US and Iran say a deal to end the war is within reach, with a final text agreed but key steps still pending.

Iran and the United States appeared to edge closer to a deal to end the war on Friday, with officials saying an agreement may soon be within reach.

Iranian Foreign Minister Abbas Araghchi said a memorandum of understanding with Washington had “never been closer” and urged the media not to speculate about its contents before it is finalised. US President Donald Trump later reposted Araghchi’s remarks after earlier dismissing reports about the deal as “fake news”.

Pakistan’s Prime Minister Shehbaz Sharif, whose country has helped mediate the talks, said a “final, agreed-upon text” had been drawn up, although some “next steps” still needed to be completed.

Here is what has happened:

In Iran

• Ceasefire in Lebanon a ‘litmus test’ for US-Iran deal: Reporting from Tehran, Al Jazeera’s Mohamed Vall said Araghchi acknowledged some disagreements within Iran’s leadership over the proposed memorandum of understanding, but described them as manageable and said an agreement could be reached soon. The first phase of the deal would include a ceasefire across all fronts, including Lebanon, the lifting of the Strait of Hormuz blockade and a mechanism to unfreeze Iranian assets. Vall said securing and maintaining a ceasefire in Lebanon would be the key test of whether the agreement can succeed.
• Iranian official claims $24bn in assets could be unfrozen: State media, citing senior official Mohsen Rezaei, reported that Trump had agreed to release $24bn in frozen Iranian assets but has not publicly acknowledged it. Trump has previously dismissed Iranian reports about the proposed deal as “fake news”.

In the US

• Deal signing with Iran likely days away despite Trump’s tougher tone: Al Jazeera’s Alan Fisher reported that Trump has accused Iran of leaking “fake” and inaccurate details of the proposed agreement, describing Tehran as “very dishonourable” and urging it to “get their act together” quickly. Despite the sharper rhetoric, US officials, including Vice President JD Vance, said progress is being made and that Iran could receive incentives if it meets agreed “benchmarks”.
• US says it intercepted Iranian drones over Strait of Hormuz: CENTCOM said US forces shot down multiple Iranian attack drones that were allegedly targeting commercial ships transiting the Strait of Hormuz, adding that maritime traffic through the vital trade route remained uninterrupted.
• Trump seeking an ‘off-ramp’ from the Iran war, analyst says: Reporting from Washington, DC, Mike Hanna said Trump’s shifting rhetoric underscores his desire to secure a deal with Iran and move past the conflict. He said the agreement could provide the president with a way to avoid the political and economic costs of a prolonged war.

In Lebanon

• No sign of a slowdown in Lebanon: Al Jazeera’s Heidi Pett reported that Israel renewed attacks on towns in the Tyre and Nabatieh districts and issued a “wide-ranging forced displacement order” affecting more than 20 communities in Nabatieh and Jezzine. The escalation suggests “we’re not seeing any slowdown” in the fighting, despite Iranian assurances that Lebanon would be included in a proposed ceasefire agreement, she said.
• Former US diplomat says Lebanon remains an important test for any deal: Henry Ensher told Al Jazeera that Iran has long viewed Lebanon as an “instrument” of its foreign policy and cautioned that any Israeli withdrawal from southern Lebanon would be “a process”. He warned there are still “lots of ways in which things can go wrong”, stressing that any agreement between Washington and Tehran would be “an agreement to start a process at most”, rather than a final settlement.