US, Iran Agree to Weeklong Calm to Advance MoU Talks, Axios Reports

WASHINGTON, July 1: The United States and Iran have reached an understanding to reduce tensions for the coming week to allow progress on their memorandum of understanding (MoU) without further military escalation, Axios reported, citing a US official.

“We have reached an understanding that we will keep things quiet for the coming week, so progress on all aspects of the MOU can be worked on in a productive environment, without missiles flying,” the official was quoted as saying.

The official added that US President Donald Trump had made clear that any future attacks would trigger a stronger response, saying Washington would target actions that further weaken Iran’s position in the Strait of Hormuz.

According to Axios, meetings in Doha between Trump envoy Steve Witkoff, Jared Kushner and Qatari officials went well and helped pave the way for technical discussions between US and Iranian teams. It remained unclear whether Witkoff and Kushner held direct talks with Iranian officials.

Sources said discussions focused on the Strait of Hormuz, Iran’s frozen assets and the Lebanon ceasefire.

A US official said Gulf states were discussing the future management of the Strait of Hormuz as part of broader US-Iran negotiations, urging Tehran to pursue a wider nuclear and regional agreement rather than seek revenue through restrictions on the strategic waterway.

The official said lifting US sanctions under a broader agreement could provide Iran with significantly greater economic benefits through oil and trade.

Axios also reported that US officials denied reports that Washington and Tehran had agreed in Doha to release an initial tranche of frozen Iranian funds held in Qatar.

Officials said no funds had been released, while a regional source said any potential arrangement would not involve a cash transfer but could allow Iran’s central bank to use funds for humanitarian purchases, including some goods from the US market.

During the Doha discussions, US negotiators also told Iran that Washington would continue efforts to ensure Israel complies with the Lebanon ceasefire, with a possible further Israeli withdrawal from southern Lebanon depending on implementation, according to a regional source.