Trump said agreement will reopen the Strait of Hormuz.
President Donald Trump announced "major combat operations" against Iran on Feb. 28, with massive joint U.S.-Israeli strikes targeting military, government and infrastructure sites.
Following the announcement of a two-week ceasefire, initial U.S.-Iran talks in Pakistan in April failed to reach a peace deal.
Trump later announced the open-ended extension of the ceasefire and the continuation of a U.S. blockade until negotiations are concluded "one way or the other."
The funeral ceremonies for former Supreme Leader Ali Khamenei will begin on July 4 in Tehran, Official Islamic Republic News Agency announced.
Funeral processions will then be held in in Tehran and Qom on July 6 and July 7, concluding with a procession and burial in Mashhad on July 9.
U.S. forces downed multiple one-way attack drones launched by Iran, U.S. Central Command said Friday night.
"Iran launched multiple one-way attack drones in an attempt to strike commercial ships transiting the Strait of Hormuz," CENTCOM said in a social media post. "U.S. forces have downed all of them in recent hours as traffic flow through the strait continues unimpeded."
It's the second night in a row the U.S. said it has downed Iranian drones launched towards ships in the strait.
Pakistani Prime Minister Shehbaz Sharif said a “final, agreed upon text of the peace deal has been reached” between the U.S. and Iran, in a post on X.
“Pakistan is now working closely with both sides to finalize the next steps,” Sharif wrote Friday. “Peace has never been this close as it is now.”
The U.S. and Iran continue to offer conflicting statements about the terms of a short-term agreement known as a Memorandum of Understanding.
A senior administration official said the agreement outlines that Iran's nuclear material will be destroyed and removed, its nuclear program will be dismantled, none of Iran's money released until they perform, the Strait of Hormuz will be open and Iran will not fund terrorist groups.
The senior administration called this "a performance- based deal" but did not offer any further details. Iran has not publicly agreed to any terms of what has been outlined above.
"The deal is structured to ensure that the US and its allies concerns are prioritized, and that if the Islamic Republic of Iran meets its obligations, then economic benefits will flow to them and to the entire region. This deal has the potential to remake the region and lead to lasting peace," Vice President JD Vance said in a social media post.
President Donald Trump also recently posted on social media a statement from the Iranian foreign minister, urging the media not to speculate about what's in the deal and claiming that a deal has never been closer.
-ABC News' Rachel Scott and Justin Fishel
