Morning update

Good morning Middle East Eye readers,

The United States and Iran appear closer than ever to formalising a peace agreement, but conflicting statements over timing underscore that the deal has not yet been signed. While Washington says a breakthrough could come within hours, Tehran insists final approval is still pending.

Meanwhile, fighting continues on the Lebanon front despite growing expectations of a regional de-escalation.

Here are the latest updates: 

President Donald Trump said a US-Iran agreement could be signed on Sunday and claimed it would permanently block Tehran from obtaining nuclear weapons.

Iran’s foreign ministry said the chances of finalising the memorandum of understanding in the coming days are high, but stopped short of confirming a Sunday signing.

Pakistan, which has mediated the talks, said it is preparing an electronic signing ceremony for the agreement via video link.

Washington said a completed deal would reopen the Strait of Hormuz and help restore normal maritime traffic through the strategic waterway.

Iranian President Masoud Pezeshkian said the war had failed to achieve its objectives and described the conflict as a source of national unity.

Israeli media reported that the military withdrawal from southern Lebanon is “not currently on the table”. 

Israeli strikes continued across southern Lebanon, including attacks near Nabatieh and Jezzine, despite reports of progress in negotiations.

Hezbollah said it targeted an Israeli military position near Hula with drones and later released footage it said showed the downing of an Israeli drone over the Bekaa Valley.

Funeral ceremonies for Iran’s late Supreme Leader Ali Khamenei are scheduled to begin on 4 July in Tehran, with burial planned for 9 July in Mashhad.