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.