US and Iran have agreed to wording of a deal to end their war, Pakistan's prime minister says

ISLAMABAD (AP) — Pakistan’s prime minister said Friday the United States and Iran have agreed to wording of an agreement aimed at ending their war in the Middle East and that mediators were working with both sides to finalize a deal.

Prime Minister Shehbaz Sharif said the U.S. and Iran have reached a “final, agreed upon text.” He said Pakistan, which has taken the lead in mediation efforts, was working with the warring countries on next steps.

“Peace has never been this close as it is now,” Sharif said in a post on X.

The apparent breakthrough in negotiations comes after Iran exchanged fire with the U.S. and Israel over three days this week, threatening to return the Middle East to full-scale war.

There was no immediate comment from U.S. or Iranian leaders on Sharif’s statement.

Iranian Foreign Minister Abbas Araghchi said Friday an agreement “has never been closer” in post on X. U.S. President Donald Trump, who has said multiple times in recent weeks that the countries were on the cusp of a deal, shared Araghchi's post on his own social media.

None of the leaders gave details about the emerging agreement.

The war launched by the U.S. and Israel on Feb. 28 has rattled the Middle East and virtually shut down oil and natural gas shipments from the Persian Gulf. A fragile ceasefire has been in place since April 7.

The U.S. and Iran were making progress Friday toward completing a deal that could effectively end the war, reopen the Strait of Hormuz and begin the process of destroying or removing Tehran’s highly enriched uranium, according to a senior U.S. administration official.

The official, who briefed reporters on condition of anonymity under ground rules set by the White House, said a deal was 80% to 85% done and that the U.S. side believes “most of the people who have authority” in the Iranian government want to sign onto the deal “but not everybody.”

The official said technical details on how to remove Iran’s enriched uranium, according to the emerging agreement, would be worked out over 60 days after both sides sign it. The official did not detail who the U.S. envisions taking charge of removing the uranium, which is believed to entombed under three nuclear sites that were battered by U.S. strikes last year.

Three regional officials said the emerging deal is also expected to include the phased lifting of sanctions on Iran and the release of frozen Iranian assets. The officials spoke on condition of anonymity because of the sensitivity of the negotiations.

Underscoring the fragility of the negotiations, Trump on Friday lashed out at Iranian officials on social media and said: “They better get their act together, and FAST!” That was before he shared Araghchi's post.

Iran's nuclear program has been a key point of division. The U.S. and Israel fear it could lead to an atomic weapon — a main reason their leaders cited for going to war. Tehran has insisted its nuclear efforts are for peaceful purposes.

Also critical is Iran’s effective closure of the Strait of Hormuz, a vital shipping lane for oil and natural gas. Disruption of transit through the strait has crimped global energy supplies, driven up fuel prices and made food and other basics more expensive well beyond the region.

The U.S. has responded since mid-April with a naval blockade of Iranian ports to choke off Iran’s own oil exports.

The regional officials said they expect a signing ceremony for the agreement in the coming days after officials in Washington and Tehran approve it.

Trump on Thursday claimed significant progress in the negotiations, just hours after he threatened to escalate attacks and seize Iran’s oil industry. Esmail Baghaei, a spokesperson for Iran’s Foreign Ministry, said on state television that mediators were active and the text of a deal was “mostly finalized.”

There was no immediate comment Friday from Pakistan’s Foreign Ministry, which has been leading efforts to mediate a deal between the U.S. and Iran. Foreign Ministry spokesperson Tahir Andrabi had said Thursday that Pakistan remained involved in negotiations.

Israeli Prime Minister Benjamin Netanyahu has said Israel is not a party to the deal being negotiated. He said in a statement Friday that he and Trump were in “full agreement” that Iran must not have nuclear weapons.

Israeli Defense Minister Israel Katz said in a separate statement that Israel also expects Trump to uphold key Israeli interests, including weakening Iran's missile program and proxy network.

Katz warned that Israel could still act independently toward Iran and that the country would not pull out of the zones it is occupying in Lebanon, Syria and Gaza, nor would it withdraw from the northern refugee camps of the Israeli-occupied West Bank.

Iran has insisted that any deal to end the war must also end fighting in Lebanon between its ally militia Hezbollah and Israel. Netanyahu appears intent on pursuing his goal of destroying the militant group, complicating negotiations between Iran and the U.S.

The deal was largely being brokered by Pakistan, led by its army chief Field Marshal Asim Munir, the regional officials said, with backing from Saudi Arabia, Turkey, Egypt, and Qatar.

Price reported from Washington and Bynum reported from Savannah, Georgia. Associated Press journalists Julia Frankel in Jerusalem, and Collin Binkley and Aamer Madhani in Washington contributed.

