Iran has agreed to not build a nuclear weapon and to reopen the Strait of Hormuz if the US releases $25 billion in frozen assets as part of a President Trump-brokered peace deal, according to details released by Tehran on Sunday.

Washington and Tehran were expected to electronically sign a memorandum of understanding Sunday after a virtual meeting designed to set the table for negotiations over a longer-term deal on Iran’s nuclear program, Axios reported. 

Trump said the deal was expected to go through despite Israeli strikes in Lebanon, with the president holding a blunt call with Israeli Prime Minister Benjamin Netanyahu and Tehran to smooth things out. 

Iranian officials were cautiously optimistic that a deal to finally halt the conflict was on the horizon.

The war has raged for three and a half months, throwing world markets into chaos.

On Saturday, Trump and Pakistani Prime Minister Shehbaz Sharif said a deal would be signed Sunday and would immediately result in the reopening of the Strait of Hormuz, the crucial chokepoint through which a fifth of the world’s oil supplies flow.

“We are closer to a peace deal than ever before,” Sharif said on social media. “With finalization likely expected in the next 24 hours, Pakistan is preparing for the electronic signing of the peace deal immediately after, followed by technical-level talks next week.”

An Iranian Foreign Ministry rep said the deal could happen in the next few days.

The pact, which would see $25 billion in Iranian assets unfrozen by the US, does not solve all of the issues between Tehran and Washington but offers a 60-day framework for technical discussions on the rest, according to officials from Pakistan.

US Ambassador to the United Nations Mike Waltz said Sunday that the deal would see Iran give up their nearly 1,000 pound supply of highly enriched uranium, as well as their status as backers of terrorist proxies in the region. 

The US would also end its blockade of Iranian-linked ships coming out of the strait.

Shipping traffic through the busy narrow sea passage has slowed to a trickle.

The tentative pact goes on to state that the US and UN would lift sanctions on Iran and agree not to impose any new ones until a final deal, according to Tehran.  

The 60-day ceasefire would also reportedly pave the way for Washington to coordinate a reconstruction and development plan for Iran.

Qatari negotiators flew into Tehran on Sunday morning in coordination with the US to help with the finalizing of the agreement, an official told the New York Times.

A signing ceremony was reportedly expected for the coming days in Geneva, Switzerland, where US and Iranian negotiators met for talks in February before the start of the war.

Vice President JD Vance would potentially be the head of the US delegation, while Iran is sending its top negotiator, parliamentary speaker Mohammad Bagher Ghalibaf.

Trump suggested there may later be an in-person signing of the preliminary peace deal in the future after the planned electronic signing between both sides Sunday.

Iran’s Foreign Ministry insisted Saturday there were no plans for his negotiating team to travel to Geneva or elsewhere in the next day or two.

Trump is expected to remain in Washington to attend Sunday’s UFC fight at the White House, which coincides with his 80th birthday.

The apparent break in the logjam comes as Israel’s military announced Sunday it had launched strikes on neighboring Lebanon, targeting Hezbollah infrastructure in the capital, Beirut.

Netanyahu said the strikes were in response to Hezbollah attacks on the north of Israel.

Tehran, which is the terror group Hezbollah’s main backer, last responded to Israeli strikes on Beirut with its own strikes on Israel last weekend.

Iran has also insisted previously that any US-Iran ceasefire must include an end to Israeli strikes on Lebanon.

Trump told Fox News’ Trey Yingst that he asked Netanyahu, “What the f–k are you doing?” in response to the strikes.

“This morning’s attack on Beirut should not have happened, particularly on a special day when we are so close to a Peace Deal with Iran,” Trump posted on Truth Social. ” Israel has the right to defend itself against threats, but the attack it was responding to was very small and meaningless.

“We are very close to a Deal that will bring peace to the region, including to Lebanon, and all sides should stand down,” he said. “There should be no more attacks by Israel anywhere in Lebanon, but there should also be no more attacks by any other party, including Hezbollah, against Israel.”

“Let’s not blow it!”