A memorandum of understanding that the US and Iran are on the verge of signing calls for the immediate reopening of the Strait of Hormuz, a 60-day ceasefire extension, and a framework for addressing Iran's nuclear programme.
Meanwhile, several contentious issues remain unresolved, Axios reported Thursday, citing a diplomat from one of the mediating countries and a US official.
The deal, mediated jointly by Qatar and Pakistan, would be called "the Islamabad Agreement", Axios said.
Earlier on the day, US President Donald Trump said that a peace deal with Iran could be signed in Europe as early as this weekend with describing the broader agreement as a "great settlement".
The Ceasefire And The Strait
Under the MOU, the Strait of Hormuz would reopen immediately without tolls, with shipping volumes returning to pre-war levels within 30 days.
In return, the US blockade would also be lifted. The agreement would extend the ceasefire, including in Lebanon, for 60 days, during which nuclear negotiations would be held.
The Nuclear Framework
Iran would commit to never acquiring a nuclear weapon and to resolving the standoff over its enriched uranium stockpile.
A senior US official told Axios that one option under consideration was down-blending Iran's highly enriched uranium inside the country under UN supervision. However, any concrete steps on the nuclear programme would only occur if a second, more detailed accord is reached, which Axios described as an uncertain prospect.
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Sanctions Relief
Iran would initially receive temporary sanctions waivers allowing it to sell oil for 60 days following the strait's reopening.
Further relief would be tied to compliance and demonstrated good faith in subsequent negotiations. "There is no set date for sanctions relief and it will be tied to the implementation of the deal," the mediating country's diplomat told Axios.
The Unresolved Billions
The thorniest outstanding issue concerns billions in Iranian funds frozen overseas.
ALSO READ: US-Iran Deal Around The Corner? Trump Touts 'Great Settlement'; Tehran Says No Final Decision Made
Iran has insisted on receiving some money immediately upon signing, while the US wants disbursement in tranches based on compliance. Axios reported that a US source outside the administration raised concern the frozen funds issue may be addressed in a secret side agreement, a possibility a US official denied to the outlet.
The tentative text was agreed Wednesday night after hours of negotiations between Qatari mediator Ali Al-Thawadi and Iranian Foreign Minister Abbas Araghchi, with Trump envoys Steve Witkoff and Jared Kushner on the phone throughout, Axios said.
As of Thursday evening, the deal had been approved on the Iranian side at high levels but likely not by Supreme Leader Mojtaba Khamenei, two sources with knowledge told Axios.
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