A fragile agreement aimed at ending the war between the United States and Iran has encountered a major new obstacle after Tehran insisted that any final settlement must include an Israeli withdrawal from southern Lebanon — a demand Israel has already rejected and one that threatens to unravel the entire accord.

Although the proposed U.S.-Iran agreement has not been officially released, portions of what is believed to be a draft surfaced in media reports Tuesday. At the same time, conflicting statements from various officials have fueled uncertainty about the deal’s actual terms.

While Israel is not a signatory to the agreement, it remains deeply involved in the broader conflict after joining the United States in strikes against Iran on Feb. 28. Israel has also been engaged in combat against Hezbollah, the Iranian-backed terror organization in Lebanon, and currently controls significant territory there.

Iranian Foreign Minister Abbas Araghchi declared Tuesday that Israel’s continued military presence in southern Lebanon is incompatible with the proposed agreement.

“Without the withdrawal of Israeli forces from the territories they occupied during this war, the war has not fully come to an end,” Araghchi said.

That position directly contradicts statements from both Washington and Jerusalem. A U.S. official familiar with the framework of the agreement, speaking anonymously, said the deal contains no provision requiring Israeli forces to leave Lebanon. Meanwhile, Israeli Prime Minister Benjamin Netanyahu stated Monday that Israeli troops would remain there “as long as necessary.”

Efforts to negotiate an end to the conflict have repeatedly run into disputes of this kind. Previous disagreements resulted in an extended but fragile ceasefire that never evolved into a lasting peace agreement. The uncertainty has also left the Strait of Hormuz — one of the world’s most important energy corridors — effectively closed.

Meanwhile, Switzerland announced that a formal signing ceremony is expected to take place Friday at the Bürgenstock resort near Luzern. Swiss officials said the venue was jointly proposed by mediators from Pakistan and Qatar, along with representatives from the United States and Iran.

Pakistani officials have maintained that the framework agreement requires a halt to military operations across the region, including in Lebanon, a longstanding Iranian demand. Araghchi’s latest remarks, however, suggest that the issue remains unresolved.

The dispute places Israel in a difficult position as it seeks to continue weakening Hezbollah while avoiding a clash with a diplomatic initiative strongly backed by the United States. Israel entered southern Lebanon after Hezbollah launched missile attacks across the border during the opening days of the war. Since then, Israeli forces have expanded their operations dramatically and carried out strikes deep within Beirut.

Despite suffering significant setbacks, Hezbollah retains substantial military capabilities, raising ongoing questions about whether Israel’s campaign has achieved its long-term objectives.

As of Tuesday evening, Netanyahu had not yet reviewed the memorandum of understanding negotiated between Washington and Tehran, according to an individual familiar with the matter who spoke anonymously. A second source said Israeli officials had not requested a copy of the document from American negotiators.

Netanyahu’s office did not immediately respond to requests for comment. The White House likewise declined to say whether Israeli leaders had examined the agreement.

Israeli Ambassador to the United States Yechiel Leiter told NPR that Israel remains unaware of the deal’s full contents but argued that any linkage to Lebanon is “unnecessary and unhelpful.”

The situation has at times exposed tensions between Israeli leadership and President Trump. Speaking to reporters Tuesday, Trump criticized Israel’s conduct in Lebanon and expressed frustration with the ongoing campaign.

“not happy with the way Israel has handled themselves with Lebanon and with Hezbollah.”

“It just goes on forever,” he said of Israel’s strategy.

The fighting has taken a heavy toll. Israeli operations in Lebanon have reportedly killed nearly 4,000 people, including hundreds of civilians, and forced more than one million residents from their homes.

“Israel’s fighting Hezbollah too long, and too many people are being killed,” Trump said.

Separately, Israel and the Lebanese government have held direct talks under American mediation. Hezbollah has not participated in those discussions. Although several ceasefires have been announced through those channels, none have been fully implemented.

At the outset of negotiations, Lebanese officials sought to distance themselves from the broader U.S.-Iran talks, hoping to avoid the perception that Beirut was acting under Tehran’s influence. More recently, however, they have welcomed indications that any regional settlement could include a ceasefire on Lebanese territory.

Araghchi’s comments appear consistent with the understanding of two regional officials who have direct knowledge of the negotiations. According to those sources, the agreement would require Israel to withdraw from nearly all territory captured during the conflict, while allowing it to retain several strategic hilltop positions near the border.

Those officials also said Iran made Lebanon a central issue during the final phase of negotiations and insisted that it be incorporated into the accord.

The United Nations peacekeeping force in Lebanon, UNIFIL, reported that hostilities between Israel and Hezbollah continue, though at a far lower intensity than earlier in the conflict. U.N. spokesman Stephane Dujarric said Tuesday that exchanges of fire remain ongoing but at a “significantly reduced level.”

Lebanon remains just one of several unresolved issues hanging over the proposed agreement before its anticipated signing ceremony.

The accord is intended to halt a months-long conflict that has claimed thousands of lives throughout the Middle East, including senior figures within Iran’s ruling establishment, while also driving up the cost of fuel, food, and other essential goods around the world.

According to a senior U.S. official who briefed reporters Monday, the agreement calls for the “immediate” reopening of the Strait of Hormuz and the removal of the American naval blockade surrounding Iranian ports.

Pakistani officials involved in the negotiations similarly described a coordinated reopening of the strait and an end to U.S. maritime restrictions.

Following that step, the United States and Iran are expected to enter a 60-day negotiating period focused on Tehran’s nuclear program and the possible easing of sanctions, according to Pakistani officials familiar with the unpublished text.

The agreement also reportedly includes provisions that could unlock frozen Iranian assets and establish a $300 billion reconstruction fund for Iran if the regime satisfies specific requirements. Senior U.S. officials discussed those possibilities Monday, though Trump later emphasized that the United States would not “invest” funds in Iran.

Regional officials said the release of frozen assets would be tied directly to Iran’s compliance with the agreement. They added that Gulf Arab nations have committed to investing billions of dollars in Iran’s economy if the accord moves forward.

Questions surrounding Iran’s nuclear activities remain among the most contentious aspects of the deal. U.S. officials have yet to explain how compliance would be verified, who would oversee inspections, or how highly enriched uranium stored beneath damaged nuclear facilities would be removed or destroyed.

According to regional sources, Iran has signaled a willingness to discuss options to “dilute or remove” the uranium. Whether Tehran ultimately agrees to such measures remains uncertain, particularly given resistance from hard-line factions within the country. Vice President JD Vance said Monday that international nuclear inspectors would return to Iran as the agreement advances.

Trump also indicated he would be willing to submit the developing agreement to Congress for review.

Speaking during the Group of Seven summit in the French Alps, Trump said, “I like the idea, send it to Congress please.”

He added, “I mean who wouldn’t approve it.”

Republican lawmakers have urged the administration to provide additional details about the agreement, with some expressing doubts that the proposed framework will be sufficient to prevent Iran from eventually obtaining a nuclear weapon.