Iran says deal to end fighting with US has 'never been closer'

A deal with the US to end fighting in Iran has "never been closer", Iran's Foreign Minister Seyed Abbas Araghchi has said.

Pakistani Prime Minister Shehbaz Sharif, who has been mediating between the warring sides, echoed Araghchi's statement, saying "a final, agreed upon text of the peace deal has been reached and Pakistan is now working closely with both sides to finalize the next steps".

US President Donald Trump reposted Araghchi's statement, which also asked the media not to speculate about the content of the deal.

Iranian media have published details of the alleged deal, prompting Trump to say they had "nothing to do with the terms that were agreed to" and "bears no relation to the truth".

Trump accused Tehran of leaking the details and added that they were "very dishonorable people to deal with".

On Thursday, the US president said he had cancelled "scheduled attacks" against Iran, because negotiators had "just made a great settlement" - a deal that was likely be to signed imminently.

Trump has repeatedly talked up the prospects of a deal to end hostilities that began with wide-ranging US and Israeli strikes across Iran on 28 February.

Iran responded with attacks on Israel and US-allied states in the Gulf - as well as effectively closing the Strait of Hormuz, a key shipping route for the world's oil and liquefied natural gas.

Despite having agreed a ceasefire in April, the US and Iran have exchanged intermittent fire, including two rounds of tit-for-tat strikes this week.

Israel is not involved in the talks which have been mostly mediated by Pakistan and are meant to lead to an extension of the ceasefire and the start of negotiations on key issues, including Iran's nuclear programme. For decades, Iran has been accused by Western countries of trying to build a nuclear weapon. It has denied the accusations saying its programme is for peaceful purposes - to generate electricity and for research purposes.

On Friday, Iran's Mehr news agency published what they described as terms of an agreement - a list of issues that Tehran has been publicly demanding and the US rejecting. US officials have also mentioned terms that Iran has consistently rejected.

The reported details included the lifting of a US naval blockade and "at least $300bn (£223bn)" to address the damage caused by the US and Israeli strikes on Iran.

The alleged contents of the deal said Iran wanted a final agreement to be endorsed by a UN Security Council resolution.

"The final agreement shall be limited to issues concerning the future of enriched materials and enrichment activities, sanctions relief, and the programme for rebuilding Iran's economy," it said.

It added that "final negotiations shall not begin until half of Iran's frozen assets have been released, Iranian oil sanctions have been suspended, and the naval blockade has been lifted".

The list of issues included typical Iranian demands, including the end of the Israeli conflict with Iran-backed Hezbollah in Lebanon.

From the US perspective, a senior administrative official told the BBC the Iran deal included the expectation that nuclear material was destroyed and removed and the nuclear program dismantled.

The official said that none of Iran's money would released until the Iranians had met US demands, the Strait of Hormuz would be opened and Iran would be expected not to fund terrorist groups - a reference to Hezbollah and other Iranian proxies across the Middle East.

US Vice-President JD Vance added his voice in a post on X, saying he had noticed "a couple of bizarre things in the reporting over the last few hours".

"Iranians are not receiving any cash, and no funds are being released for simply signing a deal or attending a meeting," Vance said.

He added that 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".

In his post on X, the Pakistani prime minister acknowledged "incessant misinformation campaign being waged by those who want to sabotage the peace deal" and said "peace has never been this close as it is now".

In a briefing call for reporters on Friday, a senior administration offcial said the odds of a deal being signed was between 80% to 85%.

The official said delays were because of complexities and "internal fractures" within Iran's government.

Throughout the day officials told reporters Iran will receive no immediate financial benefit after signing a Memorandum of Understanding.

Instead, the potential deal would be "performance-based" and see Tehran rewarded for complying with its agreed obligations.

"If they turn over the nuclear material as promised, they get something," the official said. "If they dismantle their nuclear programmes or nuclear facilities, they'll get something else."

"If they really commit to regional peace and stability, they'll get additional things on top of that," the official added.

The official downplayed Iranian reporting on the deal, arguing that it is aimed at a domestic audience and contains "inaccuracies".

Asked about the possibility of Israeli military operations in Lebanon potentially scuttling the deal, the official said that the agreement was broad and that the US is "quite confident" that Israel and Gulf Cooperation Council (GCC) countries "will get on board", while still having a right to self-defence.