US President Donald Trump said on Friday that Iran's leaked statements on a deal with the United States do not represent what has been agreed.

"What they said, including their pathetic statement that there is an agreement, has nothing to do with the truth, they are people with no honor in dealing. There is no such thing as dealing with them in good faith. It's a strange thing, they have to act well, and quickly."

Iran leaks terms of the deal

The terms of the deal, as Iranian officials described it on Friday, meet most of Tehran's demands, while Trump appears to have achieved little of what he has sought, except for the reopening of the Strait of Hormuz, which Iran closed after the U.S. president ordered attacks in February.

A senior Iranian source said the draft agreement stipulates the lifting of sanctions on Iran's oil, the release of billions of dollars of frozen funds and a cessation of hostilities on all fronts, including Lebanon.

According to the source, the nuclear issues will be postponed to later talks. Washington wants to conclude a deal that guarantees that Iran does not develop a nuclear weapon, while Tehran denies seeking to do so.

The draft includes lifting sanctions, unfreezing Iranian assets and halting Israeli attacks on Lebanon key Iranian demands, the source said. The source did not say what Iran might offer in return. There has been no response from the United States so far.

Source: U.S.-Iran Memorandum of Understanding in Geneva Sunday

A memorandum of understanding between the United States and Iran to stop the war in the Gulf region could be signed by Sunday, a Western source said, adding that Geneva is the likely place for negotiations.

The text of the memorandum is still being prepared, and Iran is sticking to its position that the agreement will end the fighting in Lebanon, where Israel is launching strikes on Lebanon, and the goal was to finalize the text by Saturday so that the agreement could be signed in the presence of U.S. Vice President J.D. Vance and Iranian Parliament Speaker Mohammad Baqer Qalibaf. A location has not yet been determined, but Geneva is the most likely location.

Iran's Mehr news agency reported that the conditions also include other major U.S. concessions, including a commitment to withdraw its troops from areas around Iran and to present a plan to rebuild Iran's devastated economy.

"The United States and its allies must submit plans for Iran's reconstruction worth at least $300 billion," the IAEA report said.

U.S. forces shoot down two Iranian drones

Iranian media reported that Foreign Ministry spokesman Esmail Baghaei said large parts of the deal had been finalized, but that Iran would not compromise on its red lines.

Tensions remained high in the Strait of Hormuz, where U.S. forces shot down two Iranian drones after Tehran tried to attack commercial vessels passing through the vital waterway, a U.S. official said.

State media said the Iranian military had prevented an oil tanker from crossing the strait, noting that explosions were heard early on Friday.

The conflict has become a political concern for the White House, with polls showing Trump's approval ratings plummeting amid voters' anger over rising gasoline prices, and some Republicans have openly expressed concern about losing a majority in Congress in November's midterm elections due to the unpopular war.