A proposed peace deal between Tehran and Washington to end the US-Israel war on Iran has been "largely negotiated," as claimed by Donald Trump on Saturday following calls with Pakistan, Gulf allies, and Israel. However, Iranian officials stated on Sunday that the agreement still requires approval from Iran’s supreme leader, Motjaba Khamenei, and the supreme national security council. They further clarified that one or two clauses need to be satisfactorily resolved before the memorandum of understanding can proceed to ratification, a point conveyed to Pakistani mediators.

The Iranian government, led by President Masoud Pezeshkian, appeared to be in a jubilant mood, anticipating a significant victory over its adversaries, the US and Israel. Pezeshkian emphasized that national "solidarity and empathy" had ensured the country's stability. The deal, mediated by Pakistan, is reportedly designed to offer Iran substantial incentives, including sanctions relief and the unfreezing of up to $20 billion in assets, with at least $12 billion located in Qatar. In return, Iran would agree to reopen the Strait of Hormuz, clear any deployed mines, and commit to negotiating its nuclear program over 60 days, starting June 5 in Pakistan. Additionally, Iran would regain the ability to freely sell oil and petrochemicals during the negotiation period without the threat of sanctions, and the US would lift its counter-blockade on Iranian ports.

A critical aspect of the proposed deal is a cessation of hostilities on all fronts, requiring both the US and Iran, along with their allies, to cease fighting, and for Israel to end its offensive in Lebanon. Trump sought to reassure Israeli Prime Minister Benjamin Netanyahu, who initially advocated for the war in February, regarding the ceasefire's terms. Netanyahu, though concerned about the postponement of the nuclear issue, reportedly has limited options other than to accept Trump’s decision to end a domestically unpopular war that has been economically crippling due to inflation and supply shortages.

However, key points of contention and differing interpretations remain. The governance of the Strait of Hormuz is a major point of dispute; while the US secretary of state, Marco Rubio, suggested the deal could achieve a "completely open" strait "without tolls," Iran's Fars news agency, close to the Islamic Revolutionary Guard Corps, asserted that the strait would remain under Iranian control, with its management and passage permits being Iran's exclusive discretion. The Iranian foreign ministry spokesperson reiterated this, stating that the strait's future governance is a bilateral matter between Iran and Oman, excluding US involvement.

The nuclear issue also presents complexities. Iran stated it has only committed to negotiate nuclear-related issues in talks lasting 30 days with an optional 30-day extension, without making any commitments on the outcome. This effectively reverts the US position to a pre-war stance. Furthermore, a senior Iranian source told Reuters that Tehran has not agreed to surrender its highly enriched uranium (HEU) stockpile, contradicting reports from the NY Times. There has also been little mention of Iran's ballistic missile program or its support for regional allies like Hezbollah and the Houthis.

The potential deal has elicited strong reactions. Gulf states, along with Turkish President Recep Tayyip Erdoğan and Egyptian President Abdel Fattah el-Sisi, had lobbied Trump against a bombing campaign in Iran, fearing reprisals and acknowledging it would not topple the entrenched regime. In the US, Republican hawks, who have long advocated for military action against Iran and criticized the 2015 JCPOA, expressed dismay. Mike Pompeo, former CIA director and secretary of state under Trump, denounced the current agreement as too similar to the Obama-era deal, calling it a boon to Iran's Islamic Revolutionary Guard Corps and likening it to the "Wendy Sherman-Robert Malley-Ben Rhodes playbook."

Conversely, Robert Malley, one of Obama's chief negotiators, expressed a willingness to accept the deal if it effectively ends the "unlawful, unjustifiable war," the "senseless loss of life and destruction," and the "cascading global economic fallout." White House director of communications, Steven Cheung, strongly defended the deal against Pompeo's criticism. Republican senators Roger Wicker and Ted Cruz voiced concerns that a 60-day ceasefire based on Iran's good faith would be a "disaster," undoing any gains from "Operation Epic Fury" and potentially allowing an Islamist-run Iran to receive billions, enrich uranium, and control Hormuz. However, Ben Rhodes argued that "Operation Epic Fury" had only empowered the IRGC and given them control of the Strait of Hormuz.