US, Iran could sign Hormuz memorandum Sunday in Geneva

The US and Iran are close to signing a memorandum of understanding to reopen the Strait of Hormuz, with a possible signing ceremony in Geneva as early as Sunday, Bloomberg reported Friday, citing senior officials.

The potential arrangement comes as Group of Seven (G7) leaders are set to gather in Evian, France, on June 15-17.

A senior Iranian official indicated that a deal was likely, the report said, citing a G7 official who spoke on condition of anonymity because of the sensitivity of the matter.

Another G7 official said the arrangement would likely take the form of a memorandum of understanding rather than a final agreement.

Officials cautioned, however, that Iran has not yet confirmed it is ready for a signing ceremony and that communications between Tehran and Washington have been slow since the war began in February.

An Iranian Foreign Ministry spokesman said Tehran had "not yet reached a conclusion on this matter," while suggesting progress toward ending the conflict, which has disrupted the Middle East and pushed energy prices higher.

The report also cited a diplomat briefed on the matter as saying that Iranian negotiators had agreed to a deal, though it remained unclear whether it had been approved by Supreme Leader Mojtaba Khamenei, who has final authority over major foreign policy and military decisions.

US President Donald Trump said Thursday that he had canceled imminent airstrikes on Iran and claimed that an agreement was nearly complete. Oil prices fell and equities rose after Trump's remarks, while energy prices dropped further Friday.

According to Bloomberg, the potential deal would extend the US-Iran truce by 60 days, reopen the Strait of Hormuz and see Washington end a blockade of Iranian ports.