The US and Iran have been negotiating an initial deal that could ease tensions, with leaked documents showing a draft agreement that includes phased, performance-based sanctions relief—not a complete lifting of all sanctions. The terms would tie relief to specific actions and milestones rather than removing restrictions upfront. The deal also reportedly involves reopening the Strait of Hormuz and $300 billion in US-backed reconstruction funding for Iran. Discussions are moving toward a formal signing in Switzerland, but this remains an interim agreement with critical issues like ballistic missile restrictions still to be worked out, meaning neither side has gotten everything it wanted. Markets are reacting to the news and some Middle Eastern leaders are cautiously optimistic, though many worry the agreement could collapse without strong enforcement mechanisms.