Iran says no final decision on US peace deal as negotiations continue

A major rescue operation was launched in the Arabian Sea on Sunday morning after an Indian-crewed dhow, MSV Virat 1, began sinking approximately 80 nautical miles off Ras Al Hadd in Oman.

Swift international response

The Indian-flagged mechanised sailing vessel ran into severe distress early Sunday, prompting a coordinated response from the US Navy, Indian Navy and merchant vessels in the area.

A US Navy P-8 maritime patrol aircraft operating in the region responded to the crisis by dropping an inflatable life raft near the sinking vessel. The aircraft crew monitored the evacuation from the air, ensuring all 14 Indian crew members successfully boarded the raft.

Indian Navy diverts ships

Upon receiving the alert, the Indian Navy immediately diverted its surface vessels towards the location. The merchant vessel MV Jabal Ali 9, a St Kitts and Nevis-flagged ship that had departed from Sohar in Oman and was headed to Mumbai, changed course to assist.

According to sources, the commercial ship intercepted the life raft and brought all 14 Indian mariners on board. Initial health assessments indicate the crew members are out of danger and in stable condition.

Engine failure cited

The Embassy of India in Muscat confirmed that the vessel experienced an engine failure that forced the crew to abandon ship. “It has emerged that the vessel experienced an engine failure, and the crew eventually transferred safely to a liferaft. Rescue operation is presently underway through ships in vicinity, under coordination of Omani authorities,” the embassy said in a post on X.

The exact cause of the flooding that led to the sinking remains under investigation. The incident occurred in waters near the Strait of Hormuz, one of the world’s most critical maritime corridors, though authorities have not linked the distress to the ongoing security situation in the region.

Iran cautious on peace deal

In a separate development, Iran has sought to downplay expectations of an immediate US-Iran peace deal, with Tehran saying no final decision has been made on the proposed memorandum of understanding.

Iran’s semi-official Fars news agency, citing a source close to the negotiating team, reported that the Islamic Republic has “not yet taken or announced its final decision” regarding the agreement. Political, legal and technical reviews are continuing at both the expert and decision-making levels.

This contradicts US President Donald Trump’s earlier claim that an agreement could be signed as early as Sunday. Trump wrote on Truth Social that the deal was “scheduled to get signed tomorrow, and immediately after it is signed, the Hormuz Strait is OPEN TO ALL”.

Mixed signals

Iranian Foreign Ministry spokesman Esmaeil Baghaei told state media that the signing will not happen on Sunday, though he did not rule out the possibility in the coming days. “The likelihood of finalising the memorandum of understanding in the coming days is high,” he was quoted as saying.

Pakistan, which has played a key mediating role in the talks, said a framework agreement was closer than ever. Prime Minister Shehbaz Sharif said Pakistan was preparing for the electronic signing of the peace deal, followed by technical-level talks next week.

The proposed agreement is expected to extend the current ceasefire by 60 days, reopen the Strait of Hormuz to all shipping, and launch negotiations over Iran’s nuclear programme.

What’s next

The rescued Indian sailors are expected to be transferred to Indian Navy vessels for medical evaluation and eventual repatriation. Meanwhile, the world continues to watch as diplomatic efforts to end the US-Iran conflict reach a critical juncture, with both sides signaling that a deal may be close — even if the timing remains uncertain.