Iran-US Deal Saga Unfolds: From Funding Rejection to Truce Talks and Billion-Dollar Payments

The United States military, under the Trump administration, had meticulously crafted plans for a potential ground operation within Iran aimed at seizing highly enriched uranium. This critical development necessitated an urgent, secret visit by General Dan Caine, then chairman of the Joint Chiefs of Staff, to Central Command headquarters in Florida on May 19. Rushing from a NATO meeting in Brussels, Caine received in-person briefings on the high-risk plan, underscoring the gravity and immediacy of the situation. President Donald Trump, however, ultimately decided to pause the operation after receiving stark warnings regarding potential severe Iranian retaliation, the likelihood of prolonging the conflict, and the adverse impact on the global economy. Concerns over significant US casualties also played a pivotal role in his decision.

Amidst these military considerations, diplomatic efforts and internal Iranian dissent painted a complex picture of US-Iran relations. The IRGC-affiliated Fars News agency launched a scathing critique of Iranian Foreign Minister Abbas Araghchi, accusing him of an “ambiguous” response to President Trump’s dismissal of Iranian media reports concerning the terms of a possible US-Iran memorandum of understanding (MOU). Fars News argued that Araghchi’s English-language post on X, which stated the “Islamabad Memorandum of Understanding had never been closer” and urged media to avoid speculation, failed to directly refute Trump’s assertion that the leaked Iranian version of the deal was false. The outlet suggested that Araghchi’s call for media restraint could be interpreted as an indirect confirmation of Trump’s accusations of inaccuracies, further highlighting that Trump himself reposted Araghchi’s message as support for his own narrative. Fars questioned whether Araghchi’s diplomatic language signaled a retreat or an alignment with Trump’s claims, especially after Trump alleged private apologies from Iranian officials, demanding clarity and firmness from Iran in response to US accusations.

Further complicating the diplomatic landscape, hardline Iranian lawmaker Mahmoud Nabavian vehemently criticized the emerging US-Iran agreement, asserting that its latest text was more detrimental than earlier iterations and demanded greater Iranian concessions. Nabavian stated, “After seeing the text of the agreement, I must say that compared with the two previous versions, it is more damaging and Iran’s retreats have also increased.” He amplified his criticism by sharing a screenshot of President Trump reposting Araghchi’s remarks about the Islamabad MOU, using it to denounce Iranian officials involved in the negotiations. Nabavian unequivocally dismissed the potential agreement, labeling it “pure loss,” a phrase consistently used by hardliners to condemn the 2015 nuclear deal, known as the JCPOA.

Concurrently, financial arrangements emerged as another dimension of the intricate regional dynamics. Reports indicated that the United Arab Emirates (UAE) had already delivered approximately $3 billion to Iran and committed to releasing billions more. This arrangement was reportedly designed to de-escalate tensions and halt Iranian attacks on the Persian Gulf state. Regional sources cited by Reuters suggested the UAE agreed to release a total of $10 billion, while other sources indicated the total funds involved could be as high as $20 billion, in exchange for Iran ceasing missile and drone attacks. The precise origin of these funds—whether from UAE money or previously blocked Iranian accounts—remained unclear, though a UAE official affirmed Abu Dhabi’s commitment to reducing tensions and fostering regional stability. Iran’s last direct attack on the UAE was recorded on May 4, targeting Fujairah port.

From an international perspective, a senior US administration official expressed confidence that Israel would ultimately support a broad regional peace agreement with Iran once it was privy to the full terms. These terms were expected to include provisions for the destruction and removal of Iran’s enriched material. The official acknowledged the deep mistrust surrounding the agreement but characterized internal dissent, even within Iran, as “quite minimal,” noting that “some Iranians don’t love this deal.” The official reiterated the broad scope of the agreement and confirmed that the parties had achieved specificity on the critical issue of enriched material.

In a counterpoint to these international views, Iranian Foreign Minister Abbas Araghchi stated that Israel was actively working to sabotage the pending memorandum of understanding between Tehran and Washington. Speaking on Iranian state television, Araghchi revealed that the MOU comprised 14 articles and, notably, had not yet been signed. He outlined the first phase of the agreement as encompassing an end to the war in Iran and Lebanon, alongside mutual commitments from Tehran and Washington to refrain from interfering in each other’s internal affairs. Araghchi confirmed that nuclear issues had been deferred to a second phase of negotiations, projected to last 60 days. He emphatically declared Iran’s unwavering support for “Lebanon’s Hezbollah,” stating the group fought alongside Iran and the Islamic Republic “will never leave Hezbollah alone.” He also maintained that none of the circulating texts of the agreement were currently valid and that Iran did not confirm any of them.

Bringing a sense of resolution to the ongoing diplomatic efforts, Pakistan’s Prime Minister announced on Friday that a final agreed text of a peace deal between Iran and the United States had been reached. He affirmed that Islamabad was working in close coordination with both sides to finalize the subsequent steps. The Pakistani premier emphasized that persistent mediation efforts had successfully brought the parties closer to an agreement, despite what he described as an “incessant misinformation campaign” by those seeking to undermine the process. He concluded by confidently stating, “Setting aside the noise, we can confirm that a final, agreed upon text of the peace deal has been reached,” and reiterated that “Peace has never been this close as it is now.”