A memorandum aimed at ending the conflict in the Gulf could be signed as early as Sunday, according to a Western source cited by Reuters.

The agreement is still being finalised, with negotiations focusing on the final wording. Iran is reportedly maintaining its position that any deal must also bring an end to fighting in Lebanon, where Israel has been engaged in conflict with the Iran-backed Hezbollah group.

If negotiations are completed on schedule, the memorandum could be signed by US Vice President JD Vance and Iran's Parliament Speaker Mohammad Bagher Ghalibaf. Geneva is considered the most likely venue for the signing.

US President Donald Trump said he had halted plans for further strikes on Iran because a deal was close to being finalised.

According to Reuters, the draft agreement would include the easing of sanctions on Iran's oil sector, the release of frozen Iranian funds, and a halt to hostilities across the region, including in Lebanon.