The United States and Iran are moving closer to a possible agreement aimed at ending the conflict in the Gulf, according to sources familiar with the talks. The proposed deal could ease tensions around the Strait of Hormuz after weeks of military escalation and disruptions to global energy supplies.
A source confirmed that a report by Axios on a one page memorandum between Washington and Tehran was accurate. “We will close this very soon. We are getting close,” the source said.
Read More: US pauses ‘Project Freedom’ amid breakthrough talks with Iran
The development came shortly after US President Donald Trump paused “Project Freedom,” a naval mission launched to escort commercial ships through the blocked strait. Trump said negotiations with Iran had shown “great progress.”
“We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom (The Movement of Ships through the Strait of Hormuz) will be paused for a short period of time to see whether or not the Agreement can be finalised and signed,” Trump wrote on social media.
14-point memorandum under negotiation
According to Axios, the proposed memorandum contains 14 points and could formally end the war while launching a 30 day negotiation period for a broader agreement. The talks reportedly involve US envoys Steve Witkoff and Jared Kushner alongside Iranian officials, both directly and through mediators.
Pakistan has played a central mediation role throughout the crisis. Last month, it hosted the only peace talks between the two sides and continues to relay proposals between Washington and Tehran.
The proposed framework includes a temporary halt to Iran’s nuclear enrichment activities. In return, the United States would gradually lift sanctions and release billions of dollars in frozen Iranian funds. Both countries would also begin removing restrictions around shipping through the Strait of Hormuz.
Read More: Oil Falls as US Moves to Free Stranded Ships in Strait of Hormuz
The White House and Iran’s foreign ministry have not officially commented on the details. However, CNBC quoted an Iranian foreign ministry spokesperson as saying Tehran was evaluating the 14 point US proposal.
Oil prices tumble as markets react
Financial markets reacted quickly to the reports. Brent crude futures dropped more than eight percent and fell near the $100 per barrel mark. Global stock markets also climbed as investors anticipated a possible end to the conflict.
The Strait of Hormuz has remained largely shut since the United States and Israel launched strikes on Iran on February 28. Iran later restricted most commercial shipping through the route, while Washington imposed a blockade on Iranian ports in April.
Trump’s naval escort mission struggled to restore confidence among shipping companies. At the same time, Iran intensified attacks on vessels and targets near the Gulf.
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A French shipping company reported Wednesday that one of its container ships had been struck in the strait a day earlier. The company confirmed that authorities evacuated injured crew members.
Iranian Foreign Minister Abbas Araqchi, speaking during a visit to China, did not directly address Trump’s announcement. However, he said Tehran continued to seek “a fair and comprehensive agreement.”
Despite the optimism, uncertainty remains high. One US official told Axios that Washington could restore the blockade or resume military operations if negotiations collapse.
