United States President Donald Trump says a possible agreement between Washington and Tehran to end months of war is now “largely negotiated”, raising hopes that tensions in the region could ease after a flurry of diplomatic overtures involving multiple countries.

The proposed memorandum of understanding (MoU) reportedly includes reopening the Strait of Hormuz, a vital shipping lane for crude oil and gas, as well as talks aimed at formally ending the US-Israel war on Iran.

But despite optimistic statements from Trump, Iranian officials say major disagreements remain, especially over the status of the Strait of Hormuz, Iran’s nuclear programme and conflicts involving Tehran-backed groups in Lebanon.

So, what has Trump said, what is the pushback from Iran, and what are the key sticking points?

What did Trump say?

The president said on his social media platform Truth Social on Saturday that an agreement between the US, Iran and several other countries in the region had been “largely negotiated” and that final details would be announced soon.

“An Agreement has been largely negotiated, subject to finalization between the United States of America, the Islamic Republic of Iran, and the various other Countries,” Trump wrote on Truth Social.

He said the proposed agreement would include reopening the Strait of Hormuz, which has remained effectively closed to most shipping since the US-Israel war on Iran began on February 28.

Trump described the proposal as a “Memorandum of Understanding pertaining to PEACE” and said the discussions involved Saudi Arabia, the United Arab Emirates, Qatar, Pakistan, Turkiye, Egypt, Jordan and Bahrain.

Trump said he also spoke to Israeli Prime Minister Benjamin Netanyahu, and it “went very well”.

Sources told the Reuters news agency the proposed framework would unfold in stages: formally ending the war, resolving the Strait of Hormuz crisis, and opening a 30-day negotiation window for a broader agreement on sustained peace, which could be extended.

Axios reported late on Saturday that Washington and Tehran were close to a deal, which it said would include no tolls on ships transiting the strait, while Iran would be able to freely sell oil.

In exchange, the US would lift its blockade on Iranian ports and waive some sanctions on Iranian oil, the US news outlet said, citing a US official. The draft agreement also includes commitments from Iran never to pursue nuclear weapons, Axios said.

Also on Saturday, the New York Times reported that the draft agreement includes an “apparent commitment” by Iran to surrender its stockpile of highly enriched uranium.

The report, citing two unnamed US officials, said details of how Iran would transfer or relinquish the material would be addressed at a later stage of the negotiations.

What has Iran said?

Iranian officials have confirmed negotiations are ongoing and that some headway has been made. However, they have pushed back against some of Trump’s claims.

The MoU between Tehran and Washington included a roadmap to ⁠end the war on all fronts, Iran’s semi-official Tasnim news agency reported, with the US waiving ‌sanctions on Iranian oil during negotiations.

Iran has not ⁠yet accepted any ⁠actions on its nuclear programme, Tasnim added, saying ⁠the potential agreement allocates ⁠30 days for procedures related to the Strait of Hormuz ‌and 60 days for ‌nuclear ‌talks.

Meanwhile, Iranian state-linked media Fars news agency reported early on Sunday that the agreement would allow Iran to manage the Strait of Hormuz and that Trump’s assertion on the key waterway, through which almost a fifth of the world’s oil shipping once passed, was “inconsistent with ⁠reality”.

On Saturday, Iran’s Ministry of Foreign Affairs spokesperson Esmaeil Baghaei described the latest proposal as a “framework agreement” or MoU that would first establish broad principles before details are negotiated over 30 to 60 days.

“The trend this week has been towards a reduction in disputes, but there are still issues that need to be discussed through mediators. We will have to wait and see where the situation ends in the next three or four days,” Baghaei said.

He told Iran’s IRNA news agency that Tehran’s immediate priority was ending the war, stopping any future US attacks and the fighting in Lebanon.

What are the main sticking points?

Strait of Hormuz

A major dispute between Tehran and Washington is over the Strait of Hormuz, a critical global shipping route linking the Gulf to the Arabian Sea. One-fifth of the world’s oil and liquefied natural gas (LNG) supplies were shipped through the strait before the war began.

Iran insists on sovereignty over the waterway, which lies within the territorial waters of Iran and Oman and does not fall into international waters. It has also floated the idea of levying tolls while the US has demanded full freedom of navigation.

Iran, in effect, closed the strait by forbidding transits after the war began, attacking ships and reportedly laying sea mines.

Days after the ceasefire came into effect on April 8, the US implemented a blockade of its own. Its navy has been blocking Iranian ports to pressure Tehran to reopen the vital waterway, adding another obstacle to the talks.

Iran’s nuclear programme

Another main issue is Iran’s nuclear programme, especially its stockpile of enriched uranium.

The US and Israel are demanding that Iran halt uranium enrichment entirely, accusing it of seeking to develop a nuclear weapon, without publicly presenting evidence to support the claim.

Iran maintains that its nuclear programme is solely for civilian use. Tehran is also a signatory to the 1970 Treaty on the Non-Proliferation of Nuclear Weapons (NPT).

In 2015, the US joined the Joint Comprehensive Plan of Action (JCPOA) under then-President Barack Obama. Under the agreement, Iran agreed to cap uranium enrichment at 3.67 percent — far below weapons-grade levels — and allow inspections by the International Atomic Energy Agency (IAEA) to verify that it was not pursuing nuclear weapons. In exchange, international sanctions on Iran were eased.

However, in 2018, during his first term in office, Trump withdrew the US from the JCPOA, despite the IAEA stating that Iran had been complying with the agreement at the time.

In March 2025, Tulsi Gabbard, the incumbent director of national intelligence, told Congress that agencies are continuing “to assess that Iran is not building a nuclear weapon”.

The US and Israel justified the war stating that Iran was on the verge of making nuclear weapons.

Is a deal achievable?

Iran expert and cofounder of the Quincy Institute, Trita Parsi, says although the MoU agreed between Iran and the US did not include major substantive concessions from either side, it was at least a sign of willingness to move towards a broader deal.

“The truth assessment of who blinked first will not come until we see what the final outcome is, after we spend another 30 days, and hopefully it won’t be longer than that until we get to a final agreement on the nuclear issue,” Parsi told Al Jazeera.

He added that it was not clear if Iran would directly be given reparations for the conflict, a key demand, but said if sanctions are lifted and the nuclear issue addressed, “it would likely be a bigger deal than the Obama agreement in 2015”.

Other analysts have pointed out that the acquiescence of Israel will be a key factor in deciding whether a deal can be reached.

Academic Setareh Sadeqi said a message was sent to Trump that there is a clear regional desire to reach an agreement and make peace, but that the messaging has at times been contradictory.

“We [are] seeing both parties say they are very close but very far, and that the military option is still on the table,” Sadeqi, assistant professor of world studies at the University of Tehran, told Al Jazeera.

She said the challenge for Trump is whether he can defy Israel’s interests and push the deal through, with Israel reportedly looking to scupper any agreement.