However, Trump says an Iran agreement could be signed as soon as this weekend.
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."
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
Israeli Defense Minister Israel Katz said Israel expects President Donald Trump to insist on preventing "Iran from obtaining nuclear weapons" as well as "other principles in the field of missiles and terrorist proxies."
"Israel must ensure that we will also have the ability to act independently in the future to prevent Iran from obtaining nuclear weapons, and Prime Minister Benjamin Netanyahu and I have instructed the IDF to prepare accordingly," he said in a statement Friday.
Katz also said Israel will not withdraw from the areas it occupies in Gaza, the West Bank, Lebanon, and Syria, adding that Israel would expand operations in the West Bank "if necessary."
Iran's Foreign Minister Abbas Araghchi said that the Islamabad Memorandum of Understanding "has never been closer."
Araghchi asked the media to refrain from "speculation" about the content of the deal, saying "all details will be shared with the public in due course."
