According to officials and analysts cited in a Reuters report, Iranian authorities are now attempting to manage heightened political and social tensions following the end of hostilities, with a memorandum expected to be signed later this week outlining an interim arrangement between Tehran and Washington.

The report said hard-line factions within Iran, including elements of the Revolutionary Guards and allied political groups, view the outcome of the confrontation as a strategic success and are pushing for continued military strengthening and a firm negotiating position in any future talks with the United States.

At the same time, Iranian citizens are described as facing severe economic hardship, including high inflation, currency depreciation and unemployment, with widespread expectations that any sanctions relief or access to frozen assets will be directed toward improving living standards and rebuilding infrastructure damaged during the conflict.

Hamidreza Azizi, a visiting fellow at the German Institute for International and Security Affairs, said the end of the war could intensify domestic challenges for the clerical leadership, noting that public expectations for economic improvement may rise sharply as military tensions ease.

Reuters also cited Iranian officials as saying that any financial relief under the interim arrangement would likely be allocated to economic stabilisation measures, including support for banking liquidity and reconstruction, while acknowledging risks of renewed public unrest if conditions do not improve.

The report said Iran’s leadership is aware of the potential for renewed protests, recalling previous large-scale demonstrations in 2022–2023, and that authorities have historically relied on strict security measures to suppress dissent during periods of instability.

Saeed Laylaz, an Iranian economist and political analyst, said Iran faces a limited window to stabilise internal conditions, while noting that broader sanctions relief tied to long-term economic recovery would depend on a more comprehensive agreement with the United States.

The report added that divisions within Iran’s political establishment persist over the direction of post-war policy, with some factions prioritising economic recovery and others advocating for continued confrontation and military expansion.

Analysts also noted that tensions between reformist and hard-line elements may shape the government’s ability to manage expectations, particularly as debates continue over Iran’s foreign policy direction and internal governance following the conflict.

Saudi Arabia welcomed the agreement between Washington and Tehran to halt military operations and begin negotiations over a 60-day period aimed at reaching a permanent settlement.

Kuwait also welcomed the deal, which includes an immediate cessation of military operations and guarantees freedom of navigation through the Strait of Hormuz, a key global energy route.

Kuwait praised mediation efforts by Pakistan and Qatar, along with other countries involved in facilitating the agreement, and called for disputes to be addressed through dialogue, mutual respect and non-interference.

Qatar said the agreement could help bring a lasting end to military operations and reaffirmed its support for diplomacy as the preferred method of resolving conflicts.

Egypt and Lebanon also welcomed the development, saying it could help reduce regional tensions and create momentum for broader negotiations.

Egypt described the agreement as an important step toward restoring regional and international stability and said it hoped the end of the conflict would support wider diplomatic efforts in the Middle East.

Lebanon’s Parliament Speaker Nabih Berri said the agreement could contribute to regional security and stability, while praising mediation efforts by Pakistan, Qatar, Saudi Arabia and Egypt.

Türkiye also described the deal as a significant development that could strengthen peace and stability across the region.

The Gulf Cooperation Council welcomed the signing of the memorandum and expressed hope that it would lead to a lasting agreement and greater regional security.

Jordan said the start of negotiations toward a permanent settlement was an important step for restoring regional and international security.

The United States and Iran announced the agreement after more than three months of conflict. US President Donald Trump said he had authorized an end to the US naval blockade of Iranian ports in the Strait of Hormuz.

Details of the agreement were not immediately released, while further negotiations, including discussions related to Iran’s nuclear program, are expected to continue.

According to the report, the draft agreement also calls for the immediate reopening of the Strait of Hormuz without tolls and links sanctions relief for Iran to compliance with the terms of the deal. It also outlines a framework for Iran’s enriched uranium stockpile, while leaving detailed nuclear commitments for a later comprehensive agreement.

The memorandum is said to have been mediated by Qatar and Pakistan, and would be referred to as the “Islamabad agreement” if finalized, according to Axios.
Axios, citing a diplomat from one of the mediating countries and a US official, reported that both sides had broadly agreed on the text, although final approval was still pending.

The sources said Iranian leadership had given preliminary approval, though questions remained over final endorsement at the highest level.

