Iran is finalising its response to a United States proposal that would declare an end to the months-long war and open a 30-day negotiating window to resolve the deepest disagreements between the two governments, regional officials said on Thursday. The American draft was passed to Tehran through Pakistani mediators last week.
The proposal seeks an immediate cessation of hostilities, the reopening of the Strait of Hormuz to commercial shipping, talks on Iran's nuclear programme and missile inventory, partial sanctions relief and a path for the release of frozen Iranian assets. President Donald Trump told reporters the United States had held "very good talks" with Iranian officials over the previous 24 hours.
Iran has previously submitted its own 14-point response to a similar proposal, demanding guarantees against future military aggression, the withdrawal of US forces from its periphery, an end to the naval blockade, the lifting of sanctions and a new mechanism governing the Strait of Hormuz. A senior Iranian official appeared to rebuff parts of the latest US text on Thursday morning, briefly sending oil prices higher.
Reopening the strait, through which roughly a fifth of seaborne crude flows, has emerged as the single most contentious issue. Mr Trump said an earlier pause in US strikes was contingent on the "complete, immediate, and safe opening of the Strait of Hormuz", while Tehran has described the American counter-blockade as a possible "prelude to a violation of the ceasefire".
Pakistan, which has mediated for several rounds of talks, said it remained hopeful a deal could be concluded soon. Officials in Islamabad and Muscat have shuttled between Tehran and Washington in recent days carrying revised language on disputed clauses.
Markets have priced in a partial agreement. Brent crude has retreated from highs near $115 a barrel touched at the height of the conflict, and equities in New York, London and Tokyo set fresh records this week on hopes that an end to fighting would ease energy and shipping costs.
Diplomats cautioned that even a signed memorandum would leave the most difficult questions — uranium enrichment limits, the status of Iranian-aligned forces in Lebanon and Iraq, and the structure of any sanctions snapback — to be hammered out during the 30-day window.