Geneva, in Switzerland, is being floated as a potential location for the signing as soon as Sunday | Photo Credit: Dado Ruvic

The US and Iran are edging closer to signing an agreement to reopen the Strait of Hormuz as the Group of Seven world leaders are set to meet next week, according to senior officials.

A senior Iranian official indicated overnight that a deal is likely, said a G7 official, who asked not to be named discussing sensitive matters. Another G7 official said it will likely take the form of a memorandum of understanding, rather than a final deal.

This year’s summit takes place in Evian, in the French Alps, from June 15 to June 17. Geneva, in Switzerland, is nearby and being floated as a potential location for the signing as soon as Sunday, according to people familiar with the plans.

The official cautioned that Iran has yet to confirm it is ready for a signing ceremony and communications between its government and the US have been slow since the war began in February.  

A second G7 official confirmed that there were signs that the US and Iran were close to signing but also warned that previous diplomatic progress has not materialised.

An Iranian foreign ministry spokesman said “we have not yet reached a conclusion on this matter.” He signalled there had been progress toward ending a war that’s caused chaos across West Asia and sent energy prices surging.

Another diplomat separately briefed on the matter said Iranian negotiators had agreed to a deal. It’s unclear if it’s been signed off by Supreme Leader Mojtaba Khamenei, who has the final say on major foreign policy and military matters, and has been in hiding since the war erupted with US and Israeli strikes on Iran in late February.

Oil prices fell and equities jumped late on Thursday when Trump said he had cancelled imminent air strikes on Iran and claimed again that an agreement — to extend the US-Iran truce by 60 days as well as for Tehran to reopen the strait and Washington to end a blockade of Iranian ports — was all but done.

Energy prices dropped further on Friday.

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Published on June 12, 2026