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U.S. and Iran Prepare to Formalize 60-Day Peace Accord Amid Tense Ceasefire

A 14-point peace plan is set for a Friday signing in Switzerland as both nations observe a fragile cessation of hostilities during Khamenei’s funeral.

July 5, 2026 at 10:30 PM

The United States and Iran are operating under a fragile 60-day tactical ceasefire as Tehran conducts a week of funeral ceremonies for the late Supreme Leader Ali Khamenei. The two nations are scheduled to meet in Switzerland this Friday to formally sign a 14-point interim agreement. This accord mandates an immediate cessation of military actions on all fronts, including Lebanon, and requires both states to honor national sovereignty while avoiding domestic interference. Notably, the agreement includes a memorandum of understanding reaffirming non-proliferation commitments regarding nuclear weapons. Simultaneously, a new maritime strategy is emerging for the Strait of Hormuz. Following a 60-day fee-free transition period, Tehran intends to implement "service fees" for security and environmental protection. Iran’s ambassador to China, Abdolreza Rahmani Fazli, clarified these are not tolls but charges for vessel supervision, adding that nations that supported Iran during recent hostilities will receive "special treatment" under a framework being co-developed with Oman. On the ground in Tehran, funeral proceedings have been marked by intense public sentiment and significant logistical strain. Millions of mourners have gathered, with over 4,000 individuals seeking medical care and authorities preparing for mass-casualty contingencies. Amidst official talk of peace, state rhetoric continues to emphasize "resistance and revenge," and grassroots hostility remains visible. President Trump has stated that while neither side will engage in military action during the ceremonies, diplomatic pressure remains high following the destruction of 48 Iranian leadership targets and nine warships.

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