The United States and Iran are reportedly close to agreeing on a one-page memorandum intended to end the war in the Gulf, according to a Pakistani mediator involved in the talks. The Pakistani source confirmed an earlier Axios report that cited U.S. officials and other participants in the discussions.
“We will close this very soon. We are getting close,” the mediator said. Pakistan hosted the war’s only peace talks last month and has continued acting as an intermediary, moving proposals back and forth between the parties.
News that a deal might be imminent sent global crude prices sharply lower, with Brent futures dropping more than 8% to about $100 a barrel. Global stock markets rose and bond yields fell on hopes that disruptions to energy supplies could end.
The White House, State Department and Iranian officials did not immediately respond to requests for comment. CNBC quoted an Iranian foreign ministry spokesperson saying Tehran was reviewing a 14-point U.S. proposal.
Axios reported the White House believed it was close to finalizing a one-page memorandum. That news came hours after U.S. President Donald Trump announced a pause to a three-day-old naval operation meant to reopen the Strait of Hormuz.
According to Axios, U.S. officials expected Iranian responses on several key points within 48 hours. The proposed memorandum would reportedly include Iran agreeing to a moratorium on nuclear enrichment, the U.S. lifting certain sanctions and releasing billions in frozen Iranian funds, and both sides easing restrictions on transit through the Strait of Hormuz.
Reuters and Axios said the one-page document contains 14 points and has been negotiated by U.S. envoys Steve Witkoff and Jared Kushner with Iranian officials directly and via mediators. In its current form, the memo would declare the regional war over and begin a 30-day period of talks aimed at producing a detailed agreement to reopen the strait, rein in Iran’s nuclear program and lift U.S. sanctions.
During that 30-day window, Iran’s shipping restrictions and the U.S. naval blockade would be gradually eased, a U.S. official told Axios. The official added that if negotiations failed, U.S. forces could reinstate the blockade or resume military action.
Earlier, President Trump announced a pause to “Project Freedom,” the naval mission launched to escort ships through the blocked strait. The operation had not succeeded in convincing many merchant vessels to transit and had coincided with renewed Iranian attacks on ships in the strait and on targets in neighboring countries. A French shipping company said one of its container ships was struck in the strait and crew members were evacuated.
When he announced the pause, Trump cited “great progress” in negotiations but gave few details. He said the blockade would remain in place while Project Freedom was paused for a short period to see whether an agreement could be finalized.
Trump had launched the naval mission after indicating he might reject Iran’s own 14-point proposal. That Iranian offer reportedly sought to set aside nuclear issues until after the fighting ended and the shipping dispute was resolved. On a visit to China, Iran’s Foreign Minister Abbas Araqchi did not directly address Trump’s comments but said Tehran was insisting on “a fair and comprehensive agreement.”
Since Feb. 28, when the United States and Israel launched military operations, Iran has effectively closed the strait to most foreign shipping, allowing passage primarily for its own vessels. In April, Washington imposed a separate blockade on Iranian ports. Project Freedom failed to convince many merchants it was safe to transit and, according to reports, provoked additional Iranian strikes; Tehran also said it was extending control to parts of the United Arab Emirates coastline across the strait.
During the mission, Iranian drones and missiles struck several ships in and around the strait, including a South Korean cargo vessel that reported an explosion in its engine room. Tehran has also repeatedly struck targets in the UAE, including a major Emirati oil port located beyond the strait, which has enabled some exports without passage through the contested waterway.
