Day 105 of the Middle East War: U.S. and Iran Say Agreement Closer Than Ever

On the 105th day of the U.S.-led military campaign against Iran, senior officials from both the United States and Iran announced today that an agreement to end the Middle East war is closer than ever before. Pakistan, serving as mediator, also expressed optimism, stating that a deal once considered unattainable is now within reach.

Here is a summary of the latest developments in the Middle East conflict.

U.S. and Iranian officials say they are close to signing a memorandum of understanding (MoU) to end hostilities. A senior U.S. official said both sides have reached consensus on the text, and Washington expects to sign this preliminary agreement in the coming days.

Negotiation sources indicate the proposed MoU includes the reopening of the Strait of Hormuz and the lifting of U.S. naval blockades on Iranian ports. Talks on Iran's nuclear program will be held at a later stage—this was the original justification given by President Trump for launching the war.

Israel, which joined the U.S. in the military campaign, is not participating in the negotiations. Israeli Prime Minister Benjamin Netanyahu stated that Israel will not be a signatory to this memorandum.

A senior U.S. government official said there is an "80% to 85% confidence level" that a peace agreement with Iran can be signed within the next few days.

The official added: "If you had asked me this morning about my confidence in signing the agreement, I might have said 75%, but now it's probably up to 80% to 85%. However, it's not yet 100%."

Just hours after both nations announced that a peace deal is closer than ever, the U.S. military reported shooting down multiple Iranian drones targeting commercial vessels in the Strait of Hormuz.

U.S. Central Command, responsible for military operations in the region, posted on X (formerly Twitter): "Iran launched several one-way attack drones attempting to strike commercial ships transiting the Strait of Hormuz. U.S. forces have shot down all drones within the past few hours. Maritime traffic remains unimpeded."

Iranian Foreign Minister Abbas Araghchi said that once the draft agreement with the U.S. is finalized, it could be signed "remotely," possibly "within the coming days."

Earlier, he stated that the framework of the "Islamabad Memorandum of Understanding," aimed at ending the U.S.-Iran war, has "never been closer to completion."

Iran's semi-official Mehr News Agency today revealed the draft text of the agreement between Tehran and Washington. If accepted, Iran's $24 billion in frozen assets would be unfrozen within 60 days.

Iran's official IRNA news agency reported that under the draft agreement, Tehran will not relinquish control over the strategically vital Strait of Hormuz.

As prospects for a U.S.-Iran peace deal grow stronger and signs emerge of increased shipping through the Strait of Hormuz, international crude oil prices plunged today.

New York's West Texas Intermediate (WTI) July futures fell 3.7%, closing at $84.43 per barrel. London's Brent Crude August futures dropped 3.6%, closing at $87.13 per barrel.

Pakistani Prime Minister Shehbaz Sharif said the final text of the U.S.-Iran peace agreement has been agreed upon by all parties.

Sharif posted on X: "We can confirm that a final peace agreement text has been reached and agreed upon by the U.S. and Iran. Pakistan is currently working closely with both sides to finalize the next steps."

Switzerland's foreign ministry told AFP that Switzerland has offered to host the signing ceremony for a potential U.S.-Iran peace agreement, stating, "Switzerland is fully engaged in this process and maintaining close contact with both the United States and Iran."

Four sources said the United Arab Emirates (UAE) has agreed to release several billion dollars in funds to Iran. The wealthy Gulf Arab state, which suffered weeks of attacks from Iran during the U.S.-Israel military campaign, has now made a strategic shift.

Two regional sources told Reuters that the UAE has agreed to release a total of $10 billion, with over $3 billion already paid.

Two other informed sources said the total amount involved could reach $20 billion, adding that the move is intended in exchange for Iran halting attacks on the UAE. One source confirmed that the first tranche of $3 billion has already been transferred. (Compiled by: Zhang Xiaowen)