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By Lesley Wroughton and Matt Spetalnick WASHINGTON (Reuters) - The Obama administration is expected to announce an agreement with Cuba in early July to reopen embassies and restore diplomatic relations severed more than five decades ago, U.S. sources familiar with the matter said on Friday. The two sides hope to conclude the deal by the first week of next month, clearing the way for Secretary of State John Kerry to visit Havana soon afterwards for a flag-raising ceremony to upgrade the U.S. Interests Section to a full-scale embassy, the sources said. Restoration of relations would be the latest phase in a normalization process, which is expected to move slowly because of lingering problems over issues such as Cuba's human rights record.More...