The United States and Iran are reportedly close to finalizing a preliminary agreement aimed at ending the ongoing conflict in the Gulf, according to sources involved in mediation efforts.
Sources say both sides are nearing a one-page memorandum that could formally end the war in the Gulf region.
A Pakistani mediation source said, “We will close this very soon. We are getting close,” indicating progress in talks facilitated by Pakistan.
Structure of proposed deal
The reported 14-point draft agreement is expected to include:
- Formal end to hostilities
- Steps to restore shipping through the Strait of Hormuz
- Lifting of US sanctions on Iran
- Curbs on Iran’s nuclear programme
- Framework for future negotiations
If agreed, it would be followed by 30 days of detailed negotiations toward a full settlement.
Donald Trump said there was “great progress” in talks and suggested the conflict could end if Iran agrees to previously discussed terms.
He also announced a pause in a naval mission designed to secure shipping routes through the Strait of Hormuz.
Trump warned that if no agreement is reached, military escalation could intensify further.
Iranian authorities, including Foreign Minister Abbas Araqchi, have called for a “fair and comprehensive agreement.”
The Iranian Revolutionary Guard Corps also indicated that passage through the Strait could be managed under new conditions if threats are removed.
Global markets react sharply
Reports of a possible breakthrough triggered strong global market reactions:
- Oil prices fell sharply, with Brent crude dropping around 11% to near $98 per barrel
- Global stock markets surged
- Bond yields declined on easing geopolitical fears
Investors responded positively to hopes of reduced disruption in energy supplies.
Strait of Hormuz Remains Central Flashpoint
The Strait of Hormuz remains a critical global energy route, heavily affected by ongoing tensions.
Shipping disruptions and military activity in the region have previously raised concerns over global oil supply stability.
Amid diplomatic progress, a French container ship was reportedly struck in the Strait, injuring crew members.
The incident highlights ongoing risks to commercial shipping despite peace efforts.
Earlier, Trump paused a naval mission aimed at reopening the blocked waterway, citing progress in negotiations.
Iran had previously restricted most non-Iranian shipping through the Strait since late February, escalating tensions with Western powers.
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