President Donald Trump called off planned missile strikes on Iran on June 12, 2024, after urgent appeals from Gulf leaders, while a draft deal released by Iran's Mehr news agency outlined a permanent cease‑fire and a 60‑day nuclear talks window in exchange for $24 billion in blocked funds. The announcement coincides with the upcoming G7 summit in Évian‑les‑Bains, raising hopes for a broader regional de‑escalation.

Draft Deal Calls for $24 Billion Release and Full Sanctions Lift

The Mehr‑published draft stipulates that the United States unblock $24 billion of Iranian assets, with half of the sum available before formal negotiations begin, and that all primary and secondary sanctions be removed. According to Iranian state media, the nuclear issue would be tackled during a 60‑day negotiation period, while Tehran insists on retaining control of the Strait of Hormuz.

Trump’s Reversal After Calls from Qatar, UAE and Pakistan

Reports cited by Politico indicate that Qatari Emir Tamim bin Hamad Al Thani, UAE President Mohamed bin Zayed Al Nahyan, and Pakistani defence chief Asim Munir urged Trump to reconsider the strikes, promising a preliminary deal.. Trump confirmed the shift on Truth Social, saying discussions had reached Iran’s highest levels and that “key points had been approved by all parties,” including Israel, Saudi Arabia and several other regional actors.

Mixed Signals From Tehran and Israel Cast Doubt on Deal Finality

Iranian foreign ministry spokesperson Esmaeil Baghaei acknowledged progress but warned that Tehran “has not yet reached a final conclusion on an agreement.” An Israeli official told Channel 12 that “we are not aware of any agreement being reached,” highlighting the divergent narratives surrounding the draft.

Oil Markets React to Prospects of Strait Re‑Opening

Brent crude fell 5 percent to $85.86 per barrel and WTI dropped to $83.32,as traders priced in the possibility of the Strait of Hormuz reopening and a broader end to hostilities. According to market reports, the draft’s focus on unblocking the strait helped drive the price decline .

Open Questions: Timing of a Formal MOU and Iran’s Red Lines

Key uncertainties remain: whether the G7 will formalise the draft as a memorandum of understanding rather than a binding treaty, and how Tehran’s insistence on retaining Hormuz control will be reconciled with U.S. strategic interests.