US President Donald Trump was quoted as saying that he had halted planned military strikes after progress in negotiations and suggested that an agreement could be signed within days. However, Iranian officials told state media that no final conclusion had been reached, and said changes in US positions and new demands had delayed finalization of the text.

The draft reportedly includes provisions for a 60-day ceasefire window during which broader nuclear talks would continue, alongside mechanisms for managing Iran’s nuclear material under international supervision. It also includes financial provisions, with Iran seeking immediate disbursement of funds upon signing, while US officials reportedly favor phased release based on compliance.

Axios reported that the White House has repeatedly believed a deal was imminent over the past two months, but negotiations have previously stalled due to unresolved issues between the two sides.

Iranian Foreign Minister Abbas Araghchi said the idea was unrealistic, responding to Trump’s recent remarks that the two leaders could meet in the future depending on how events unfold.

“I think we should be realistic and think and live in the real world,” Araghchi told Lebanon-based Al Mayadeen television.

Trump told the New York Post on Wednesday that he would like to meet Khamenei and suggested such a meeting could eventually take place.

Mojtaba Khamenei became Iran’s supreme leader in March following the death of his father, Ali Khamenei, in U.S.-Israeli strikes on Feb. 28.

Araghchi said the new supreme leader remains fully engaged in state affairs despite not appearing publicly since his appointment. He attributed the absence to security concerns linked to the conflict that erupted earlier this year.

Iran and the United States have held both direct and mediated talks since a ceasefire took effect on April 8, but negotiations have yet to produce a lasting settlement to the conflict.

In an interview published Wednesday, Trump said Iran had already agreed not to pursue a nuclear weapon and suggested Khamenei was directly involved in discussions with the United States.

“I would like to meet him, and we probably will meet at some point, depending on how it all works out,” Trump said.

The comments come as the United States and Iran seek to build on a fragile ceasefire following weeks of regional tensions and military exchanges.

Trump also acknowledged a tense conversation with Israeli Prime Minister Benjamin Netanyahu over the conflict in Lebanon, saying he was “a little bit perturbed” by Israel’s continued military actions there.

Despite the disagreement, Trump said he maintained a strong relationship with Netanyahu and emphasized that the two leaders continue to get along well.

The remarks highlight Washington’s efforts to advance diplomacy with Iran while simultaneously pressing for de-escalation in ongoing regional conflicts involving Israel and Hezbollah.

Kuwait said one person was killed and several others were injured after Iranian attacks struck civilian and vital infrastructure, including Kuwait International Airport. The foreign ministry said the assault caused damage to key facilities and diplomatic missions, while air traffic was temporarily suspended before operations resumed later from Terminal 4 following safety assessments.

Iran’s Islamic Revolutionary Guard Corps (IRGC) said it had targeted the headquarters of the U.S. Fifth Fleet in Bahrain, an airbase and military helicopters in a Gulf state, describing the operation as retaliation for what it called a U.S. strike on a communications tower south of Qeshm Island.

The U.S. military rejected Iran’s account, saying its forces intercepted multiple Iranian missiles and drones launched toward Kuwait and Bahrain before conducting strikes on Qeshm Island. U.S. Central Command said no Iranian projectiles reached their intended targets.

Iranian media reported explosions near Qeshm Island, located close to the strategic Strait of Hormuz, while Tehran also accused U.S. forces of striking an Iranian tanker near the waterway. The IRGC said it subsequently targeted a vessel identified as Panaya with missiles.

The renewed hostilities followed reports from Iranian media that communication with international mediators over extending a ceasefire framework had stalled. However, U.S. President Donald Trump dismissed suggestions that talks had ceased, saying discussions with Tehran had continued in recent days.

Trump also reiterated that negotiations remained active and urged Iran to reach an agreement, while Secretary of State Marco Rubio told lawmakers that any sanctions relief would depend on Tehran abandoning its nuclear activities.The confrontation comes amid a broader regional conflict that began in late February following U.S. and Israeli strikes on Iran.

Although Washington and Tehran announced a tentative framework last week aimed at ending the war, no final agreement has been reached.The conflict has increasingly intersected with fighting between Israel and Lebanon’s Hezbollah movement.

