US and Iran move toward temporary deal to halt fighting

ISLAMABAD/WASHINGTON/DUBAI — The United States and Iran are moving closer to a limited and temporary agreement aimed at stopping the ongoing conflict between the two countries, according to officials and sources familiar with the negotiations.

The proposed arrangement would focus on ending hostilities and stabilizing shipping operations in the Strait of Hormuz, one of the world’s most critical oil transit routes. However, major disputes, particularly over Iran’s nuclear program, remain unresolved.

Sources said the emerging framework is designed as a short-term memorandum rather than a comprehensive peace agreement, reflecting continuing divisions between Washington and Tehran. Negotiators are reportedly prioritizing immediate de-escalation while postponing more difficult issues for future talks.

Under the proposed three-stage plan, both sides would formally end the war, address tensions surrounding the Strait of Hormuz, and begin a 30-day negotiation period for a broader settlement.

“Our priority is that they announce a permanent end to war and the rest of the issues could be thrashed out once they get back to direct talks,” a senior Pakistani official involved in mediation efforts told Reuters.

Pakistan, which has acted as a mediator between the two countries, expressed optimism that an agreement could be reached soon.

“We remain optimistic,” Pakistani Foreign Ministry spokesperson Tahir Andrabi said during a briefing in Islamabad. “A simple answer would be that we expect an agreement sooner rather than later.”

U.S. President Donald Trump also signaled confidence in the talks, saying at the White House that a deal was “very possible” and that “it’ll be over quickly.”

The negotiations come after a ceasefire announced on April 7 paused full-scale warfare between the two countries. Despite this, several major U.S. demands remain unsettled, including calls for Iran to suspend nuclear activities and fully reopen the Strait of Hormuz.

Iranian officials have responded cautiously to reports of progress. A spokesperson for Tehran’s foreign ministry said the government would respond to the proposal “in due course,” while Iranian lawmaker Ebrahim Rezaei dismissed the proposal as “more of an American wish-list than a reality.”

Iranian Parliament Speaker Mohammad Baqer Qalibaf also appeared skeptical, posting on social media that “Operation Trust Me Bro failed,” while accusing Washington of spinning the negotiations after failing to reopen the strategic waterway.

The talks have also been complicated by regional tensions involving Israel and the Iran-backed group Hezbollah. Israel said Thursday it killed a Hezbollah commander in an airstrike on Beirut, marking the first Israeli attack on the Lebanese capital since a ceasefire agreement there last month.

Iran has reportedly demanded an end to Israeli strikes in Lebanon as part of the broader negotiations with Washington.

Markets reacted positively to reports of a possible agreement. Brent crude prices fell by around 3% to approximately $98 per barrel after dropping nearly 8% the previous day. Global stock markets also rose, while bond yields declined amid expectations that tensions in the Middle East could ease.

“The contents of the U.S.-Iran peace proposals are thin, but there is an expectation in the market that further military action will not take place,” said Takamasa Ikeda, senior portfolio manager at GCI Asset Management.

Meanwhile, reports from NBC News indicated that President Trump paused a naval mission intended to reopen the blockaded Strait of Hormuz after Saudi Arabia reportedly restricted U.S. military access to certain bases and airspace linked to the operation. The White House has not commented on the report.

Despite diplomatic efforts, military activity in the region continues. U.S. Central Command confirmed that American forces fired on an Iranian-flagged oil tanker on Wednesday, disabling the vessel as it attempted to move toward an Iranian port.

Sources familiar with the negotiations said the U.S. side is being led by Trump envoy Steve Witkoff and presidential adviser Jared Kushner.

The proposed memorandum reportedly excludes several longstanding U.S. demands that Iran has consistently rejected, including restrictions on Tehran’s missile program and support for proxy militias in the Middle East.

The draft agreement also reportedly does not address Iran’s stockpile of more than 400 kilograms of near-weapons-grade uranium, one of Washington’s major security concerns.