The United States has agreed not to impose any new sanctions on Iran until a final agreement is negotiated, according to a senior Iranian official cited by Reuters.
The proposed memorandum of understanding (MoU) is expected to serve as a framework for broader negotiations between Washington and Tehran on sanctions relief, Iran's nuclear programme, and regional security issues.
According to Reuters, the draft agreement covers several key areas, including Iran's nuclear activities, the release of frozen Iranian assets, sanctions relief, and maritime security in the Strait of Hormuz.
Under the draft, Iran would immediately reopen the Strait of Hormuz to commercial shipping, while the United States would lift what Tehran describes as a naval blockade on Iranian ports.
The proposal also includes a US commitment to refrain from imposing new sanctions, provide temporary waivers on existing oil sanctions, and facilitate the release of $25 billion in frozen Iranian assets.
In return, Iran would maintain the status quo in its nuclear programme and commit not to pursue nuclear weapons.
According to Al Arabiya, citing sources, US and Iranian delegations are expected to hold a virtual meeting on Sunday to sign the memorandum in the presence of mediators Pakistan and Qatar.
The report said US Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf are expected to participate in the online signing ceremony.
Al Arabiya also reported that commercial shipping through the Strait of Hormuz would resume immediately after the agreement is signed and that vessels would be allowed to transit without fees. Restrictions on Iranian ports are also expected to be eased.
The memorandum is intended as an interim framework, with both sides expected to negotiate a more comprehensive agreement during a 60-day period following its acceptance.
Neither Washington nor Tehran has officially confirmed the signing schedule.