Iranian officials have linked any lasting truce to a reduction in hostilities in Lebanon, while the United States and Israel maintain the two issues are separate.Iran continues to seek sanctions relief, access to frozen oil revenues and eased restrictions affecting its energy exports, while Washington says preventing Iran from obtaining nuclear weapons remains its primary objective.

The latest military exchanges have further heightened concerns over security in the Strait of Hormuz, a critical energy corridor that previously handled roughly one-fifth of global oil and liquefied natural gas shipments, with disruptions continuing to affect shipping, trade and humanitarian supply chains across multiple regions.

The report said Iran’s leadership has imposed strict security measures following U.S. and Israeli military operations that intelligence officials believe exposed vulnerabilities within the country’s command structure and contributed to the deaths of several senior Iranian figures.

According to CBS, Iranian officials authorized to engage with Washington have faced difficulties communicating within their own leadership system, with proposals transmitted to Tehran taking extended periods to receive responses.

U.S. officials cited by the broadcaster said messages intended for the supreme leader are relayed through intermediaries before guidance is returned, slowing decision-making at a sensitive stage in diplomatic contacts between Tehran and the administration of U.S. President Donald Trump.

The report said many senior Iranian officials are spending extended periods in fortified facilities and limiting direct communications as part of broader efforts to reduce exposure to potential attacks.

CBS reported that even some high-ranking officials either do not know Khamenei’s precise location or lack direct access to him. Communications are said to be handled through trusted couriers whose role is to shield information about his whereabouts.

According to the report, Khamenei is providing broad direction on issues that can be discussed in negotiations while identifying matters that remain outside the scope of talks.

The security measures have emerged as diplomatic efforts continue to explore a possible framework for easing tensions between Washington and Tehran following weeks of conflict and heightened regional instability.

CBS reported that Khamenei has not made a public appearance since before the outbreak of the war, underscoring the extent of the security precautions surrounding Iran’s leadership.

The discussions in Tehran came as Iran said it was reviewing Washington’s latest position on ending the conflict that erupted after joint U.S.-Israeli strikes on Iran in February and has remained paused under a fragile ceasefire since April 8.

According to Iran’s state-run IRNA news agency, Pezeshkian and Naqvi reviewed “the latest regional developments and the diplomatic consultations related to the Iran-U.S. talks,” while emphasizing continued political coordination and regional cooperation.

Naqvi conveyed the “messages and views” of Pakistani officials regarding ongoing negotiations and the importance of maintaining dialogue, IRNA reported.
Pakistan has emerged as a key intermediary since the conflict began, hosting rare direct talks between U.S. and Iranian officials last month as Islamabad intensified diplomatic outreach aimed at preventing renewed escalation in the Gulf region.

Pezeshkian praised Pakistan’s efforts to support regional stability and stressed the importance of continued coordination between Tehran and Islamabad, according to Iranian media.
The war, triggered by U.S. and Israeli strikes on Tehran in late February, disrupted shipping through the Strait of Hormuz, a strategic energy corridor that carries roughly one-fifth of global oil and gas supplies.

Although direct fighting halted under the ceasefire agreement, negotiations have shown limited progress in recent weeks.
Speaking to reporters, Trump said military action remained an option if Tehran failed to respond positively to U.S. proposals.

“Believe me, if we don’t get the right answers, it goes very quickly. We’re all ready to go,” Trump said, according to the Associated Press.
Asked how long Washington would wait, Trump replied: “It could be a few days, but it could go very quickly.”

Trump also reiterated that the United States would not permit Iran to acquire a nuclear weapon.
“We’re in the final stages of Iran,” Trump said earlier. “Either have a deal or we’re going to do some things that are a little bit nasty.”

Iran said it was examining Washington’s latest views after submitting a new proposal this week. Iranian officials indicated the offer included demands previously rejected by Trump, including sanctions relief, compensation for war-related damage, release of frozen assets and changes linked to the Strait of Hormuz.

“We have received U.S. views and are reviewing them,” Iranian Foreign Ministry spokesman Esmaeil Baghaei was quoted as saying by Nour News.

