Iran TV Obtains 'Initial Unofficial' Draft of US Deal | BBC News

Why It Matters

The dispute over a Hormuz reopening directly affects global oil supply, inflating energy costs and heightening market uncertainty, while the diplomatic impasse signals continued geopolitical risk for businesses operating in the region.

Key Takeaways

• Iran TV claims draft deal would reopen Strait of Hormuz.
• White House calls the Iranian report a complete fabrication.
• Trump says negotiations are on fumes, no deal reached yet.
• Pakistan mediates indirect talks between Tehran and Washington.
• Energy markets react: oil falls, UK bills rise 13%.

Summary

Iranian state television announced that it had received an initial unofficial draft of a memorandum of understanding with the United States that would reopen the Strait of Hormuz and pull American forces out of the region. The White House immediately dismissed the report as a fabrication, and President Trump told his cabinet that no agreement had been reached.

According to the draft, Tehran would restore commercial shipping through the strait to pre‑war levels within a month, while Washington would lift the naval blockade and withdraw its military presence. The proposal is being shuttled through indirect talks in which Pakistan is playing a central mediating role, and the news sent New York markets higher and oil prices sharply lower.

Trump repeatedly described the talks as “negotiating on fumes,” saying the U.S. would not allow Iran or Oman to control the waterway and that the strait remains international waters. Secretary of State Marco Rubio emphasized that diplomacy remains the preferred path, while senior officials hinted at “option B” – a possible resumption of military action – if talks stall.

The conflicting narratives keep energy markets volatile, driving a 13% rise in UK energy bills and prompting price hikes in India and Europe. A credible deal could stabilize oil flows and ease inflation pressures, but the deadlock over Hormuz control and the threat of renewed strikes maintain geopolitical risk for investors and multinational supply chains.

Original Description

US President Donald Trump has said he is "not satisfied" yet with the terms of the deal being negotiated with Iran.

Iranian state TV reported what it said were details of a draft agreement, which included reopening the Strait of Hormuz and the withdrawal of US forces from the region.

The White House branded the text a "complete fabrication".

The Israeli military has issued evacuation orders for large parts of southern Lebanon, declaring the areas "combat zones" ahead of fresh strikes against Hezbollah.

Household energy prices will rise by 13% a year in July, in the UK, as soaring wholesale costs caused by the US-Israel war with Iran hit bills for the first time.

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