Iran studies temporary deal as war stalemate persists

DUBAI — Iran is reviewing a proposed temporary agreement with the United States aimed at halting ongoing hostilities, Iranian media reported Tuesday, as the conflict between Iran, the U.S., and Israel remains locked in a costly stalemate.

The proposed arrangement, described by Iranian sources as a memorandum of understanding, comes more than three months after U.S. and Israeli strikes against Iran escalated tensions across the region. Central to the crisis is the Strait of Hormuz, a critical maritime route that has remained largely restricted, disrupting global energy markets and intensifying geopolitical pressure.

According to Iran’s Mehr News Agency, Tehran has yet to respond to a proposed final text and is approaching negotiations with caution due to what officials view as a longstanding history of mistrust and U.S. non-compliance with prior agreements.

The semi-official Fars News Agency reported that communications regarding the proposed deal had stalled in recent days. The last exchange reportedly involved Tehran reiterating its position on Lebanon, where Iran seeks an end to Israeli military operations targeting Hezbollah.

U.S. President Donald Trump said Monday that negotiations were continuing and expressed confidence that an agreement could be reached within the next week. Such a deal, he said, could extend a ceasefire first agreed upon in early April and lead to the reopening of the Strait of Hormuz.

Trump has repeatedly signaled optimism about reaching an agreement since mid-March. The proposed framework is expected to postpone more contentious issues, including the future of Iran’s nuclear program. Although the ceasefire has largely held since early April, military exchanges between Iran and U.S. forces have continued intermittently over the past week.

Financial markets reacted to the uncertainty, with oil prices falling by more than one percent on Tuesday. A senior official from the International Energy Agency warned that global oil inventories could decline to historically low levels if disruptions persist.

The conflict, which began on February 28, has killed thousands, primarily in Iran and Lebanon. It has also heightened pressure on international energy markets after Iran effectively closed the Strait of Hormuz, a passage that previously handled roughly one-fifth of global oil and liquefied natural gas shipments.

The crisis has also intensified fighting between Israel and Hezbollah, with Israeli forces carrying out their deepest incursion into Lebanon in 25 years.

Lebanese security sources reported that Israeli strikes continued Tuesday across several towns in southern Lebanon despite a U.S.-mediated partial ceasefire announced a day earlier. Under the arrangement, Israel would refrain from striking Beirut and Hezbollah-controlled southern suburbs, while Hezbollah would suspend attacks against Israel.

However, the ceasefire announcement has provided little reassurance to many Lebanese civilians. More than 1.2 million people remain displaced, and Israeli drone activity over Beirut continued to fuel anxiety among residents.

“Every time we return to our homes, there is a warning for us to be displaced again,” said Faten Al Chehime, who fled to a displacement camp after renewed warnings near her home in Beirut’s southern suburbs.

Israeli Prime Minister Benjamin Netanyahu is facing domestic criticism over any agreement that could limit further military operations in Beirut, particularly ahead of elections later this year.

Iranian sources said Tehran is pursuing a limited interim agreement to ease economic strain while avoiding significant concessions on its nuclear program. Iran is reportedly seeking an end to hostilities across multiple fronts, including Lebanon, access to frozen oil revenues, waivers for crude exports, removal of restrictions affecting its ports, and continued strategic influence over the Strait of Hormuz.

For Washington, the stakes remain high. Trump faces pressure to reopen the strait and stabilize fuel prices without appearing to concede too much to Tehran.

John Bolton, who served as Trump’s national security adviser during his first term and later became a critic, said the president faces difficult choices.

“I think he wants to have a deal that opens the Strait of Hormuz, and he can declare victory and get the price of gasoline down,” Bolton told Reuters. “But he knows if he makes a bad deal, he’ll be justifiably criticized for it.”

Iran’s Islamic Revolutionary Guard Corps said Tuesday that 24 vessels had transited the strait during the previous 24 hours after securing authorization from the Guard’s naval forces.

Tehran also warned Monday that it could extend maritime restrictions to the Bab el-Mandeb Strait near the Red Sea if Israeli attacks on Beirut resume.

Shipping risks continue to grow. Mediterranean Shipping Company (MSC), the world’s largest shipping group, reported Tuesday that one of its vessels was struck by two projectiles while docked at Iraq’s Umm Qasr port the previous day. Iran’s Revolutionary Guards claimed responsibility, describing the strike as retaliation for a U.S. attack on an Iranian vessel in the Gulf of Oman.

The broader humanitarian impact is also becoming increasingly severe. UNICEF warned that rising transport costs and supply chain disruptions linked to the conflict are hampering delivery of life-saving aid to crisis-hit areas including Gaza, Lebanon, the Democratic Republic of Congo, Mali, Somalia, South Sudan, and Nigeria.

As diplomatic efforts continue, uncertainty over a possible agreement and the future of regional stability remains high.