The uncertainty surrounding negotiations has contributed to volatility in global energy markets and increased political pressure on Trump ahead of U.S. midterm elections later this year amid rising fuel prices.

The White House said Witkoff and Kushner would hold an “in-person conversation” with Iranian representatives in Islamabad, but Iranian state media reported that direct negotiations were not planned and that Pakistan would instead act as an intermediary.

Iranian Foreign Minister Abbas Araghchi, who arrived in Islamabad on Friday, delivered Tehran’s negotiating demands and concerns over U.S. conditions to Pakistani officials, a Pakistani source involved in the discussions told Reuters.

Pakistan’s Foreign Ministry said Araghchi’s visit focused on “ongoing efforts for regional peace and stability,” without explicitly confirming face-to-face engagement between Iranian and American officials.

Security across Islamabad was tightened sharply before the talks, with major roads sealed, military checkpoints reinforced, and troops deployed around the capital’s airport and heavily fortified Red Zone.Residents reported widespread disruption as police and soldiers controlled key intersections, helicopters circled overhead, and airport access routes were placed under heightened surveillance following the Iranian delegation’s arrival late Friday.

White House Press Secretary Karoline Leavitt said the renewed talks followed an Iranian request for direct engagement after President Donald Trump urged Tehran to return to negotiations.“The Iranians reached out, as the president called on them to do, and asked for this in-person conversation,” Leavitt said, adding that the talks would “hopefully move the ball forward toward a deal.”

Vice President JD Vance, who led a first round of negotiations in Islamabad earlier this month that ended without agreement, remained on standby to travel if required.Iranian state television, however, said Araghchi had no intention of meeting U.S. officials directly and that Islamabad would serve only as a channel for conveying Tehran’s proposals to Washington.

Iran’s military on Saturday warned it would respond if the United States continued what it described as a blockade of Iranian ports, calling the move “banditry” and “piracy.”In a statement carried by state broadcaster IRIB, Iran’s central military command Khatam Al-Anbiya said that if “the invading U.S. military continues blockading, banditry, and piracy in the region,” it would face retaliation from Iran’s armed forces.

“We are ready and determined, while monitoring the behavior and movements of enemies,” the statement said.Iran’s Defense Ministry separately said Washington was seeking a “face-saving” way to withdraw from the war.

“Our military power today is a dominant force, and the enemy is looking for a face-saving way to escape the war quagmire it has become trapped in,” ministry officials were quoted as saying by ISNA.Diplomatic efforts have stalled in recent weeks as Iran refused to rejoin formal negotiations while a U.S. naval blockade on its ports remained in place.

At the same time, Tehran has imposed a de facto restriction on the Strait of Hormuz, allowing only limited shipping through the strategic waterway that handles roughly one-fifth of global oil trade.The disruption has unsettled energy markets and raised concerns over broader supply chain instability.

Oil prices fell on Friday as hopes grew that the Islamabad talks could lead to de-escalation.European Council President Antonio Costa said the immediate reopening of the strait was essential.“The strait must immediately reopen without restrictions and without tolling,” Costa said.

“This is vital for the entire world.”Major Wall Street indexes closed at record highs on Friday as investors responded positively to corporate earnings and expectations of diplomatic progress.Meanwhile, Washington expanded its military presence in the region with the deployment of its third aircraft carrier, the USS George H.W. Bush, to the Middle East.

Araghchi is expected to travel next to Oman and Russia for further consultations on ending the conflict launched on Feb. 28 between Iran, Israel, and the United States.

The Islamabad talks are being closely watched as a potential turning point for whether the current ceasefire evolves into a broader settlement or gives way to renewed confrontation across the region.

In a post on X, Qalibaf accused Donald Trump of attempting to turn diplomacy into a “table of surrender,” adding that Tehran was instead preparing “to reveal new cards on the battlefield.”His remarks come as a two-week ceasefire in a conflict that has killed thousands and disrupted global markets, particularly energy supplies, is set to lapse later this week.

The truce has come under strain following a U.S. move to seize an Iranian cargo vessel accused of violating a maritime blockade, prompting Tehran to warn of retaliation.

Iran has consistently rejected negotiations conducted under coercion, while Washington has maintained pressure through military and economic measures as part of its broader strategy toward Tehran.