A woman walks past an anti-American mural on the wall of the former U.S. Embassy, now a museum, in Tehran, Iran, Friday, June 12, 2026. (AP Photo/Vahid Salemi)

FILE - Vice President JD Vance, left, talks to Pakistan's Chief of Defence Forces and Chief of Army Staff Field Marshall Asim Munir, right, and Pakistani Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, center, before boarding Air Force Two after attending talks on Iran in Islamabad, Pakistan, April 12, 2026. (AP Photo/Jacquelyn Martin, Pool, File)

President Donald Trump is pictured during an event where he signs a proclamation about the fishing industry, in the Oval Office of the White House, Thursday, June 11, 2026, in Washington. (AP Photo/Jacquelyn Martin)

Residents swim and play in the waters of the Strait of Hormuz while cargo ships and commercial vessels lie anchored in the distance off Bandar Abbas, Iran, Wednesday, June 10, 2026.(Razieh Poudat/ISNA via AP)

NEW YORK (AP) — U.S. stocks are rising Friday after oil prices fell again, and SpaceX surged in its highly anticipated debut on Wall Street.

SpaceX is the first of three gargantuan companies in the artificial-intelligence industry expected to start selling their shares on the U.S. market, and it is being watched as a gauge for how hungry investors still are for AI stocks following vicious swings and big doubts for them over the last week.

The S&P 500 rose 0.4%. The Dow Jones Industrial Average was up 355 points, or 0.7%, as of 2:15 p.m. Eastern time, and the Nasdaq composite was 0.2% higher.

SpaceX jumped 25% to $168.90 a share as the rocket maker’s stock opened for trading, giving the company a market value of $2.21 trillion. It is the biggest IPO on record, far surpassing energy giant Saudi Aramco in 2019. The IPO has also made CEO Elon Musk the first-ever trillionaire.

SpaceX has big investments in AI, part of the reason it has built up $29.1 billion in debt, as of the end of March. Musk is hoping to use the surge of funding from the IPO to help fund plans for launching more satellites and even data centers in space. The company is also planning to eventually establish a colony on Mars.

The U.S. war with Iran also remains a big focus for Wall Street.

Stocks got a lift from a 3.2% dip for the price of Brent crude oil to $87.46 per barrel, deepening its loss for the week. Oil prices have come down since President Donald Trump on Thursday called off his threat to launch strikes on Iran and said a potential deal with Iran may be imminent.

A deal to end the war could reopen the Strait of Hormuz and allow oil tankers to once again deliver crude from the Persian Gulf to customers worldwide. Its near closure since the war began has sent the price of Brent up from roughly $70 per barrel and caused a wave of painful inflation for the world.

Of course, financial markets have rallied in the past on hopes that an end to the war with Iran was near, only to get disappointed each time.

The bigger factor for Wall Street over the last week has actually been AI stocks, and how they have gone from roaring to records to suddenly turning lower. The concern is whether such stocks shot too high, too fast because of AI mania, and their careening moves have sometimes reversed direction by the hour.

Several headed back down the roller coaster Friday following a climb on Thursday. Broadcom's drop of 1.3% was one of the heavier weights on the S&P 500.

Some of the pressure on AI stocks may be coming from investors pulling their money out in hopes of moving it to SpaceX and other big AI-related initial public offerings.

Elsewhere on Wall Street, Adobe dropped 7.9% despite reporting stronger profit and revenue for the latest quarter than analysts expected.

Its stock has lost 42% so far this year, and it announced its chief financial officer is leaving the company on Monday. Adobe is already looking for a CEO to replace Shantanu Narayen, who announced in March that he is stepping aside after 18 years as Adobe’s leader.

In the bond market, Treasury yields rose to regain some of their sharp slides the day before, when oil prices dropped following Trump’s announcement. The yield on the 10-year Treasury climbed to 4.48% from 4.45% late Thursday.

High yields can slow entire economies and undercut prices for all kinds of investments, including stocks and cryptocurrencies. They hit investments seen as the most expensive in particular, and some critics are calling the AI industry a bubble where investment inflated too far.

Yields got a boost after a report suggested sentiment among U.S. consumers is not as bad as economists feared. The preliminary survey from the University of Michigan said sentiment improved by more than expected. U.S. consumers said they were feeling some relief after gasoline prices eased a bit early in the month.

In stock markets abroad, indexes rallied as they caught up to Thursday’s big gains on Wall Street.

South Korea’s Kospi jumped 4.6% and trimmed its losses from earlier this month taken because of sell-offs for AI-related stocks. The Kospi has nearly doubled since the start of the year.

Tokyo’s Nikkei 225 rose 2.8%, and France’s CAC 40 climbed 1.8% for two of the world’s bigger moves.

AP Business Writers Chan Ho-him and Matt Ott contributed to this report.

Gwynne Shotwell, President and COO of SpaceX, right, poses with colleagues during a bell ringing ceremony for the IPO of SpaceX at the Nasdaq MarketSite in New York, Friday, June 12, 2026, in New York. (AP Photo/Frank Franklin II)

Traders Edward Curran, left, and Fred Demarco work on the floor of the New York Stock Exchange, Wednesday, June 3, 2026. (AP Photo/Richard Drew)

Trader Richard Cohen works on the floor of the New York Stock Exchange, Friday, May 29, 2026. (AP Photo/Richard Drew)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 12, 2026. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 12, 2026. (AP Photo/Ahn Young-joon)

Currency traders watch monitors at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, June 12, 2026. (AP Photo/Ahn Young-joon)