Prime Minister Shehbaz Sharif said the "final text" of a potential agreement has been prepared and that Islamabad is now working with both sides to complete the remaining stages of the process. The developing framework has been described in some reports as the "Islamabad Memorandum of Understanding" or the "Islamabad Agreement."
In his latest remarks, the prime minister said the two sides are now extremely close to finalisation, adding that there is a strong possibility the agreement could be concluded within the next 24 hours. He also indicated that Pakistan would be fully prepared to sign the deal once formal approval is granted.
Despite the optimistic tone, officials and analysts caution that the process has not yet crossed the finish line. While major principles are believed to have been agreed upon, political approval and technical details remain under discussion.
What Is Reportedly Included in the Agreement?
According to reports, the proposed framework goes beyond a simple ceasefire arrangement.
Key elements reportedly under discussion include the reopening of the Strait of Hormuz, the easing of maritime restrictions affecting Iranian ports, the phased release of frozen Iranian assets, limited sanctions relief, and a separate round of negotiations focused on Iran s nuclear programme.
US officials have reportedly described the arrangement as a "performance-based" agreement, meaning economic incentives would be tied to Iran s compliance with specific commitments.
One of the most sensitive issues remains the future of Iran s highly enriched uranium stockpile. Washington is said to favour its removal, transfer or elimination, while Tehran reportedly prefers a diluted or modified arrangement rather than complete disposal.
That disagreement continues to be viewed as one of the most significant hurdles to a final deal.
Washington Signals Support, but Conditions Remain
US President Donald Trump has suggested in recent remarks that negotiations have made substantial progress.
He referred to a "strong memorandum of understanding" regarding Iran, while also describing parts of the process as conceptual and subject to further refinement.
Trump has rejected some of the details circulating in media reports, arguing that leaked information does not accurately reflect the negotiated text.
The White House and Vice President JD Vance have similarly emphasised that any economic benefits for Iran would depend on fulfilment of agreed obligations.
The messaging from Washington suggests that the administration views the arrangement not as a concession, but as a conditional agreement tied to verifiable commitments.
Iran Maintains a Cautious Approach
Iranian officials have also signalled progress while stopping short of declaring a final breakthrough.
Foreign Minister Abbas Araghchi recently indicated that an agreement may be closer than at any previous stage, but Tehran has stressed that internal consultations are still ongoing.
Iran continues to place significant importance on sanctions relief, access to frozen assets and the reduction of external military pressure.
Analysts say the ultimate success of any agreement will depend less on diplomatic language and more on how both sides implement their commitments once a deal is signed.
Why the Strait of Hormuz Matters
The Strait of Hormuz remains one of the world s most strategically important maritime corridors, carrying a significant share of global energy shipments.
Any disruption to traffic through the waterway has immediate implications for oil prices, shipping costs and global supply chains.
If the proposed agreement succeeds in restoring confidence and ensuring uninterrupted navigation, it could ease pressure on international energy markets and reduce volatility across the broader global economy.
What Happens Next?
Should the agreement move forward, the first phase is expected to focus on maintaining a durable ceasefire, restoring maritime access and providing limited economic relief measures.
More difficult issues including sanctions policy, nuclear restrictions and the future of enriched uranium stockpiles would likely be addressed through follow-up negotiations.
Diplomatic observers note that the coming hours and days could prove decisive. Even with significant progress reported, unresolved differences remain capable of delaying or derailing the process.
A Deal with Global Consequences
The significance of any US-Iran agreement extends far beyond the two countries.
A successful breakthrough could influence energy markets, regional security, international trade routes and investor confidence across the Middle East and beyond.
For now, Islamabad is portraying the framework as nearing completion, Washington continues to describe it as a conditional arrangement, and Tehran maintains that discussions are advanced but not yet final.
Those differing perspectives underline the current reality: the agreement may be closer than ever, but its ultimate success will depend on the final signatures, implementation mechanisms and the willingness of all parties to turn diplomacy into lasting stability.
