President Donald Trump is reportedly nearing a major agreement with Iran that could temporarily halt escalating tensions in the region while opening the door to broader negotiations over Tehran’s nuclear ambitions.

According to multiple reports, the proposed framework would begin with a 60 day memorandum of understanding between the United States and Iran. During that period, Iran would reopen the Strait of Hormuz and remove naval mines that have disrupted international shipping lanes, while the U.S. would ease certain sanctions and allow Iran to resume oil exports.

The agreement has not yet been finalized and officials caution it could still collapse at the last minute. However, both American and regional mediators are said to be pushing for a formal announcement as early as Sunday.

Sources familiar with the negotiations say the deal is built around what Trump officials describe as “relief for performance,” meaning Iran would only receive additional economic benefits if it follows through on its commitments.

As part of the draft understanding, Iran would reportedly pledge not to pursue nuclear weapons and enter negotiations regarding its uranium enrichment program and stockpiles of highly enriched uranium. American officials insist any permanent sanctions relief would depend on verifiable compliance.

The proposed arrangement would also impact the wider region. The draft reportedly includes terms aimed at ending the ongoing conflict between Israel and Hezbollah in Lebanon. Israeli Prime Minister Benjamin Netanyahu is said to have expressed concerns during a phone conversation with President Trump, particularly over security implications and Hezbollah’s future behavior.

One U.S. official reportedly emphasized that Israel would still retain the right to act militarily if Hezbollah attempted to rearm or launch attacks during the ceasefire period.

Trump reportedly consulted several Arab and Muslim leaders over the weekend, with sources saying many expressed support for the initiative.

The White House believes Iran’s worsening economic crisis could pressure Tehran into making broader concessions in exchange for sanctions relief and access to frozen funds.

Administration officials say President Trump remains open to dramatically improving relations with Iran if Tehran abandons its nuclear weapons ambitions, arguing that Iran’s economic potential could be “huge” under a new relationship with the United States.

The negotiations remain fluid and no final agreement has yet been signed.