The US and Iran could finalize a peace agreement within 24 hours, ending more than three months of war that has disrupted global energy supplies and pushed gasoline prices higher. 

"We are closer to a peace deal than ever before," Pakistan's Prime Minister Shehbaz Sharif said on Saturday in a post on X. "With finalization likely expected in the next 24 hours, Pakistan is preparing for the electronic signing of the peace deal immediately after, followed by technical-level talks next week."

The White House wants Iran to reopen the Strait to maritime traffic and curb Iran's nuclear program. Iran has insisted on retaining a degree of control over the waterway and gaining immediate access to its frozen funds. They have failed to agree on whether the Islamic Republic's uranium enrichment would take place after the interim deal is signed.

"We would like to thank the United States of America and the Islamic Republic of Iran for their ongoing commitment during the negotiations," Sharif said. "We are confident that this historic peace deal will form a strong foundation for lasting peace."

Tit-for-tat strikes, including the shooting down of a US Apache helicopter on June 8 off the coast of Oman, have raised concerns that an agreement remained out of reach. President Donald Trump said on Thursday in a post on Truth Social that he canceled planned strikes against Iran after negotiations were approved by the country's highest leadership. 

85% Chance Deal Will Be Signed

There was an 80% to 85% chance Washington and Tehran would sign the pact soon, Bloomberg News reported, citing a senior Trump administration official on Friday. The two countries could sign a deal as soon as Sunday, Bloomberg reported, citing people familiar with the plans. 

Iran's Foreign Minister Abbas Araghchi said in a speech carried by state television on Friday the signing of a deal could take place in the coming days. 

However, Iran's Mehr News Agency reported that a draft deal includes a commitment from the US to lift oil sanctions. Final negotiations will not begin until half of Iran's frozen funds are released and a US naval blockade ends, Mehr reported.

Trump insisted on Friday that the terms of a war-ending deal that have been circulating in Iranian state media "have NOTHING to do with the terms that were agreed to, in writing."  

Trump to Attend G7

The potential deal comes just days before Trump is set to meet world leaders at the G7. The G7 will bring together the leaders of the US, France, Germany, the UK, Canada, Italy and Japan as well as the European Union for the summit at Évian-les-Bains from June 15 to June 17. 

"Leaders will arrive in Évian confronting a geopolitical and economic environment very different from the one France envisioned when it assumed the presidency and crafted its policy priorities," Heidi E. Crebo-Rediker, a Senior Fellow at the Council on Foreign Relations, wrote on Thursday. "The US and Israeli attack on Iran in late February and Tehran's subsequent retaliation and closure of the Strait of Hormuz have unleashed a wave of energy, supply chain, and commodity shocks that are wreaking havoc on the global economy."

The leaders will also discuss rising transportation costs, concerns about fertilizer supplies and food security, Crebo-Rediker wrote. "Renewed inflationary pressures are likely to dominate both formal discussions and private conversations among leaders."

The meeting comes at a time of growing tensions between the US and many of its largest economic and security partners. Trump will hold bilateral meetings with the leaders of France, Qatar, United Arab Emirates, Egypt as well as India, according to senior administration officials who briefed reporters on the upcoming trip on the condition of anonymity.