Trump bristles over memorandum text that appears to favour Iran

DUBAI/WASHINGTON/PARIS: Leaked terms of a proposed memorandum to end the war in the Gulf outlined by Western, Pakistani and Iranian sources on Friday appeared to favour Iran, drawing criticism from U.S. President Donald Trump, who called the reports inaccurate.

Versions and accounts of the memorandum were provided to Reuters by Western sources, sources from mediator Pakistan and senior Iranian sources. Similar drafts were also published in Iranian media.

The sources all stressed that the text was not yet final, with a Western source, an Iranian source and a Gulf source saying a key issue yet to be resolved was language on ceasing hostilities in Lebanon. Iran has demanded Israel end a aggression against the Hezbollah.

While there were minor differences in the accounts, all versions appeared to accept the principal terms proposed by Tehran over months of negotiations, while omitting key U.S. demands.

In a post on social media, Trump did not say what was inaccurate in the reports, but said: “The terms that Iran leaked out to the Fake News have NOTHING to do with the terms that were agreed to, in writing.”

“Very dishonorable people to deal with,” he said of the Iranians.

Iran’s Foreign Minister Abbas Araqchi said on Friday that the memorandum had “never been closer”, but warned against speculation over its contents until it was finalised.

A senior U.S. official, describing the agreement, referred to terms that were not included in the texts discussed by the sources with Reuters, including the destruction of Iran’s stockpile of highly enriched uranium.

Under the terms of the text described by sources to Reuters, the United States would immediately begin providing Iran with billions of dollars in unfrozen assets, and waive sanctions on its oil exports, in return for Iran lifting its blockade of the Strait of Hormuz, largely closed since the war began.

Discussion of Iran’s nuclear programme would be set aside for a 60-day period of talks on a final settlement. The only explicit reference to nuclear policy for now would be a restatement of Iran’s commitment not to seek nuclear weapons, already Tehran’s official position dating to its ratification of the U.N. Non-Proliferation Treaty in 1970.

Among the major U.S. concessions would be discussion of hundreds of billions of dollars in potential war reparations to Tehran, and the dropping of longstanding demands for curbs on Iran’s missile programme.

No mention of uranium in leaked versions of text

Washington has previously demanded Iran give up its stockpiles of highly enriched uranium. But none of the versions of the text reviewed by Reuters includes mention of it, and the sources said the demand had been explicitly excluded for now.

The senior U.S. official said, however, that the uranium stockpiles “will be destroyed and removed” and Iran’s nuclear programme would be dismantled.

“None of their money released until they perform. Strait of Hormuz will be open. No Iran funding of terrorist groups,” the official said. “This is what they have agreed to. This is a performance-based deal.”

A Western source said that if language can be agreed, the memorandum could be signed as soon as Sunday by U.S. Vice President JD Vance and Iran’s parliament speaker, Mohammed Baqer Qalibaf, with Geneva for now seen as the likeliest venue.

Vance said on Friday the potential deal is structured to ensure that economic benefits would flow to Tehran only if it meets its obligations.

Despite jointly launching the war with the United States, Israel has so far been excluded from the negotiations, and Prime Minister Benjamin Netanyahu said his country would not be party to the memorandum.

Netanyahu has repeatedly clashed with Trump in recent weeks over U.S. demands that Israel curb military action in Lebanon to let Washington reach a deal with Tehran. Israel’s defence minister said Israel would not withdraw from territory in Lebanon.

Oil price falls

The signs of a deal have emerged at the end of a week that saw the biggest escalation in the Gulf since a ceasefire halted U.S. and Israeli attacks on Iran. Israel and Iran traded fire and Washington then launched two days of strikes on Iran, triggering return fire on U.S. bases.

Trump’s announcement of a deal prompted global shares to rally and oil prices to slip. Brent crude prices were down more than 3% to their lowest in nearly two months.

Tension remained high around the strait on Friday, with U.S. forces shooting down two Iranian one-way attack drones. Iran’s military stopped a tanker from transiting the strait, state media said, reporting the sound of explosions early on Friday.

The conflict has become a political headache for the White House, with polls showing Trump’s approval ratings sinking amid voter anger over high gasoline prices.

Some Republicans worry that the war’s unpopularity could cost them control of Congress in November’s midterm elections. But many Republicans hold hawkish positions on Iran and could have difficulty endorsing an agreement viewed as yielding concessions.

Pakistan budget, hit by Iran war and IMF, to squeeze middle class: Reuters

Tehran, which has always insisted its nuclear programme is peaceful, accepted tight curbs on it in return for the lifting of sanctions under a 2015 agreement with the administration of then-U.S. President Barack Obama.

Trump abandoned that deal during his first term in 2018 and Iran responded by ramping up its enrichment of uranium, producing more than 400 kg (900 pounds) of material at close to the purity needed to make a bomb.