Iran Reviews US Peace Proposal As Both Sides Edge Toward Preliminary Gulf War Deal

Iran announced on Wednesday that it is currently reviewing a new proposal from the United States, as sources revealed that both nations are converging on a one-page memorandum that would bring the Gulf war to a formal close, while deferring more complex issues — including Iran’s nuclear ambitions — to future negotiations.

An Iranian foreign ministry spokesperson, quoted by the country’s ISNA news agency, said Tehran would communicate its response shortly through Pakistan, which hosted the conflict’s only peace talks and has since functioned as the primary channel of communication between the two sides.

In an early morning social media post, U.S. President Donald Trump stopped short of detailing any specific proposal but suggested the war could be brought to an end if “Iran agrees to give what has been agreed to.”

He later told the New York Post that it remained premature to discuss in-person meetings aimed at signing a final agreement.

A Pakistani source, along with another individual familiar with the mediation process, confirmed details first reported by Axios regarding a proposed 14-point, one-page memorandum that would officially end the war.

According to the sources, the memorandum would serve as a precursor to broader discussions on unblocking the Strait of Hormuz, removing U.S. sanctions against Iran, and establishing limits on Iran’s nuclear programme.

“We will close this very soon. We are getting close,” the Pakistani source said.

The White House, the State Department, and Iranian officials reached by Reuters did not provide immediate responses to requests for comment.

By late afternoon, Washington’s wartime ally Israel had also yet to issue any public statement on the matter.

Israel has been pushing Washington to maintain firm demands before any agreement is reached.

An Israeli source told Reuters that Israel was unaware Trump was potentially nearing a deal, adding that the country was instead bracing for an intensification of the fighting.

Oil Prices Tumble

News of a possible agreement triggered a sharp drop in global oil prices, with benchmark Brent crude futures declining roughly 11% to approximately $98 a barrel.

Global share prices surged and bond yields fell as markets responded optimistically to the prospect of an end to a conflict that has severely disrupted energy supplies.

In his morning post, Trump wrote: “Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective Blockade will allow the Hormuz Strait to be OPEN TO ALL, including Iran.”

He added: “If they don’t agree, the bombing starts, and it will be, sadly, at a much higher level and intensity than it was before.”

Just hours before, Trump had suspended a two-day-old naval operation to reopen the blockaded strait, pointing to progress in peace talks as justification.

Key U.S. Demands Absent From Draft

Sources familiar with the mediation said U.S. negotiations are being steered by Trump’s envoy Steve Witkoff and son-in-law Jared Kushner.

Should both parties agree on the preliminary deal, a 30-day window of detailed negotiations toward a comprehensive agreement would begin.

That full agreement would encompass the lifting of U.S. sanctions and the release of frozen Iranian assets, the removal of competing blockades on the Strait of Hormuz by both countries, and some form of restriction on Iran’s nuclear programme — with the goal of pausing or establishing a moratorium on Iranian uranium enrichment.

While sources indicated the memorandum would not initially require concessions from either party, several longstanding U.S. demands that Iran has previously rejected were notably absent — including curbs on Iran’s missile programme and an end to Tehran’s backing of proxy militias across the Middle East.

The sources referenced potential restrictions on future Iranian uranium enrichment but made no mention of Iran’s existing stockpile of over 400 kilograms (roughly 900 pounds) of uranium already enriched to near weapons-grade — material Washington had previously demanded Iran surrender as a condition for ending the war.

Even as the draft text appeared to sidestep some of Iran’s past red lines, there were indications that Tehran may still be holding out for more favourable terms.

Iranian lawmaker Ebrahim Rezaei, a spokesperson for parliament’s influential foreign policy and national security committee, took to X to describe the text reported by Axios as “more of an American wish-list than a reality.”

“The Americans will not gain anything in a war they are losing that they have not gained in face-to-face negotiations,” he wrote.

Iran’s Foreign Minister Abbas Araqchi, currently on a visit to China, made no reference to Trump’s latest remarks but stated that Tehran was seeking “a fair and comprehensive agreement.”

Iran’s Tasnim news agency, citing an unnamed source, reported that Iran still has reservations about the U.S. proposal.

Trump Pauses Mission to Reopen Strait

Earlier in the day, Trump cited “great progress” in negotiations as grounds for suspending “Project Freedom” — a mission he had announced two days prior to escort vessels through the blocked strait.

The operation had failed to produce any meaningful resumption of maritime traffic through the waterway, while simultaneously triggering a fresh wave of Iranian strikes on ships in the strait and targets in neighbouring countries, with the United Arab Emirates bearing the brunt of the attacks.

In the most recent incident, a French shipping company confirmed on Wednesday that one of its container ships had been struck in the strait the day before, with injured crew members subsequently evacuated.