision has been taken.
US Forces Intercept Iranian Drones
US forces intercepted two Iranian one-way attack drones targeting commercial vessels transiting the Strait of Hormuz overnight, a US defence official told CNN, adding that 'traffic flow through the Strait continues.' Multiple drones were shot down, according to Reuters.
Divergent Views on Deal Status
A senior US official said Washington is '80-85% confident' of signing an agreement within days, while Iranian Foreign Minister Abbas Araghchi said the memorandum could be signed digitally 'in the coming days.' However, Iran's foreign ministry spokesperson Esmail Baghaei called reports of a finalized deal 'merely speculation,' insisting Tehran has not yet taken a final decision and accusing Washington of repeatedly changing its positions.
Iran insists it will not cede management of the Strait of Hormuz or restore pre-conflict conditions. Araghchi said service fee collection remains part of negotiations and that 'we will not forget Lebanon's Hezbollah in any agreement.'
Nuclear Program and Conditions
A White House official told AFP that Iran has agreed to dismantle its nuclear program and destroy nuclear material under a 'performance-based deal,' with Vice President JD Vance clarifying that Iran will receive 'no funds for simply signing a deal.' Iran has dramatically escalated efforts to seal off its cache of near bomb-grade uranium, deliberately collapsing tunnels and booby-trapping entrances with explosive mines, according to sources familiar with US intelligence.
Regional Reactions
Defense Minister Israel Katz said Israel will not withdraw from security zones in Lebanon, Syria and Gaza, instructing the IDF to prepare for independent action against Iran's nuclear program regardless of any US agreement. External Affairs Minister S. Jaishankar lodged a 'strong protest' with US Secretary of State Marco Rubio over US Navy attacks that killed three Indian mariners in the Gulf.
Pakistan's Role and Deal Terms
Pakistan's prime minister said mediators are working to finalize a deal. Three regional officials said the emerging deal is expected to pave the way for reopening the Strait of Hormuz, the phased lifting of sanctions on Iran, and the release of frozen Iranian assets. A senior US administration official said technical details on how to remove Iran's enriched uranium would be worked out during a 60-day period following the signing.
President Donald Trump told Axios that Iran has privately apologized for releasing false information about the emerging memorandum, while maintaining that a deal could still be signed as early as this weekend or Monday.
